This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/6225514.stm

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Starbucks in Ethiopia coffee vow Starbucks in Ethiopia coffee vow
(about 6 hours later)
Starbucks has agreed a wide-ranging accord with Ethiopia to support and promote its coffee, ending a long-running dispute over the issue.Starbucks has agreed a wide-ranging accord with Ethiopia to support and promote its coffee, ending a long-running dispute over the issue.
The US retailer will market, distribute and, in some cases, license Ethiopia's range of high-quality coffee brands.The US retailer will market, distribute and, in some cases, license Ethiopia's range of high-quality coffee brands.
A row over the recognition and use of trademarks for its coffee has stymied co-operation between the two sides.A row over the recognition and use of trademarks for its coffee has stymied co-operation between the two sides.
But it is hoped the deal will act as a catalyst to raise prices and improve the livelihoods of Ethiopian farmers.But it is hoped the deal will act as a catalyst to raise prices and improve the livelihoods of Ethiopian farmers.
'Milestone''Milestone'
Although Ethiopian coffees command a premium price in foreign markets, particularly the US, farmers who grow the beans often live in extreme poverty.Although Ethiopian coffees command a premium price in foreign markets, particularly the US, farmers who grow the beans often live in extreme poverty.
Hopes of an alliance between Starbucks and Ethiopia receded last year when the retailer objected to a plan to license rights to coffee brands in countries where they were not registered as trademarks.Hopes of an alliance between Starbucks and Ethiopia receded last year when the retailer objected to a plan to license rights to coffee brands in countries where they were not registered as trademarks.
Having the commitment and support of Starbucks will improve the income of farmers and traders Getachew Mengistie, Ethiopian Intellectual Property OfficeHaving the commitment and support of Starbucks will improve the income of farmers and traders Getachew Mengistie, Ethiopian Intellectual Property Office
Starbucks was also accused of opposing potentially lucrative trademark applications in the US.Starbucks was also accused of opposing potentially lucrative trademark applications in the US.
But the new agreement acknowledges Ethiopian ownership of popular coffee designations such as Yirgacheffe, Harrar and Sidamo, regardless of whether they are registered or not.But the new agreement acknowledges Ethiopian ownership of popular coffee designations such as Yirgacheffe, Harrar and Sidamo, regardless of whether they are registered or not.
It will also allow Starbucks to use coffee types in certain markets under agreed conditions.It will also allow Starbucks to use coffee types in certain markets under agreed conditions.
Ethiopian farmers will not receive royalty payments from the deal, but it is hoped that more effective distribution and marketing will help boost demand and, in time, lift prices.Ethiopian farmers will not receive royalty payments from the deal, but it is hoped that more effective distribution and marketing will help boost demand and, in time, lift prices.
"This agreement marks an important milestone in our efforts to promote and protect Ethiopia's speciality coffee designations," said Getachew Mengistie, director general of the Ethiopian Intellectual Property Office."This agreement marks an important milestone in our efforts to promote and protect Ethiopia's speciality coffee designations," said Getachew Mengistie, director general of the Ethiopian Intellectual Property Office.
Starbucks recognises the value of Ethiopian beansStarbucks recognises the value of Ethiopian beans
"Having the commitment and support of Starbucks will help enhance the quality of Ethiopian fine coffees and improve the income of farmers and traders.""Having the commitment and support of Starbucks will help enhance the quality of Ethiopian fine coffees and improve the income of farmers and traders."
Ethiopian coffees have been trademarked in the US, Japan, Canada and Europe, while applications are pending in China, Brazil and India.Ethiopian coffees have been trademarked in the US, Japan, Canada and Europe, while applications are pending in China, Brazil and India.
Fairtrade concernFairtrade concern
But fair-trade campaigners argue that this has done little so far to reward Ethiopian farmers, some of whom receive only $300 a year for their crop.But fair-trade campaigners argue that this has done little so far to reward Ethiopian farmers, some of whom receive only $300 a year for their crop.
Ethiopian officials said the ultimate aim of the agreement was to try to boost prices, which for Starbucks purchases averaged $1.42 per pound last year.Ethiopian officials said the ultimate aim of the agreement was to try to boost prices, which for Starbucks purchases averaged $1.42 per pound last year.
Starbucks said the accord was far more comprehensive than previous agreements.Starbucks said the accord was far more comprehensive than previous agreements.
"We are extremely pleased that this agreement supports both the Ethiopian speciality coffee industry and the farmers and their communities that produce these fine coffees, while allowing us to bring them to our customers," said chairman Howard Schultz."We are extremely pleased that this agreement supports both the Ethiopian speciality coffee industry and the farmers and their communities that produce these fine coffees, while allowing us to bring them to our customers," said chairman Howard Schultz.
Ethiopia is Africa's third largest coffee producer, behind Uganda and the Ivory Coast, and coffee is its largest source of foreign exchange. Ethiopia is Africa's largest coffee producer, ahead of Uganda and the Ivory Coast, and coffee is its largest source of foreign exchange.