Starbucks Buys Costa Rica Farm

Posted on 27 March, 2013 by Kirsten Kennedy

Following the tax scandal which plagued the business dealings of many big retail names earlier this year, it is hardly surprising that Starbucks is attempting to draw back consumers with a promise of greater quality and variety than ever before.

The coffee chain has already put its plan for optimum flavours in its beans into action by purchasing a 240 hectare farm in Costa Rica, from which it will develop and run a new global agronomy research and production centre.

The idea behind the substantial property buy is to discover which soil management processes will provide the optimum conditions for coffee bean growth, claims Starbucks in a statement to the press. With the land being located on the slopes of the Poas Volcano, the soil will be extremely fertile and thus provide a huge amount of produce for the investment.

Howard Schultz, Starbucks chief executive, believes that the purchase will allow the world’s premier coffee chain the ability to become a little more experimental with the flavours on offer.

He says; “It opens up an opportunity for Starbucks to innovate with proprietary coffee varietals that can support the development of future blends.”

However, diversifying flavours and blends is not the only target Starbucks have achieved in the acquisition of the farmland. The company has publically stated a desire to ethically source “100 per cent of its coffee by 2015”, and has even established its own $70 million ethical farming programme in order to establish security for the coffee farmers it trades with.

In fact, the farm was purchased through this same scheme, and will now work in partnership with the farmer support centre Starbucks established in Costa Rica back in 2004.

While the deal will not be officially finalised until May, it is known that the purchase will be made through a subsidiary branch of Starbucks Coffee Trading Company. However all other aspects of the terms of transaction, including the amount Starbucks will pay for the farm and other details such as employment conditions and creation, have been kept closely under wraps for the time being.

Peter Seligmanns, chief executive of Conservation International, believes that Starbucks’ involvement in the community will allow for greater growth and profits for farmers.

He says; “The opportunity this continued investment brings will ensure the most innovative resources are brought to bear for sustainability and resilience across all farming communities.”

Do you think Starbucks has the interests of the local farming community in mind with this purchase and further support of the farmer support centre, or is this simply a means of glossing over the tax scandal which damaged its name considerably in the UK?




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