Starbucks

Starbucks and Ethiopia: investigative report

The Sacramento Bee has published an in-depth report by Pulitzer Prize-winning journalist Tom Knudson exploring Starbucks and its Ethiopian relationships.

Of particular interest to C&C readers will be the information on Ethiopia’s Gemadro Estate, the source of one of their Black Apron exclusive coffees. I reported on the Gemadro Black Apron when it was being offered (Starbucks Ethiopia Gemadro Estate: Corporate greenwashing?). One thing I discussed was the extent of the land clearing on the estate and its implications for the environment.

Knudson goes over this point (and many others) in greater detail. He interviewed Tadesse Gole, an Ethiopian ecologist who did his PhD work on the preservation of wild coffee and the author of a study on the environmental and cultural impacts of coffee and tea plantations in Ethiopia, including Gemadro. He found an annual deforestation rate of 12.2% in the Gemadro area, the highest in the Sheka Zone. A spokesman at Ethio-Agri CEFT, which manages the estate, says that much of the land was cleared before Gemadro obtained it, and that conservation practices include reducing erosion by planting grasses and reeds, establishing shade trees over the coffee, and leaving 3,200 acres untouched for wildlife.

Gole countered this by pointing out that many of the plants and trees are not native to Ethiopia, which changes forest composition. Knudson points out confirmation on Gemadro’s web site (which says crops planted there include some from South America, Mexico and India).

Finally, Knudson uncovered the fact that the estate was certified under Starbucks’ own CAFE Practices but that nobody from Starbucks or their certification auditor (Scientific Certification Systems, SCS) had actually visited the estate. The inspector at another firm employed by SCS was fired for poor performance, and SCS would not release the inspection report to the Sacramento Bee. This demonstrates a weakness in certification schemes in general, which often rely on third parties for inspections.

While the article comes down hard on Starbucks, it does offer some pros along with the cons, and admits,

“No coffee company claims to do more for the environment and Third World farmers…In places, Starbucks delivers on those promises, certainly more so than other multinational coffee companies.”

I will add that Starbucks has also been the forerunner in waking up Americans to “specialty” coffee, or at least that there is an alternative to Folgers and Maxwell House. Frankly, every former grocery store/big four coffee drinker that converts to Starbucks is a step in the right direction towards sustainability. And no other company has spawned more converts than Starbucks.

The article is Investigative Report: Promises and poverty. Check out the sidebar: a large aerial photo showing the estate and surrounding area, highlighting areas of forest and development. The article has also been reprinted in its entirety at the web site of the Organic Consumers Association.

A note from Terranova Estate (Starbucks Black Apron)

Last month, I posted about the latest Starbucks Black Apron selection, from Zambia’s Terranova Estate, owned by the Street family. Warren Street was kind enough to leave a long comment on the post, giving more detail on things I found difficult to research, such as the water management at the farm, the fact they have a 400-acre natural reserve, an update on the school, and that the $15,000 from Starbucks Black Apron program will go to fund a clinic.  Please give the comment a read — it’s a worthwhile addition to the post!

Starbucks Black Apron Terranova Estate

(Update: As of 2013, the family that owned Terranova made the difficult economic decision to cease farming coffee. More here.)

I have commented on two previous Starbucks Black Apron selections (Sulawesi Kopi Kampung and Ethiopia Gemadro Estate), so I may as well keep going. The latest Black Apron coffee is Terranova Estate from Zambia.

Recall that the Black Apron Exclusives are limited offerings that are described by Starbucks as being rare, exotic, distinctive, or unique in some way. Farmers receive a cash award of $15,000 for community projects.

As far as I can recall, this is the only coffee I’ve seen from Zambia. This country lags behind the big players on the African coffee scene, such as Kenya, Ethiopia, Rwanda, and Tanzania.  Zambia is a land-locked country, and at times its coffee has suffered from transportation problems getting to and sitting at port. Coffee is not a traditional crop in Zambia, which first began exporting only about 15 years ago in an effort to diversify the economy. The majority (greater than 95%) of Zambian coffee comes from the 30 to 50 large commercial coffee farms. About 40% of Zambian coffee is grown in the northeastern part of the country, the southern Mazabuka region accounts for about just under 50%.

So, what about the Terranova Estate? Terranova is one of the large estates, at 1000 hectares, of which about 20% is in coffee.  It supports a small village of 300 people year-round, and employs 2,500 people during peak harvest time. Terranova is located in the upper Kaleya Valley near the town of Mazabuka. The altitude is around 1000-1200 meters, at the low end of the arabica growing range.

During the European colonial era, when Zambia was known as Northern Rhodesia, large farms run by whites produced food for local consumption. Many European plantation owners left the country when it gained independence in 1964.  The Street family had been farming in the area for decades when they acquired Terranova in the mid-1980s.  In addition to other crops, including cut flowers for export, they began farming coffee with the help of financing from a number of sources, including the World Bank, the European Investment Bank, and the EU’s Export Development Programme.

The eco-friendliness of the estate is a bit hard to assess. Because coffee farming is relatively “new” in Zambia, the more modern techniques of pulp composting, water conservation, and natural pest control are often practiced. Southern Zambia has a very prolonged dry season, so coffee requires irrigation. In the case of Terranova, water is provided by at least one dam on the Kaleya River that was built by the Street family, as well as other advanced irrigation systems. However, there was nothing on the Terranova web site regarding their farming practices or sustainability measures.  The site does say that the “Estate contributes heavily to the wildlife management of the Lower Zambezi National Park.”

The export revenue as well as seasonal jobs provided by coffee is important to Zambia.  Zambia is one of the poorest nations in the entire world. Although I’m uncertain about biodiversity preservation measures at Terranova, there is a connection between poverty and environmental exploitation — and fighting poverty can preserve ecosystems. Terranova provides many jobs, and has constructed a school on the estate that has over 200 students.  It may very well be that this enterprise is a worthy cause to support.

As far as the coffee itself, Coffee Review pretty much flunked coffee from Terranova in 1999, calling it flat and woody. But according to Sweet Maria’s, 1999 was not a good year for Zambian coffee. Things have apparently improved.  Although not a fan of dark roasts, the Star[bucks]ling said that the Starbucks Terranova was incredibly complex, and fruity flavors emerging in stages as it cooled: blueberry, orange, apricot, and plum, with blueberry dominating.  He said it was “very African, like a fine, rich, wine,” and quite impressive.

Green Mountain and Starbucks make top 100 list

The CRO (Corporate Responsibility Officer, formerly Business Ethics magazine) has just published its eighth annual 100 Best Corporate Citizens, considered the third most influential corporate ranking.  Companies are rated on their performance in eight categories:  shareholders, community, governance, diversity, employees, environment, human rights, and product.

Coming in at #1, for the second year in a row, is Green Mountain Coffee Roasters.  The Mermaid also made the top 10, placing ninth; Starbucks has made this list all eight years. Whole Foods Market (owner of Allegro Coffee) was at #54. Missing from the list were any of the big four corporate coffee pushers.