Starbucks Cancels Fair Trade Certification! Changes Stance on Ethical Coffee Sourcing

According to a February 16th report by British inews news network, Starbucks has severed its partnership with the Fairtrade Foundation. Subsequently, Peg Willingham, Executive Director of Fairtrade USA responsible for Starbucks' global relations, issued a statement to relevant supply management departments, stating: "Although the partnership has been terminated, Starbucks will continue to purchase Fairtrade coffee beans. However, it will gradually reduce purchasing Fairtrade coffee from Europe, the Middle East, and Africa regions."

At the same time, the statement also indicated that while no longer cooperating with the Fairtrade Foundation, Starbucks has developed new internal plans to continue maintaining and implementing the Coffee and Farmer Equity (C.A.F.E) practices, which were collaboratively developed with the environmental non-profit organization Conservation International.

Severing ties with the Fairtrade Foundation means that coffee sold at Starbucks worldwide will no longer carry Fairtrade certification in the future.

About the Fairtrade Foundation

The Fairtrade Foundation that Starbucks partnered with is the UK member of Fairtrade International, established in 1992 as an independent non-profit organization. The organization unites more than 20 labeling initiatives across Europe, Japan, North America, Mexico, Australia/New Zealand, as well as producer organization networks in Asia, Africa, Latin America, and the Caribbean.

Starbucks' History with Fairtrade

Starbucks began its partnership with the Fairtrade Foundation in 2000. By 2010, the Fairtrade Foundation provided Starbucks with two agreements regarding coffee fair trade, with Starbucks investing over $14 million to fund loans for farmers in Fairtrade cooperatives. Subsequently, Starbucks used coffee beans provided by self-operating growers registered with the Fairtrade Foundation, as well as democratically operated coffee cooperatives and associations.

It was precisely because of this partnership with the Fairtrade Foundation that in 2004, Starbucks began formulating strict procurement guidelines – the Coffee and Farmer Equity (C.A.F.E) practices. The establishment of this program promoted environmentally responsible growing methods, ensured minimum wage standards for coffee farmers, provided fairer working environments, and increased economic transparency.

Concerns and Criticism

After news of the terminated partnership with the Fairtrade Foundation emerged, many related groups expressed concern. Because Starbucks cancelled Fairtrade's independent audits, the Coffee and Farmer Equity (C.A.F.E) practices might become less strict than before.

At the same time, these groups also questioned Starbucks' Coffee and Farmer Equity (C.A.F.E) practices, stating that according to Fairtrade rules, Starbucks must pay farmers minimum prices for coffee beans plus Fairtrade premiums, while meeting standards that protect workers' and environmental rights. However, the C.A.F.E practices do not guarantee "paying farmers minimum prices for coffee beans." Additionally, Fairtrade standards require "purchasing coffee from small-scale farmers organized in cooperatives," but C.A.F.E does not implement such requirements.

Starbucks' Response

In response to these questions, a Starbucks spokesperson replied: "It is inaccurate to call C.A.F.E Starbucks' own standard. This was developed in collaboration with Conservation International and independently verified by SCS Global Services. These standards have been in place since 2004, representing a robust program."

Regarding concerns that the Coffee and Farmer Equity (C.A.F.E) practices might become less strict without Fairtrade Foundation audits, the spokesperson responded: "Going forward, audits will be conducted by SCS Global Services, a leading third-party organization in environmental and sustainability certification." The company primarily provides high-quality sustainability services, and Starbucks' vigorous environmental efforts in recent years have been closely related to SCS.

Not the First Policy Change

This is not the first time Starbucks has changed its stance on ethical sourcing. In 2015, Starbucks committed to using 100% cage-free eggs (meaning eggs from free-range hens) in all food items containing eggs sold at its global stores (including both company-operated and franchised locations) by 2020.

However, not long after, Starbucks changed this commitment, stating that only company-operated Starbucks stores would follow this practice. This meant that 40% of Starbucks' franchised stores worldwide would be excluded from this commitment.

Image source: Internet

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