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A new report from the European Coffee Federation (ECF) has highlighted the economic role of coffee across Europe and its links with producing countries.
The report, prepared by Europe Economics, found that coffee-related activities generate €84.4 billion in direct gross value added across the 27 member countries of the European Union and support 1.5 million direct full-time equivalent jobs. When indirect and induced effects are included, the sector supports 3.8 million jobs.
More than 87% of direct coffee-related jobs are in the horeca sector, underlining coffee’s role in cafés, restaurants, hotels and other local businesses across Europe. The report also found that every €1 of direct coffee output is associated with around €2.60 of total output once wider economic effects are included.
Europe is described in the report as the world’s largest coffee market, accounting for around a quarter of global coffee consumption. Because coffee is not grown commercially in Europe, the ECF said the sector depends on close links between producing countries and destination markets.
Globally, around 12.5 million farming households depend on coffee for their livelihoods, with smallholders accounting for about 85% of this total.
The report notes that European demand plays an important role for several producing economies. While Burundi and Uganda represent relatively small shares of EU+ coffee imports – referring to the EU27 plus the UK, Norway and Switzerland – the EU+ market absorbs around 91% of Burundi’s coffee exports and approximately 56% of Uganda’s.
Eileen Gordon-Laity, secretary general of the European Coffee Federation, said the findings show coffee is “much more” than an agricultural commodity or daily consumer product, describing it as a shared value chain connecting farming families in producing countries with businesses, workers and consumers across Europe.
The report also estimates that coffee-related activities generate €65 billion in sales and labour tax revenues across the EU27.
Andrew Lilico, executive director and principal at Europe Economics, said the findings provide an evidence-based picture of the employment and economic activity supported throughout the coffee value chain.
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