Switzerland is a global powerhouse in the commodities market, despite its geographical size. With over 900 companies concentrated in cities like Geneva, Zug, Lugano… Swiss has created one of the world’s most significant trading hubs. These entities, specializing in a diverse range of commodities from oils, fuels to metals, are not only pivotal to the Swiss economy but also play a very important role in the global supply chains of these goods. The Swiss commodities market is born in the 19th-century, pioneers like Henri Nestlé, setting the stage for a rich trading tradition. This tradition was further enriched by key figures and entities such as Salomon Volkart, André & Cie, Cargill, and Alcoa. These contributors played instrumental roles in establishing Geneva as a key center for international commodities trading, marking a significant evolution from its early days to a major global player.
Switzerland is recognized as a leader in the trading of sugar, cotton, oilseed, coffee, and cereals. Notably, the country has a dominant share in the trading of oil, metals, and agricultural products, often facilitated by Swiss-based companies without the commodities ever physically reaching Switzerland. This unique aspect underscores Switzerland’s strategic importance in the global trading ecosystem.
The trading sector is a contributor to the Swiss economy, employing around 35,000 individuals in the country and accounting for approximately 4% of the Swiss GDP. The concentration of trading companies in regions underscores the role of major players like Vitol, Glencore, