STARBUCKSETHICAL

COFFEE

SOURCING ANDFARMER SUPPORT
We’re committedto buying and serving high quality, responsibly grown, ethically tradedcoffee to help create a better future for farmers and a more stableclimate for our planet.
We know our long-term success is linked to the success of thehundreds of thousands of farmers who grow our coffee. That’s why wework on-the-ground with farmers to help improve coffee quality, ensure
environmental best practices and invest in loan programs for coffeegrowing communities.
It’s not just the right thing to do, it’s the right thing to do for ourbusiness. By helping to sustain coffee farmers and strengthen theircommunities, we ensure an abundant supply of high-quality coffee forthe future.

Our Goal
By 2015, all of our coffee will be third-party verified or certified, either
through Coffee and Farmer Equity (C.A.F.E.) Practices, Fairtrade, oranother externally audited system.
Our approach to sourcing responsibly grown and ethically tradedcoffee is grounded in C.A.F.E. Practices, a comprehensive set ofsocial, economic, environmental, and quality guidelines developed byStarbucks in collaboration with Conservation International.

respectingPEOPLEandPLACESIn 2010 we bought 84% of our total coffee this way—226 million
pounds worth.

77%

81%

84%

77%
2008
2008

81%
2009
2009

84%
2010
2010

Percentage of C.A.F.E. Practices verified coffee purchased annually1

Includes green coffee purchases for all S

Our Partnershipwith Conservation International
We’ve been working with CI for over 12 years, developing andapplying the comprehensive set of environmental, social and economic
guidelines we use to source ethical coffee. These guidelines, known as
Coffee and Farmer Equity (C.A.F.E.) Practices, help us to evaluate andreward producers of high-quality, socially responsible and sustainably
grown coffee.
As part of our commitment to continuous improvement and theexpansion of support for coffee growing communities globally, we havecompleted the first annual results assessment of C.A.F.E. Practices.
This report, along with field studies from Guatemala, measures theadoption of best practices at a country and global level, identifies
areas for program enhancement and helps us to better understandhow C.A.F.E. Practices contributes to improved farmer well-being andenvironmental health.
In addition to C.A.F.E. Practices, the newest phase of our partnershipgoes beyond the coffee farm to protect rich, surrounding landscapes.
By piloting innovative projects with coffee-growing communities, we’reimproving coffee production, conserving and restoring natural habitat,
and facilitating farmer access to forest carbon markets.
In Chiapas, Mexico, three nurseries have produced over 112,000
seedlings to restore the natural forest cover and help improve quality byemploying shade-growing best practices. In North Sumatra and Aceh
Tengah, both in Indonesia, farmers also receive training on compostingand pruning and other extension services. Each project employs
different approaches to addressing the climate challenges facing coffee
producers while exploring the potential of carbon markets to benefit
both livelihoods and conservation efforts.
Learn more about C.A.F.E. Practices and the results from our latest
study throughout this fact sheet by visiting us online at:
http://www.starbucks.com/responsibility
http://www.conservation.org/starbucks

STARBUCKS ETHICAL COFFEE SOURCING

Starbucks C.A.F.E. Practices: The Results

PEOPLE

PLANETPRODUCT

Purpose

Purpose

PurposeEnsure fair and non-discriminatory hiring andemployment policies. Protect employees
from workplace hazards. Conform to nationallaws as well as to International conventions
related to occupational health, safety and living
conditions. Strive to improve the quality of life
for coffee farmers and workers.

Ensure that all coffee is grown and processedin a manner that minimizes environmental
impacts. Many of the coffee-growing regions
overlap with areas rich in biodiversity—calledKey Biodiversity Areas. By encouraging
sustainable farming, Starbucks helps toalleviate pressures on these valuable habitats.

Ensure that all coffee sold to Starbucks meetsthe high quality standards. We strive tocreate a program that is financially accessible
for small farmers and rewards all suppliers
for ongoing improvement of social andenvironmental practices.

Criteria Verified

Criteria Verified

Pre-Requisite

Environmental

SocialEconomic

Wages

Benefits

Soil

Waste

Equitable
Payments

Green
CoffeePreparation

Education

MedicalCare

Water
Use andConservation

ShadeCanopy

Financial
Transparency

Cup Quality

LivingConditions

HumanRights

EnergyAgroChemical
Use

Long-Term
Viability

Wildlife

Results

Results

Results

Participating farms provided over 1 million
workers with full-time, part-time, or temporary
employment.

Coffee farms are making valuable contributions
to habitat conservation in these globally
important areas for biodiversity.

Small farms of less than 12 hectares makeup 99% of the farms participating in C.A.F.E.
Practices, and Starbucks sourced more thanhalf of all coffee from small farms in 2008.

In 2008, 76% of workers
employed on participating farms
earned higher than minimum
wage.

99% of participating farms havenot converted any natural forest
habitat to coffee production areas
since 2004.

75% of medium and large farms
covered medical expenses forworkers.

87% of farms used shadegrowing techniques and maintain
forest canopy on over 451,000
hectares of productive land.

As a prerequisite to entering
C.A.F.E. Practices, suppliers are
required to be fully transparent
regarding their prices paid forcoffee.

80% of medium and large farms
paid their workers sick leave.

Participating farms havedesignated over 100,000
hectares (or nearly 250,000acres) as conservation areas.

99% of small farms that had
school age children living on thefarm ensured that these children
attended school.

88% of coffee processing mills
compost organic matter on site.

STARBUCKS ETHICAL COFFEE SOURCING

Over 125,000 small farmers
received a receipt for their coffee
harvest.
Sustainability incentives areoffered to suppliers who achieve
the highest levels in social andenvironmental performance.

Using Our Size for Good
The geographic reach of C.A.F.E. Practices is vast and includes coffee producers in 20 countries across four continents. These countries
significantly overlap with 8 of the world’s most biologically rich but most threatened regions. All of the countries supplying coffee via
the C.A.F.E. Practices program are developing countries, with over 20% falling in the low income category. By ensuring fair wages andpromoting access to health care and education, Starbucks is working to improve the well-being of coffee farmers worldwide.
In Guatemala, CI developed and implemented a field survey among coffee farmers in two regions—Huehuetenango and Jalapa—to assessand evaluate the results of the C.A.F.E. Practices program for farmers, workers and conservation. Significant findings include: C.A.F.E.
Practices participants at both sites were more likely to report improvements in coffee quality than non participants; Farmers participating in
C.A.F.E. Practices were more likely to invest in conservation and water quality; and there was a strong relationship between participation inC.A.F.E. Practices and greater stability of natural habitat on farms. Farmers participating in C.A.F.E. Practices also reported a decrease in theuse of herbicides, pesticides and chemical fertilizers at rates significantly higher than those in the control group, which is good for the healthof the workers and of the soil.

Countries with C.A.F.E. Practices Verified Producers

MexicoHonduras

Guatemala
El Salvador

Nicaragua

Colombia
BurundiRwanda

Peru

Kenya

Indonesia

Tanzania
ZambiaBoliviaPapua
New Guinea

Ethiopia

PanamaCosta Rica

East Timor

Brazil513,785

616,066

Coffee Hectares

102,281

Total Number of Hectares*
Verified through C.A.F.E. Practices

Conservation Hectares*1 hectare = 2.5 acres

For more information visit: http://www.starbucks.com/responsibility

PHOTO CREDITS (FRONT TO BACK): © CI/PHOTO BY STERLING ZUMBRUNN,© STARBUCKS COFFEE COMPANY