A Cup of Conscience

  • Dennis Macray of Starbucks speaks about the coffee company’s social and environmental efforts. He was the keynote speaker for the annual George McGovern lecture for United Nations’ employees. (Photo by Nancy Greenleese)

People who work to help people in poor countries have always had big hearts. Some of
those helping these days have fat wallets as well. Multinational corporations are helping
the people who grow raw materials for those companies. They’re protecting the
environment, building schools, trying to improve living conditions – just like charities.
Nancy Greenleese reports there’s controversy over the businesses’ motives. But there’s
no denying they’re changing how help is given in poor countries:

Transcript

People who work to help people in poor countries have always had big hearts. Some of
those helping these days have fat wallets as well. Multinational corporations are helping
the people who grow raw materials for those companies. They’re protecting the
environment, building schools, trying to improve living conditions – just like charities.
Nancy Greenleese reports there’s controversy over the businesses’ motives. But there’s
no denying they’re changing how help is given in poor countries:

(sound of steaming milk and cups clanking)

At a Starbucks in Germany, customers are clamoring for their daily fix of caffeine.

“My name is Ellen Sycorder and I’m from Bonn. And I’m drinking a black coffee.”

What she doesn’t realize is that it’s coffee with a conscience.

Starbucks buys the bulk of its coffee from farmers in its program called Coffee And
Farmer Equity or CAFÉ. The farmers agree to grow quality coffee without jeopardizing
the environment. They pledge to take care of their workers and pay them fairly. Ellen
can drink to that.

“I think the idea is positive and I think I would drink more coffee here than somewhere
else.”

That’s exactly what Starbucks ordered a decade ago when it teamed up with the
environmental group Conservation International. They started by helping farmers in
Chiapas Mexico grow premium beans while protecting the region’s famous cloud forest.
CAFÉ practices grew from there. Starbucks and its non-profit partners are working with
farmers now from Costa Rica to East Timor.

Dennis Macray of Starbucks says the environmental advice is paying off.

“We’ve had farmers come to us and say these practices helped me weather a hurricane
for example, where neighboring farms had mudslides.”

Starbucks’ director of global responsibility says the company sometimes even
discourages farmers from growing beans. That might seem like a grande step backwards.
But Macray says keeping the farmers in business is the goal and sometimes that means
diversifying.

He recently found out how well it was working when he visited the mud hut of a Kenyan
farmer .

“In this case, the farmer was really proud of all the fruit and other vegetables that he had
on his farm. So he walked around and showed us how interspersed in-between the coffee
and providing shade for the coffee which is very important were a number of other crops
and fruits and things that he could either sell or his family could feed itself.”

Starbucks is among a growing list of multinational companies that are pouring money
into the developing world. Veteran international aid worker Carl Hammerdorfer says
working with big corporations made him pause at first.

“I’m a pretty skeptical, maybe even cynical, person about the motives of business. I
would have said 5 years ago that these Fortune 500 companies are only talking about
environmental and social concerns for marketing purposes, so they would improve their
image and sell more product.”

But he says global climate change prompted the companies to take their mission more
seriously. Any changes to the climate that shrink the rain forest, parch or flood land
would drastically affect their supplies of raw materials.

The former Peace Corps country director says his views have changed as he’s watched
companies such as McDonalds help farmers build more stable businesses.

“The evolution of their consciousness about social and environmental bottom lines is all
good. It’s a net gain for all of us who care about these enduring gaps.”

But there are concerns that the collapse of the economy will make the companies’
generosity shrivel up. There’s not a lot of evidence of that so far. While Starbucks is
closing 900 stores, the CAFÉ program is expanding. The company says it’s vital to its
long-term success to keep grinding on.

“Grande Cafe Latte!”

(sound of milk foaming)

For The Environment Report, I’m Nancy Greenleese.

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Starbucks Drops Organic Milk

  • Starbucks has switched to rBGH-free milk. (Photo by Mark Brush)

You won’t be able to get organic milk in your latte at Starbucks anymore. Mark Brush
reports the company says they’re trying to meet consumer demands:

Transcript

You won’t be able to get organic milk in your latte at Starbucks anymore. Mark Brush
reports the company says they’re trying to meet consumer demands:


(Sound of Starbucks store)


Starbucks says only about one percent of its customers bought organic milk. The coffee
retailer says the main reason they asked for organic was because of a concern about
recombinant bovine growth hormone. rBGH is an artificial hormone injected into dairy
cows to make them produce more milk.


The company said they decided to address that concern alone rather than carry organic
milk. Organic milk is also made without artificial hormones, as well as without
antibiotics. And the cows are given access to pasture lands. Starbucks says that’s more
than most customers asked for.


The company is now using rBGH free milk and is phasing out its organic milk.


For the Environment Report, I’m Mark Brush.

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Does Fair Trade Coffee Work?

