Starbucks More Than Doubles Global Farmer Loan Commitment to $50 Million by 2020
22 June 2015 - 8:00PM
Business Wire
Company Achieves Global Responsibility Goal of
Investing $20 Million by 2015; Commits to Another $30 Million over
Five Years
First Loan Commitment of FY16 in Collaboration
with the International Finance Corporation
Starbucks Global Farmer Fund Program Part of
Company’s Billion Dollar Ethical Sourcing Initiative; In 2015 99%
of Starbucks Coffee Supply Chain Verified as Ethically Sourced
Starbucks Coffee Company (Nasdaq:SBUX) today announced an
additional commitment of $30 million as part of its Global Farmer
Fund program, one aspect of the company’s comprehensive ethical
sourcing initiatives that help ensure the sustainability of the
specialty coffee industry. This investment is the continuation of
an initial $20 million commitment made in 2008, and distributed in
collaboration with leading lending organizations such as Root
Capital and the Fairtrade Access Fund. To date, this financing has
impacted more than 62 cooperatives in 8 countries benefiting more
than 40,000 farmers.
“In 2015, we have achieved a number of milestones across our
ethical sourcing initiatives but we know that the work isn’t done.
This new investment demonstrates how we remain steadfast in our
support of farmers around the world,” said Craig Russell, executive
vice president of Global Coffee for Starbucks. “By providing access
to capital, farmers have the ability to make strategic investments
in their infrastructure, offering the stability they need to manage
ongoing complexities so that there is a future for them and the
industry.”
Starbucks first farmer loan investment was in 2000 with Root
Capital (formerly known as Ecologic Enterprise Venture) for a
project in the El Triunfo Biosphere Reserve in Chiapas, Mexico.
This work helped establish a revolving line of credit focused
largely on short-term financing for farmer cooperatives. Today,
farmer financing has evolved to include medium- and long-term
investments in order to help provide the necessary stability to
manage climate variables by supporting agronomy, restoration and
infrastructure improvements. This work directly influences coffee
quality, sustainability and overall profitability for the entire
specialty coffee industry.
“Starbucks has always understood the importance of investing in
coffee farmers offering access to credit and financial management
training. Farmers who receive loans from Root Capital are able to
increase their livelihoods and become more reliable and resilient
suppliers by improving environmental protection, crop yields, and
product quality; thereby becoming more reliable and resilient
suppliers. Together, we will make an even greater difference
in the lives of coffee farmers and their families across Africa,
Asia and Latin America,” said William Fulbright Foote, Founder and
CEO of Root Capital.
The $50 million Global Farmer Fund aligns to Starbucks global
sourcing strategy which includes purchasing coffee from more than
30 countries worldwide and offered to customers in single origin,
blend and small-lot programs and beverages. Later this week, the
first allocation from the Global Farmer Fund will be announced as
part of a collaborative effort led by the IFC and other
organizations.
In 2015 Starbucks verified 99% of its coffee as ethically
sourced. For over 15 years, Starbucks has worked with Conservation
International to design a rigorous set of methods to ensure
environmental and social best practices are used in growing and
processing coffee. To date, more than a million farmers and workers
on four continents have benefited by participating in Coffee and
Farmer Equity (C.A.F.E) Practices. In addition, Starbucks ethical
sourcing program includes a network of six farmer support centers
around the world (Rwanda, Tanzania, Colombia, China, Costa
Rica and Ethiopia) as well as the purchase of a farm in Costa Rica
acting as a global agronomy center.
“Starbucks ability to achieve the milestone of ninety-nine
percent of its coffee being ethically sourced is a reflection of
their ability to bring the right people and organizations together
in support of a common goal of sustainability. Only through a
collective approach that provides farmers with access to
information, tools and financing will we be able to transition
coffee - the most widely traded tropical agricultural commodity on
Earth - to becoming the first sustainably produced commodity,” said
Dr. M. Sanjayan, Executive Vice President, Senior Scientist for
Conservation International.
To learn more about Starbucks commitments, read Starbucks 2014
Global Responsibility Report here:
http://news.starbucks.com/news/starbucks-2014-global-responsibility-report
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to
ethically sourcing and roasting high-quality arabica coffee. 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.
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StarbucksHaley Drage, 206-318-7100press@starbucks.com
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