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Starbucks in Ethiopia coffee row Starbucks in Ethiopia coffee row
(30 minutes later)
US coffee chain Starbucks is denying Ethiopia earnings of up to £47m ($88m) a year, the charity Oxfam has claimed.US coffee chain Starbucks is denying Ethiopia earnings of up to £47m ($88m) a year, the charity Oxfam has claimed.
The charity says the firm asked the National Coffee Association (NCA) to block Ethiopia's bid to trademark two types of coffee bean in the US.The charity says the firm asked the National Coffee Association (NCA) to block Ethiopia's bid to trademark two types of coffee bean in the US.
The move would have given farmers a greater share of profits, it claims.The move would have given farmers a greater share of profits, it claims.
But Starbucks denies approaching the NCA, and the association says Ethiopia is being badly advised and there is no economic case to back Oxfam's views.But Starbucks denies approaching the NCA, and the association says Ethiopia is being badly advised and there is no economic case to back Oxfam's views.
'Backwards step''Backwards step'
Last year, the Ethiopian government filed applications to trademark the coffee bean names Sidamo and Harar in US courts. The Ethiopian government filed applications to trademark the coffee bean names Sidamo and Harar in US courts.
This particular scheme is going to hurt the Ethiopian coffee farmers economically Robert NelsonNCAThis particular scheme is going to hurt the Ethiopian coffee farmers economically Robert NelsonNCA
The charity claims that Starbucks flagged up the application to the NCA - of which the firm is a leading member.The charity claims that Starbucks flagged up the application to the NCA - of which the firm is a leading member.
The NCA then filed its opposition at the US Patent and Trademark Office.The NCA then filed its opposition at the US Patent and Trademark Office.
Oxfam's Phil Bloomer said the charity had worked with Starbucks in the past and appealed to the firm to "act responsibly".Oxfam's Phil Bloomer said the charity had worked with Starbucks in the past and appealed to the firm to "act responsibly".
"Their behaviour on this occasion is a huge backwards step and raises serious questions about the depth of their commitment to the welfare of their suppliers," he said."Their behaviour on this occasion is a huge backwards step and raises serious questions about the depth of their commitment to the welfare of their suppliers," he said.
'Reduce demand''Reduce demand'
But Starbucks senior vice president of coffee procurement, Dub Hay, denied approaching the NCA to oppose the Ethiopian move. But Starbucks senior vice-president of coffee procurement, Dub Hay, denied approaching the NCA to oppose the Ethiopian move.
"We did not get the NCA involved - in fact it was the other way around, they contacted us.""We did not get the NCA involved - in fact it was the other way around, they contacted us."
Robert Nelson, head of the NCA, backed Mr Hay's claim, adding that his organisation opposed the Ethiopian move for economic reasons.Robert Nelson, head of the NCA, backed Mr Hay's claim, adding that his organisation opposed the Ethiopian move for economic reasons.
"For the US industry to exist, we must have an economically stable coffee industry in the producing world," he said."For the US industry to exist, we must have an economically stable coffee industry in the producing world," he said.
"This particular scheme is going to hurt the Ethiopian coffee farmers economically.""This particular scheme is going to hurt the Ethiopian coffee farmers economically."
He claimed that the Ethiopian government was being advised to price itself out of the market and that the trademark move would reduce demand for its coffee.He claimed that the Ethiopian government was being advised to price itself out of the market and that the trademark move would reduce demand for its coffee.
Oxfam said the NCA and Starbucks should not dictate to Ethiopia how best to sell its products.Oxfam said the NCA and Starbucks should not dictate to Ethiopia how best to sell its products.