The importance of coffee in the economy and in job creation

The economic, social, and sustainable strength of Brazilian coffee

Source: acontece no agro

Originating in Ethiopia, coffee arrived in Brazil in 1727, in the state of Pará, with seeds and seedlings of the Coffea arabica species brought by Sergeant-Major Francisco de Mello Palheta, who was on a diplomatic mission to French Guiana. From there, cultivation expanded rapidly throughout Brazilian territory. During the Imperial Period (1822 to 1889), when Brazil was governed by a constitutional monarchy, coffee experienced its first great phase, with Rio de Janeiro as the central production hub, becoming an engine of economic growth through large monoculture plantations. In these plantations, the predominant workforce was enslaved, and the country's economic development often came at the cost of enormous social inequalities¹.

The scenario changed with the Abolition of slavery (1888), and from 1890 onwards, a period marked by the massive arrival of European immigrants, who comprised more than three-quarters of Brazilian immigration, and by technological advances in the drying and hulling stages, which boosted the nascent coffee industry². Social dynamics showed the beginning of a certain community organization: neighbors and small producers frequently helped each other, sharing techniques, inputs, and labor, establishing collaborative practices that characterize part of Brazilian family farming.

Throughout the 20th century, coffee underwent shifts and challenges: the state of Paraná became a protagonist, accounting for more than 52% of national production and 28% of world production, until it was devastated by frosts, opening space for Minas Gerais to consolidate itself as the main producer of Arabica³. In Espírito Santo, after crises and eradication programs, producers reinvented themselves with the cultivation of conilon, a resilient variety of the Coffea canephora species adapted to the local climate, which is now essential to the state's coffee identity.

Today, two main coffee species are cultivated in Brazil: Arabica (Coffea arabica) and Canephora (Coffea canephora), known as Conilon or Robusta. Arabica is recognized for its smoother, more aromatic and complex flavors, and is grown in higher altitude regions with mild climates, such as Minas Gerais, São Paulo, Paraná, Bahia (Chapada Diamantina), northeastern states, and even Mato Grosso. Canephora, on the other hand, has a higher caffeine content, intense body, and more pronounced flavor, adapting better to warmer climates and lower altitudes, predominating in Espírito Santo, Rondônia, Bahia, and Amazonas. Canephora is commercially used in coffee blends worldwide, and is also widely used in the beverage, pharmaceutical, and cosmetics industries.

Currently, MG (51.2%), ES (24.7%), SP (9.6%), BA (7.5%), and RO (3.6%) concentrate approximately 97% of the national coffee production, with an estimated gross revenue of R$ 115.27 billion⁴, demonstrating the historical and economic strength of this crop. Throughout three centuries of coffee cultivation in Brazil, coffee has not only structured a production chain but has also populated cities, shaped communities, habits, and social structures, giving rise to cooperative practices that are Brazil's trademark. Cooperativism is part of this history that consolidates the country as a world reference in sustainable production and diversity of sensory profiles, building a true "coffee culture" that unites tradition, innovation, and commitment to sustainability.

Coffees of Brazil

Brazil has consolidated its position as the world's largest producer and exporter of coffee, guaranteeing the supply of both the domestic and international markets. The evolution of productivity in the coffee sector reflects continuous investment in research, technology, and knowledge. Investments through Funcafé, the Coffee Economy Defense Fund⁵, created in 1987 to finance, modernize, and provide economic security to Brazilian coffee farming, have boosted innovation in coffee cultivation, the development of varieties more resistant to climate change, the adoption of modern technologies, increased planting density, and the implementation of new sustainable practices. As a consequence, even with the reduction in cultivated area, which decreased from 3 million hectares in 1989 to 2.25 million hectares in 2024 over 35 years, with 1.92 million hectares in production and 336,340 hectares in formation, production has remained balanced to meet growing global demand⁶. Currently, Brazil is responsible for approximately 40% of world production⁷.