Coffee beans can be pretty confusing these days.
At times it can seem like a political, even a
moral decision. You might want to buy those pricey specialty beans,
but now the supermarket also carries beans labeled Fair Trade
Certified. That might seem like the nicer thing to do for the farm
workers – and the environment. Julie Grant takes a look at those
claims:

Transcript

Coffee beans can be pretty confusing these days. At times it can seem like a political, even a
moral decision. You might want to buy those pricey specialty beans,
but now the supermarket also carries beans labeled Fair Trade
Certified. That might seem like the nicer thing to do for the farm
workers – and the environment. Julie Grant takes a look at those
claims:


Ahhh… it smells great in here. The owner of this coffee shop travels
the world in search of the best coffees. Linda Smithers has gone to
places such as South and Central America, Africa, and southern Asia to
visit farms and to taste coffee. She imports her favorites and roasts
them at her store.


And she has high expectations. Smithers wants to make sure that if
you’re paying a few dollars for a specialty coffee, it’s a satisfying
personal experience:


“And coffee should be able to do that for you. It should bring you
closer to you, and closer to the farmer. You should feel like you know
the farmer. And you feel passion and an intimacy with that farmer.”


I should probably have mentioned, Smithers really loves coffee.
She says the best coffees are grown on farms that are good to the
coffee trees, the local water, and the workers:


“Happy workers, safe workers, produce better coffee. They just do. I
see it every time I go to a farm. I see it when a worker enjoys what
they’re doing and feel they’re getting a fair price. They’re just like us. You
would not enjoy working and at the end of the day being given 20 cents.
You wouldn’t be happy with that. You wouldn’t work in a pleasant
way. And you wouldn’t pay attention to picking the ripe beans rather than the unripened beans.”


The Fair Trade label claims it’s found one way to help keep coffee
farmers happy and safe. The Fair Trade certification is supposed to be
a guarantee that farm co-operatives will get at least $1.21 for a pound
of beans. When coffee prices are low, that can be twice what other
farmers are paid. Fair Trade also promises farm workers have safe
conditions and are paid a living wage.


Michigan State University Professor Dan Jaffee wanted to know if the
Fair Trade system was doing what it set out to do:


“The Fair Trade movement claimed to be able to help bring them out of
poverty, improve their farming practices, make them more sustainable
and just generally improve conditions a lot, and I was interested in
finding out whether that was the case.”


Jaffee spent a few years in Oaxaca, Mexico studying two farming
communities. Some coffee farmers were part of Fair Trade
cooperatives, some decided against it. He’s just published a book called
Brewing Justice to report his findings. Jaffee says families
that joined Fair Trade were more food secure when the market price of
coffee fell:


“That is, they have food shortages much less of the time. They have
significantly greater access to animal protein, foods like milk and
meat and cheese in their diet. And they’re essentially able to feed
their children much more of the time than their neighbors, who were
really, at the time the coffee prices were at their low point at the
time I was doing my research in 2001, 2002, 2003, who were definitely
showing signs of malnutrition and there was a significant problem with malnutrition
in these communities.”


Fair Trade is still only a small fraction of the coffee market, but
its share of customers is growing, and the big players are taking
notice. Nestle is marketing Fair Trade products in the UK, and you can
find the Fair Trade seal at your neighborhood Starbucks. Only 3.7%
of Starbucks coffee is Fair Trade certified, but Jaffee says
that small percentage still makes Starbucks the single largest buyer of
Fair Trade coffee in the US.


Smaller coffee shop owners, such as Linda Smithers, also
buys some Fair Trade coffee. But Smithers doesn’t think guaranteeing a
specific price is the best way to encourage farms to grow the best
coffee:


“You’re given a price regardless of the quality. I have a problem
with that. I do not think that’s a sustainable agricultural model.
Remember, I’m a coffee person. I’m not a cause person, I’m
a coffee person. And to me, sustainable is: the product must be
outstanding and have good sociological and ecological practices, then
get a fair price.”


Smithers believes farms that treat workers and the environment well
naturally have the best tasting coffee and will always get a fair
price in the specialty coffee market.


Some conservative economists agree with her. They say the Fair Trade movement
will only continue to grow if looks beyond the socially-conscious crowd and continues
to improve the taste and consistency. That’s what people eyeing those gourmet coffee beans
want.


Smithers says Fair Trade has already been a success in that it’s put
issues of working conditions and the environment on the table…
and she could sit and drink a cup and talk about that for hours.


For the Environment Report, I’m Julie Grant.

Related Links

State Boosts Investment in Green Energy

A growing number of institutions and governments are turning to renewable energy for their electricity. The GLRC’s Brad Linder reports:

Transcript

A growing number of institutions and governments are turning to renewable
energy for their electricity. The GLRC’s Brad Linder reports:


According to the EPA, the U.S. Air Force is the top buyer of renewable
energy in the country, with over a million megawatts of electricity
coming from wind, solar, hydro, and geothermal sources. Whole Foods Market, Johnson
& Johnson, and Starbucks also rank high on the
list.


The state government of Pennsylvania recently announced it would
double its purchase of wind and hydroelectric energy. State Environmental Secretary
Kathleen McGinty says the program will cost the state about half a million dollars. That’s
less than one percent of its total electric bill.


“So instead of us sending literally 30 billion dollars out of the state that Pennsylvanians
currently do to buy energy resources from abroad, we are investing in our own energy
resources here at home.


The doubling of its purchase makes Pennsylvania the biggest buyer of green energy
among state governments.


For the GLRC, I’m Brad Linder.

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