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By purchasing coffee at negotiated outright prices, independent of the prevailing market price for commodity-grade coffee, Starbucks can help provide stability and predictability for coffee sellers. We purchase the majority of our green coffee at outright prices – 74% in fiscal 2002.
One of our priorities is to establish more direct relationships with farms and co-ops we know and trust. Purchasing directly from farms, with the assistance of a third-party facilitator, delivers more of the purchase price to farmers. In fiscal 2002, 32% of our total green coffee supply was purchased through direct relationships at negotiated prices.
Given the current economic climate, farmers prefer to know they have buyers for future harvests and income they can count on. By signing long-term contracts with these farmers, Starbucks is able to ensure our future coffee supply – and at predictable prices for Starbucks and farmers – over several years. (The typical contract runs for three to five years.) In fiscal 2002, 36% of our total coffee supply was purchased through long-term contracts.
Through Starbucks relationships with organisations such as Conservation International and Fairtrade Labelling Organizations International, we purchase Conservation (Shade-Grown) Coffee and Fair Trade Certified™ Coffee. Click on the links to learn more about these programmememes. |