According to the National Coffee Council (CNC) and the National Supply Company – Conab, total production in 2024 was approximately 54 million 60 kg bags. During the same period, the country exported 50,582,410 bags of coffee⁸, which reaffirms its position as the main global supplier and highlights the strategic importance of coffee farming.

Coffee production (60 kg bags) in Brazil over the last 10 years. Source: Conab, 2025

Coffee farming is present in 1,983 municipalities across 17 Brazilian states, significantly contributing to job creation, income generation, and territorial development. Approximately 330,000 producers and their families cultivate coffee; of these, 78% are family farmers⁹. The presence of coffee farming is directly associated with municipalities with high Human Development Indices (HDI), reflecting the economic and social dynamism generated by this production chain, which strengthens the permanence of families in the countryside, stimulates rural succession, and drives local development with inclusion and quality of life.

Quantifying the jobs generated by coffee farming in Brazil is a challenge, given the scope of the value chain, which begins even before the farm and extends to the point where coffee and its derivatives are made available to the consumer. The CNC, in close contact with all coffee cooperatives and associations in the country, 97 of which are linked to the National Organization of Brazilian Cooperatives (OCB), estimates that there are approximately 41,258 companies registered in the coffee sector in Brazil and in operation. Considering direct and indirect jobs, according to the CNC (National Coffee Council), the supply chain involves approximately 8.4 million people, including input suppliers, agricultural technicians, agronomists, and specialists in various areas such as sustainability, economics, information technology, and systems, as well as producers and their families, seasonal and permanent workers, cooperative and association workers, lawyers, auditors and quality certifiers, professionals in the equipment and machinery industry, professors and scientific researchers and rural extension institutions, processing and logistics professionals, foreign trade professionals, marketing, branding and retail professionals, baristas, consultants, and those providing customer service, not to mention current new occupations such as digital influencers and many others that emerge according to opportunity and need, composing a complex system that goes from the field to the cup. Thus, Brazil connects to the global market, showing that national coffee is not just a product produced on a large scale, but a social and economic force that transforms realities and promotes sustainable development on multiple fronts.

Força social: O protagonismo feminino e dos jovens no café

Brazilian women coffee growers are active participants in all stages, from production to marketing. They are present in the field, in farm governance and production monitoring; in marketing; in research institutions; in decision-making; in the representation of entities; and in the leadership of sector organizations. According to the latest IBGE census in Brazil, more than 40,000 agricultural establishments in Brazil are run by women, which corresponds to 13.2% of coffee businesses.11 This approach goes further; many young people who left the farm to study are returning and ensuring production. The new generation of coffee growers, successors, and young people have implemented innovation, technology, and a new mentality for the field. They are connected to global trends, concerned with putting sustainability into practice, traceability that brings them closer to consumers, changing the perception of Brazilian coffee to a high-quality product, and making known the most diverse varieties and their regions of origin, as well as valuing geographical indications and designations of origin. Thus, coffee farming remains a crop of opportunities and income generation at all stages of the chain.

Looking to the future

Brazil has long been, and still is, known for its large-scale production, but in the last 10 years and now it has sought recognition for quality, sustainability, and innovation. Producers are increasingly aware of the importance of practices that respect the environment, conserve natural resources, and guarantee the future of the next generations. An example of the integration between sustainability and production is the National Coffee Water Producer Program, which remunerates producers for the conservation of natural resources.

With an increasingly demanding consumer market attentive to sustainability practices, Brazil has rigorous legislation in both the environmental and labor fields. The Brazilian Forest Code, for example, establishes unique rules that oblige rural producers to maintain permanent preservation areas, protect water sources, and conserve a significant portion of their properties. This law, coupled with monitoring and surveillance via satellite imagery, gives Brazil a distinct position on the international stage, reinforcing its capacity to meet international requirements such as the European Union Deforestation Regulation (EUDR) and the Corporate Sustainability Due Diligence (CS3D), and consolidating its position as a reliable supplier of sustainable coffee. In addition to its rigorous environmental legislation, Brazil also stands out for its labor laws, which guarantee fundamental rights to rural and urban workers.

