The surprising answer
Who makes more money from coffee: Africa, where much of the world’s coffee is grown, or Switzerland, a country that doesn’t grow a single coffee bean?
At first glance, the answer seems obvious.
Africa is home to some of the world’s most important coffee-producing countries, including Uganda, Ethiopia, Kenya, Tanzania, Rwanda, Burundi, and others. Millions of farmers depend on coffee for their livelihoods.
Switzerland has no coffee farms.
Yet there is a strong case that Switzerland captures more value from coffee than the entire African continent.
And that tells us something important about how the global coffee industry works.
A tale of two very different places
Let’s start with some perspective.
Africa:
- Population: approximately 1.5 billion people
- Land area: approximately 30 million square kilometers
- Home to many of the world’s coffee-producing countries
Switzerland:
- Population: approximately 9 million people
- Land area: approximately 41,000 square kilometers
- Produces no coffee
Africa is roughly 170 times more populous than Switzerland and more than 700 times larger in land area.
Yet when it comes to coffee, size is not what matters most.
What matters is where value is created and captured.
The coffee value chain
Coffee passes through many stages before reaching consumers.
- Farming
- Processing
- Exporting
- Trading
- Roasting
- Packaging
- Branding
- Distribution
- Retail
The further coffee moves along this chain, the more value is typically added.
Most coffee-producing countries participate heavily in the early stages.
Most of the profits are generated in the later stages.
This is where Switzerland has built a remarkable position.
Why Switzerland earns so much from coffee
Switzerland is one of the world’s leading coffee hubs.
According to the Swiss Coffee Trade Association, six of the world’s largest coffee traders are based in Switzerland, and Swiss trading houses handle more than 50% of globally traded coffee.
The country is also one of the world’s largest coffee exporters by value despite growing no coffee itself.
Swiss coffee exports include:
- Roasted coffee
- Instant coffee
- Coffee capsules
- Premium branded coffee products
Switzerland is also home to some of the coffee industry’s most influential companies.
Among them is Nestlé, owner of Nespresso, one of the world’s most successful premium coffee brands.
Coffee machine manufacturers and technology companies such as Eversys, Thermoplan, Schaerer and Bühler Group generate additional value through equipment, engineering, and services.
In other words, Switzerland earns money not only from coffee itself but also from the systems that process, roast, package, and serve coffee.
Africa grows coffee. But where does the value go?
Africa plays a vital role in global coffee production.
Countries such as Uganda and Ethiopia have become major coffee exporters.
Uganda’s coffee exports recently exceeded $1.5 billion annually, while Ethiopia’s coffee exports have reached similar levels.
These are significant achievements.
However, most African coffee is still exported as green coffee beans.
That means much of the value creation happens elsewhere.
According to the International Coffee Organization (ICO), high-income economies account for more than 95% of global roasted coffee exports.
Historically, only a small percentage of African coffee exports have been processed products such as roasted or instant coffee.
As a result, African countries capture only a fraction of the final value consumers pay.
A bag of coffee sold in Europe or North America may pass through numerous stages after leaving Africa. Each stage creates jobs, tax revenue, expertise, and profits.
Most of those benefits currently accrue outside coffee-producing countries.
The bigger issue: value addition
This discussion is not really about Switzerland.
It is about value addition.
For decades, many developing economies have exported raw materials and imported finished products.
Coffee is one of the clearest examples.
The challenge is not that Africa grows coffee.
The challenge is that Africa often exports coffee before the most valuable steps occur.
Roasting, packaging, branding, retail, logistics, technology, and equipment manufacturing are where much of the value is captured.
Countries that own these activities tend to generate more income from the same coffee bean.
What would happen if Africa captured more value?
Imagine if more coffee were:
- Roasted in Africa
- Packaged in Africa
- Branded in Africa
- Exported directly to consumers and businesses
- Served through African-owned global coffee brands
The result would not simply be higher export earnings.
It could create:
- More manufacturing jobs
- More tax revenue
- More skilled employment
- Stronger local businesses
- Greater economic resilience
The goal is not to stop exporting coffee.
The goal is to export more value.
Coffee justice is about more than price
Many conversations about sustainability focus on paying farmers more.
That matters.
But it is only part of the solution.
A coffee industry that remains dependent on exporting raw materials will continue to leave much of the value elsewhere.
Long-term change requires coffee-producing countries to participate more fully across the value chain.
That means investing in roasting, branding, distribution, technology, skills, and market access.
It means moving from being suppliers of raw materials to owners of finished products.
So who makes more money from coffee?
Africa grows far more coffee than Switzerland.
There is no question about that.
But when we look at the entire coffee value chain—trading, roasting, soluble coffee, capsules, branding, equipment, and services—Switzerland likely captures more economic value.
That is not because Switzerland grows coffee.
It is because Switzerland owns more of what happens after the harvest.
The future of coffee-producing countries may depend less on growing more coffee and more on capturing more of the value created from every bean.
Sources
- International Coffee Organization (ICO), Coffee Development Report
- International Coffee Organization, African Coffee Sector Report
- European Coffee Federation, European Coffee Report
- Swiss Coffee Trade Association
- Observatory of Economic Complexity (OEC)
- Nestlé Annual Review
- University of St. Gallen research on the Swiss coffee sector