SEATTLE, March 18, 2013 - To help coffee farming communities around the world mitigate climate change impact, and support long-term crop stability, Starbucks Coffee Company (NASDAQ: SBUX) today announced that it is expanding the company's $70 million comprehensive ethical sourcing program with a new farming research and development center in Costa Rica. These programs are part of Starbucks ongoing billion-dollar commitment to ethically sourcing 100 percent of its coffee by 2015.
Starbucks will adapt this active 240-hectarefarm located on the slopes of the Poas Volcano into a global agronomy center. The work happening on this farm will enable the company to expand its Coffee and Farming Equity practices (C.A.F.E.), the industry-leading ethical sourcing model developed in partnership with Conservation International which ensures coffee quality while promoting social, environmental and economic standards.
In addition to supporting resiliency for farmers around the world, this farm will also influence the development of coffee varietals based on the insight offered through soil management processes. This proprietary work could offer significant advantage in the development of future blends.
"This investment, and the cumulative impact it will have when combined with programs we have put into place over the last forty years, will support the resiliency of coffee farmers and their families as well as the one million people that represent our collective coffee supply chain," said Howard Schultz, Starbucks chairman, president and ceo. "It also opens up an opportunity for Starbucks to innovate with proprietary coffee varietals that can support the development of future blends."
In total, Starbucks has invested more than $70 million in collaborative farmer programs and activities over the past 40 years, which include C.A.F.E. practices, farmer support centers, farmer loans and forest carbon projects. All of these integrated programs directly support improving farmer livelihoods and a long-term supply of high-quality coffee for the industry. This new facility will build on and globally scale the work currently happening at five farmer support centers worldwide in Rwanda, Tanzania, Colombia, China – as well as Starbucks first farmer support center which opened in San Jose, Costa Rica in 2004.
Starbucks farmer support centers are home to agronomists and quality experts working directly with farmers to provide support in growing high-quality arabica coffee. By providing farmers with expertise and training in soil management, field-crop production and milling processes, these practices can improve the quality and size of the harvest. The varied elevation of the farm will allow the agronomists to test responsible growing practices while ensuring robust biological diversity. The research discoveries and best practices from this work will inform growing principles for farmers around the world.
"The convergence of climate change and ecosystem deterioration creates stress on the ability of farmers to produce crops. The work of Starbucks over the last several years to address many of these issues facing coffee producers - including the environmental, economic and social development of coffee production - is very impressive," said Peter Seligmann, chairman and ceo of Conservation International. "The opportunity this continued investment brings will ensure the most innovative resources are brought to bear for sustainability and resilience across all farming communities."
In 2008 Starbucks and Conservation International began conducting impact assessments of C.A.F.E. practices on coffee farmers and communities, and in 2012 aggregated the year-over-year performance impact. For example, on average farmers employing C.A.F.E. practices saw 98 percent of farms maintaining or improving soil fertility and 100 percent of school-age children on smallholder farms were able to attend school. Of the 545 million pounds of coffee purchased by Starbucks in fiscal year 2012, across 29 countries, 93 percent of it was ethically sourced.
Starbucks has signed an agreement to purchase the Costa Rican farm through a subsidiary of Starbucks Coffee Trading Company. The terms of the purchase are not being disclosed and upon final closing in May, Starbucks will immediately begin evolving the location into a research and development facility.
About Starbucks Corporation
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting the highest-quality arabica coffee in the world. Today, with stores around the globe, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at www.starbucks.com.
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