The economic power of coffee – The German case.

In 2024, Brazil reached a record by exporting 50.4 million 60 kg bags of coffee to a total of 116 countries. The 5 largest markets were the United States, Germany, Belgium, Italy, and Japan. The European Union as a bloc received 52.6% of the total.12 Coffee is positioned as a strategic product in the trade balance and in the Brazil-European Union relationship. Germany surpassed the United States and became the largest buyer of Brazilian coffee in August 2025, after the imposition of the American "tariff" on Brazil, which resulted in a sharp drop in exports to the US.

The case of Germany stands out here in terms of its potential for generating value and jobs in the global coffee chain. In 2024, Germany imported green coffee from Brazil worth €2.4 billion, representing 520,000 t13 (approximately 8.66 million bags). Germany's iconic port cities, Hamburg and Bremen, are home to major coffee roasting and processing companies such as Tchibo, JJ Darboren, and Jacobs Douwe Egberts (JDE). In the country, private label brands dominate the retail market. Tchibo (25%) and Jacobs Douwe Egberts (20%)14 are the two leading brands, mainly in the premium and mid-range segments. According to the German Coffee Association, the largest coffee roasters in Germany include Aldi, Dallmayr, JJ Darboren, Jacobs Douwe Egberts (JDE), Lidl, Melitta, Lavazza, and Tchibo. There are also around 900 smaller roasting and sales companies. The Hamburg-based Neumann Kaffee Gruppe (NKG) conglomerate has over 40 companies in 28 countries and more than 3,300 highly qualified employees working in the Export and Grinding, Import, Agriculture, Agents and Representative Offices, and Services sectors. The Probat company has been a leader in the production of coffee and food roasting machines since 1868.

Marketing and sales strategies vary among the major players. Tchibo, founded as a coffee roastery in Hamburg in 1949, now has 550 retail stores in Germany, generally located in city centers with high pedestrian traffic. Besides coffee from various countries, biscuits, and cakes, where Germans warm themselves during the cold winter at the coffee counter, the stores offer new promotional products every week, including electronics, clothing, and household goods, as well as coffee to go. The company employs 10,708 people and had revenues of around €3.2 billion in 2024. Tchibo also operates with this model in Austria, the Czech Republic, and Hungary.

The giant retailers Aldi, with an 8-10% market share, and Lidl, with a 10-12% market share in the coffee market, are very strong with their own brands in the cost-effective segment. Both insist on having their own local roasting facilities, which differentiates them from Brazilian supermarkets. Aldi Nord alone has 2,200 supermarkets in Germany, where it can even offer its coffee at a competitive price and offset the price by selling other products. The Munich-based roasting company Dallmayer, with a 10% market share, founded in 1700, processes 80,000 tons of coffee annually. Dallmayer specializes in supplying coffee to delicatessens, hotels, restaurants, bars, shops, and especially to coffee machines. Today, the company manages more than 100,000 coffee machines in Europe and employs 4,800 people. Melitta, with an 8% market share, inventor of the coffee filter, founded in 1908, sells coffee under various own brands, filters, and household products with an annual value of €2.15 billion. Large coffee shop chains such as McCafé (840 stores), Starbucks (158 stores), Segafredo (90 stores and 133 in gas stations), and Dunkin’ Donuts (>80 stores) deserve mention, as well as numerous coffee shops, cafes, bistros, bakeries, convenience stores, and automated coffee machines that serve consumers.

With a per capita consumption of 163 liters (5.4 kg)16, Germany is not among the top 10 global consumers, which are led by Scandinavian countries. However, in total, Germany is the largest coffee consumer in Europe. Preferences for how to enjoy the beverage vary between filtered coffee, capsules, latte, cappuccino, coffee with milk, espresso, double espresso, Eiskaffe, among others. Generally, consumption largely involves blends of coffees from various countries.

