STARBUCKSETHICAL

COFFEE

SOURCING ANDFARMER SUPPORT
We’re committed

to 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, ensuresocial and environmental best practices and invest in loan programs forcoffee-growing 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.

respectingPEOPLE
andPLACESIn 2011 we bought 86% of our total coffee this way—367 million
pounds worth.

77 %

81 %

84 %86 %

2008
77%

2009
81%

2010
84%

2011
86%

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

2008

2009

2010

2011

Our Partnershipwith Conservation International
We’ve been working with CI for more than 14 years, developing andapplying the comprehensive set of environmental, social and economic
guidelines we use to source ethical coffee. These guidelines, known asCoffee 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
have conducted annual results assessments of the C.A.F.E. Practices
program since 2008. These reports, along with field studies from
Guatemala and Colombia, measure the adoption of best practices ata country and global level, identify areas for program enhancement,and help us to better understand how C.A.F.E. Practices contributes toimproved farmer well-being and environmental health.
In Guatemala and Colombia, CI developed and implemented fieldsurveys among coffee farmers to assess and evaluate the results of
the C.A.F.E. Practices program for farmers, workers and conservation.
Significant findings from Guatemala include: a strong relationshipbetween participation in C.A.F.E. Practices and greater stability ofnatural habitat on farms, as well as a decrease in the use of herbicides,
pesticides and chemical fertilizers at rates significantly higher thanthose not participating in the program, which is good for the health of
the workers and of the soil. In Colombia, the survey findings include:
C.A.F.E. Practices farmers had larger farms and higher productivity on
their farms, resulting in higher sales and overall income.
In addition to C.A.F.E. Practices, our partnership goes beyond thecoffee farm to protect rich, surrounding landscapes. By piloting
innovative projects with coffee-growing communities, we’re improving
coffee production, conserving and restoring natural habitat, andfacilitating farmer access to forest carbon markets.
In Chiapas, Mexico, three nurseries have produced more than 200,000
seedlings to restore the natural forest cover by employing shadegrowing best practices, and more than 23,000 tons of carbon offsets
have been sold. In North Sumatra and Aceh Tengah, both in Indonesia,
14 communities have established conservation coffee agreements andfarmers receive training on composting, pruning and other extension
services. Each project employs different approaches to addressing theclimate challenges facing coffee producers while exploring the potentialof carbon markets to benefit both livelihoods and conservation efforts.
Learn more about C.A.F.E. Practices and the results from our latest
study 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: 2008-2010 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—called
Key Biodiversity Areas. By encouraging
sustainable farming, Starbucks helps toalleviate pressures on these valuable habitats.

Ensure that all coffee sold to Starbucks
meets our 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

SocialEconomicWages

Benefits

SoilWaste

EquitablePayments

Green
CoffeePreparation

Education

MedicalCare

Water
Use andConservation

ShadeCanopy

Receipts/Invoices

Cup Quality

LivingConditions

HumanRights

EnergyAgroChemical
Use

Long-Term
Viability

Wildlife

Farm
Traceability

Results

Results

Results

Participating farms provided more than 2.9
million workers with full-time, part-time, or
temporary employment from 2008-2010.

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

Small farms of less than 12 hectares makeup at least 98% of the farms participating in
C.A.F.E. Practices in each year from 2008 to2010.

More than 425,000 workers
employed on participating farms
earned higher than the minimum
wage over each of the analysisyears.
At least 89% of full-time workers
employed by mills received
paid sick leave over each of theanalysis years.
100% of small farms that had
school age children living on thefarm ensured that these children
attended school over each of theanalysis years.

At least 99% of participating
farms had not converted any
natural forest habitat to coffee
production areas since 2004.
99% of large farms used organic
matter or cover crops to improveor maintain soil fertility.
Participating farms designatedover 102,000 hectares (or over250,000 acres) as conservation
areas in each of the analysisyears.
At least 90% of stand-alone
mills processed waste in a way
as to not contaminate the local
environment over each of theanalysis years.

STARBUCKS ETHICAL COFFEE SOURCINGAt least 94% of Producer Support
Organizations, which support
networks of small farms, had
tracking systems from point ofpurchase to point of export ineach of the analysis years.
At least 87% of Producer Support
Organizations ensured small
farms received a receipt for theircoffee harvest over each of theanalysis years.
One time incentives are offeredto suppliers who achieve thehighest performance level and to
those that demonstrate significant
improvement over time with theaim of encouraging continuous
improvement in the program.

Using Our Scale 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 eight 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.
Starbucks offers technical support to coffee producers through our farmer support centers. These centers allow Starbucks agronomistsand quality experts to collaborate directly with farms to encourage responsible growing practices and improve the quality and size of theirharvests. We have farmer support centers in Costa Rica and Guatemala that serve coffee communities throughout Central America, an East
Africa farmer support center in Rwanda and we expanded our East African outreach in 2011 with an office in Tanzania. In 2012, we plan toopen our first Asia farmer support center in the Yunnan province of China.
Countries with C.A.F.E. Practices Verified Producers

MexicoChina*First verified in 2011

Honduras

GuatemalaEl Salvador

Nicaragua

Colombia
BurundiKenya

RwandaPeruIndonesia

Tanzania
ZambiaBoliviaPapua
New Guinea

Ethiopia

PanamaCosta Rica

East Timor

BrazilFarmer Support Center
Planned Farmer Support CenterHectares* Verified through C.A.F.E. Practices

Used for Coffee
Growing
Set Aside asConservation Area

17.59%
2008

22.86%
2009

23.15%
2010*1 hectare = 2.5 acres

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

PHOTOS (front to back): © CI/photo by Miguel Angel de la Cueva;
photo courtesy of starbucks coffee company
03/12