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U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT
PRESS RELEASE
WASHINGTON, DC 20523
PRESS OFFICE
http://www.usaid.gov
(202) 712-4320
2002-137
CORRECTED VERSION
December 9, 2002Contact: USAID Press Office
Washington, DC - The Administrator of the U.S. Agency for International Development (USAID) Andrew S. Natsios and Green Mountain Coffee Roasters President and CEO Robert Stiller today signed a Memorandum of Understanding (MOU) to establish an alliance to assist coffee producing countries that have been affected by the sharp fall of coffee prices in global markets. The goal of the USAID-Green Mountain coffee alliance is to mitigate the crisis by supporting the development of small- and medium-scale coffee systems that are environmentally, socially, and economically sustainable. This, in turn, will help to ensure improved livelihoods and incomes for coffee farmers and their communities, while maintaining a reliable supply of coffee in the range of qualities demanded by consumers.
"The oversupply of coffee on world markets has driven prices to historic lows, causing great hardship to coffee producers and workers, particularly in Central America and east Africa. The Memorandum of Understanding that USAID is signing with Green Mountain Coffee Roasters will help us make a real difference in the lives of these coffee producers and workers. In so doing, Green Mountain is demonstrating that it is both a leader in the coffee industry and an outstanding example of American corporate commitment to public service," said Administrator Natsios.
The current coffee crisis has led to the loss of livelihoods, social imbalances, accelerated migration to urban areas and instability. This phenomenon is most apparent in Central America, the Caribbean and East Africa, where economies are heavily dependent on coffee. For instance, the Central American countries have experienced a drop in coffee export earnings of $1 billion over the past two years.
The Bush Administration has responded to the current crisis by leveraging resources (knowledge, markets, investment) through partnerships with allies in the coffee industry, non-governmental organizations, local producer groups, donors and financial institutions. USAID is supporting activities in the coffee sector in many countries throughout the world. For example in fiscal year 2002, USAID initiated two major programs in Central America ($8 million) and Colombia ($7 million) to assist producers increase the value of their coffee and enable new business start-ups that will improve the rural economy.
Green Mountain Coffee Roasters has an excellent reputation in the industry for its commitment to corporate social responsibility. The company is committed to improving the quality of life in coffee-producing countries by supporting projects that foster self-sufficiency and individual empowerment. These programs also help insure that a stable supply of quality coffees will be available to satisfy consumer demand.
USAID's relationship with Green Mountain has developed within the context of the Global Development Alliance (GDA), a new initiative and business model to extend USAID's reach and effectiveness by working more closely with private companies, foundations and others. GDA provides a vehicle for USAID to combine forces with coffee companies like Green Mountain; to develop public-private alliances that take advantage of the relative strengths of each party, thus greatly enhancing the delivery of assistance and positive impact for small coffee producers in Central America, East Africa and elsewhere.
U.S. Agency for International Development is the government agency that has provided humanitarian assistance and economic development worldwide for more than 40 years.
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