On 26 October 2006, Oxfam accused
Starbucks of asking the
National Coffee Association (NCA) to block a
U.S. trademark application from
Ethiopia for three of the country's coffee beans,
Sidamo,
Harar and
Yirgacheffe.
[8] They claimed this could result in denying
Ethiopian coffee farmers potential annual earnings of up to
£47m.
Robert Nelson, the head of the NCA, added that his organisation initiated the opposition for economic reasons, "For the U.S. industry to exist, we must have an economically stable coffee industry in the producing world... This particular scheme is going to hurt the Ethiopian coffee farmers economically". The NCA claims the Ethiopian government was being badly advised and this move could price them out of the market.
[8]
Facing more than 90,000 letters of concern, Starbucks placed pamphlets in its stores accusing Oxfam of "misleading behavior" and insisting that its "campaign need[s] to stop". On 7 November,
The Economist derided Oxfam's "simplistic" stance and Ethiopia's "economically illiterate" government, arguing that Starbucks' (and
Illy's) standards-based approach would ultimately benefit farmers more.
[9]
Nonetheless, on 20 June 2007, representatives of the Government of Ethiopia and senior leaders from Starbucks Coffee Company announced that they had concluded an agreement regarding distribution, marketing and licensing that recognises the importance and integrity of Ethiopia's speciality coffee designations.
[10]