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Sunday 30 March 008

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Starbucks Changing The Way Costa Rican Farmers Grow Coffee — and Live
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Starbucks Changing The Way Costa Rican Farmers Grow Coffee — and Live
By Manuel Valdes

In 1993, a representative from a U.S. company called Starbucks visited Rodrigo Vargas' coffee farms in the highlands of central Costa Rica.

Vargas remembers chatting with her, giving her a tour of his coffee fields that covered the green hillsides in a checkerboard pattern and the mills that churned out millions of pounds of dried coffee a year. She took samples and said goodbye.

"I had never heard of [Starbucks] before in my life," Vargas recalls as he smokes a cigar and drinks a cup of coffee. He had just given a speech about the future of coffee in Costa Rica at an international conference in the country's capital of San José, about 15 miles south of his farm.

Vargas is one of the hundreds of farmers — large and small — in Costa Rica who have benefited from Starbucks' arrival after an influx of cheap beans from Brazil and Vietnam saturated the market and sent prices tumbling in the late 1990s, creating a crisis for coffee growers.

As Starbucks' presence grew in Costa Rica, Vargas' relationship with the Seattle specialty coffee-shop chain tightened. He replaced 25 percent of his coffee plants with better breeds of arabica beans to keep up with Starbucks' growing demand and quality standards.

By 1998, he sold 1.2 million pounds of coffee to Starbucks. In 2002, Vargas visited Seattle, met CEO Howard Schultz and sat courtside at a then-Schultz-owned Seattle Sonics basketball game.

This year, Vargas will sell 70 percent of the more than 7 million pounds of beans harvested on his farms to the company.

"Starbucks saved the coffee industry in Costa Rica," Vargas says.
 

 

 

 

 
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