TechnoServe-Initiated Partnership is Helping Thousands of Smallholder Coffee Farmers in Tanzania

ARUSHA, TANZANIA, NOVEMBER 30, 2006 — Starbucks CEO James Donald met with small-scale coffee farmers in Northern Tanzania today and was able to see first-hand how the international coffee roaster has positively impacted the lives of thousands of rural coffee producers.

Starbucks has tripled its orders from KILICAFE, a TechnoServe-assisted coffee association, in the last year— directly impacting the income of over 10,000 smallholder coffee producers. Donald thanked KILICAFE for its high-quality coffee and its partnership with Starbucks and said, "We are very proud of the product that we are buying from KILICAFE and we believe that in order to grow we must continue to partner with suppliers from around the world -- like KILICAFE".

KILICAFE is an association of 93 farmer business groups in the Arabica-producing northern and southern regions of Tanzania. Its goal is to promote the production and processing of high-quality specialty coffee in order to improve its direct access to international and local markets.

Adolph Kumburu, the Executive Director of KILICAFE, said: "We are pleased and honored with the business relationship that we have developed with Starbucks. We hope it will take the Tanzanian coffee industry, particularly smallholders, to the next level as we continue to progress together."

Kumburu also expressed his sincere gratitude to TechnoServe -- an international non-profit organization focused on the development of business in rural areas -- for originally arranging for Starbucks to cup KILICAFE coffees in 2003 and for its constant support as KILICAFE achieves its goals. He specifically pointed out TechnoServe's assistance in rolling out central pulperies (installed by over 50 farmer business groups since 2001) and a biodigestor that converts waste to energy.

TechnoServe Country Director Thomas Dixon commented: "KILICAFE is an example of an ideal TechnoServe client -- eager to adopt the new business skills and take advantage of the finance, technology and market links that TechnoServe provides to entrepreneurs in Tanzania and throughout the developing world. We could not have accomplished these results without the support of USAID, the Swiss Cooperation, and other generous donors."

Initiatives of this nature provide farmers access to valuable new markets, thereby boosting employment and economic growth. Partnerships, such as the one created between Starbucks and KILICAFE, have the potential to improve the lives of hundreds of thousands of families in Tanzania and elsewhere, improving living conditions and promoting further development.

About TechnoServe: TechnoServe helps entrepreneurial men and women in the developing world to build businesses that provide jobs, income and economic opportunity. Since its founding in 1968, the U.S.-based nonprofit has helped to create or improve more than 2,000 businesses, benefiting millions of people in 32 countries. TechnoServe is currently working to build and expand businesses in Mozambique, South Africa, Tanzania, Kenya, Swaziland, Uganda, Ghana, Madagascar, Rwanda, El Salvador, Honduras, Nicaragua, Guatemala, Peru, Colombia, Brazil, Côte d'Ivoire and India. TechnoServe was recognized as one of the world's "Outstanding Social Entrepreneurs" by the Schwab Foundation for Social Entrepreneurship.

For more information, please contact:
Thom Dixon, Country Director, TechnoServe/Tanzania Tel: + 255-27-254-4544; Email: thomas.dixon@tnstanzania.org

Luba Vangelova, Director of Marketing Communications, TechnoServe/Washington, DC Tel: +1 202-719-1302; Email: lvangelova@tns.org