The two parties announced late last night they had concluded an agreement over the distribution, marketing and licensing that recognizes the importance and integrity of Ethiopia’s specialty coffee brands – Yirgacheffe, Harrar and Sidamo.

“Ethiopia salutes Starbucks for its exemplary display of global corporate citizenship,” said Dr Samuel Assefa, the Ethiopian ambassador to the United States.

“This alliance highlights the significance of visionary entrepreneurs in creating space for win-win engagements between corporations that operate globally and developing countries such as ours.
“Starbucks has reiterated its commitment that it will not oppose Ethiopia’s efforts to obtain trademarks for its speciality coffees.”

Ethiopia has for more than a year been trying to trademark its premium brands in order to be able to demand higher payment for them, something that could bring nearly $80m (£40m) more to its coffee sector each year – a 25% increase in its coffee export earnings.

The Seattle-based coffee giant, whose annual turnover is close to $8bn, had been accused of blocking those attempts and attracted worldwide criticism from organisations such as Oxfam which accused it of double standards in promoting itself as an ethical company while acting tough towards poor coffee farmers in developing countries.

The new agreement allows Starbucks to use and promote the Ethiopian coffee labels in markets both where trademarks exist for them as well as where they may not.

“Our customers know that some of the highest quality coffees in the world come from Ethiopia,” said Howard Schultz, Starbucks chairman.

“We are extremely pleased that this agreement supports both the Ethiopian specialty coffee industry and the farmers and their communities that produce these fine coffees while allowing us to bring them to our customers around the world.”

Getachew Mengistie, head of the Ethiopian Intellectual Property Office said: “This agreement provides cause to be very optimistic about the future of the Ethiopian coffee industry.

“(It) marks an important milestone in our efforts to promote and protect Ethiopia’s specialty coffee designations.

“Having the commitment and support of Starbucks will help enhance the quality of Ethiopian fine coffees and improve the income of farmers and traders.”