Over the last few years, there has been a trend towards demand for certified coffee (EU Organic, Rainforest Alliance, Fairtrade), blends of individual portions of instant coffee, some pre-dosed with sugar and powdered milk, instant coffee, and whole beans. In the 2000s, the "Third Wave Coffee" movement developed, referring to a coffee culture that understands coffee not only as a consumer good, but as a handcrafted product valuing origin, character, and quality.

Germany is one of the few countries that applies a specific tax on coffee. The coffee tax consists of €2.19 per kg for roasted coffee and €4.78 per kg for instant coffee. The tax must be paid by all companies that produce coffee or products containing coffee, or that import them from third countries into Germany and sell them within the taxable territory. This includes coffee roasters, importers, wholesalers, and retailers. With the coffee tax, the German state collects approximately €1 billion per year (2024) according to icinoticias. In addition to the coffee tax, a 7% VAT is payable on whole bean and ground coffee.

Expertise in Coffee Processing

The first documented coffee roasting plant in Germany was founded in 1820 by Xavier Plum in Aachen. Germany's leading position in coffee processing is based on a combination of historical industrial development, infrastructure, high technology, consumer culture, and international network due to its strategic geographic location. These factors make the country a key player in the global coffee value chain.

German expertise in processing and roasting positions the country as a significant exporter of soluble, decaffeinated, and roasted coffee. Total exports in 2023 reached an impressive USD 2.97 billion, destined for Poland, Switzerland, Italy, France, Russia, the Netherlands, Chechnya, Austria, Sweden, Bulgaria, Denmark, Greece, Croatia, Korea, the United Arab Emirates, and others. The total value of coffee imports was USD 4.06 billion in 2023.

Trade Balance: Coffee Germany

Estimating the economic value and jobs generated by the coffee supply chain in Germany is complex. The company Statistika reported that coffee purchases for home consumption will total approximately €6.41 billion in 2025. Revenue from coffee consumption outside the home is estimated at €14.41 billion in 2025, while combined revenue will reach €20.82 billion in 2025. However, these figures do not consider the thousands of jobs generated by the industry and service sectors related to coffee sales in stores, foreign trade, processing, advertising, research, sustainability initiatives, transportation, events and conferences, the production of coffee machines and accessories, by-products, project management, packaging and brand design and production, cross-selling, and tips in coffee shops.

Beyond its economic value, coffee strengthens social and cultural ties between nations. The "third wave coffee culture" has become an essential part of modern life, whether at Starbucks, Tchibo, or another charming coffee shop. Coffee transcends the scope of economics, as it provides a place for people to meet, a cozy atmosphere, a moment of comfort, and dialogue—elements that are priceless. Through sustainable development projects, engagement, valuing origin, and certification labels, the consumer can generate a positive impact through their consumption behavior.

Shall we have a coffee?

References and sources consulted: 1 ECCARDI, Fulvio; SANDALJ, Vicenzo. O café: ambiente e diversidade. Rio de Janeiro: Casa da Palavra, 2003. 256 p. 2 Consórcio Pesquisa Café. 3 Decreto nº 94.874/1987. 4 Companhia Nacional de Abastecimento – Conab. 5 Departamento de Agricultura dos Estados Unidos da América – USDA. 6 Conselho dos Exportadores de Café – Cecafé. 7 Conselho Nacional do Café – CNC. 8 Econodata. 9 ARZABE, Cristina et al. Mulheres dos cafés do Brasil. Brasília: Embrapa Café, 2018. 315 p. 10 Comex do Brasil. 11 Ministério de Alimentação e Agricultura da Alemanha (BMEL), 2025. 12 Deutscher Kaffeeverband; Mintel. 13 Mintel 14 Mordor Intelligence 15 Deutscher Kaffeeverband 16 Statistika – Coffee Market in Germany.