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Starbucks in Ethiopia coffee row | Starbucks in Ethiopia coffee row |
(40 minutes later) | |
US coffee chain Starbucks is denying Ethiopia earnings of up to £47m ($88m) a year, the charity Oxfam has claimed. | |
The charity says the firm asked the National Coffee Association (NCA) to block Ethiopia's bid to trademark two types of coffee bean in the US. | |
The move would have given farmers a greater share of profits, it claims. | |
But Starbucks denies approaching the NCA, and the association says Ethiopia is being badly advised and there is no economic case to back Oxfam's views. | |
'Backwards step' | |
Last year, the Ethiopian government filed applications to trademark the coffee bean names Sidamo and Harar in US courts. | |
This particular scheme is going to hurt the Ethiopian coffee farmers economically Robert NelsonNCA | |
The charity claims that Starbucks flagged up the application to the NCA - of which the firm is a leading member. | |
The NCA then filed its opposition at the US Patent and Trademark Office. | |
Oxfam's Phil Bloomer said the charity had worked with Starbucks in the past and appealed to the firm to "act responsibly". | |
"Their behaviour on this occasion is a huge backwards step and raises serious questions about the depth of their commitment to the welfare of their suppliers," he said. | |
'Reduce demand' | |
But Starbucks senior vice president of coffee procurement, Dub Hay, denied approaching the NCA to oppose the Ethiopian move. | But Starbucks senior vice president of coffee procurement, Dub Hay, denied approaching the NCA to oppose the Ethiopian move. |
"We did not get the NCA involved - in fact it was the other way around, they contacted us." | "We did not get the NCA involved - in fact it was the other way around, they contacted us." |
Robert Nelson, head of the NCA, backed Mr Hay's claim, adding that his organisation opposed the Ethiopian move for economic reasons. | |
"For the US industry to exist, we must have an economically stable coffee industry in the producing world," he said. | |
"This particular scheme is going to hurt the Ethiopian coffee farmers economically." | |
He claimed that the Ethiopian government was being advised to price itself out of the market and that the trademark move would reduce demand for its coffee. | |
Oxfam said the NCA and Starbucks should not dictate to Ethiopia how best to sell its products. |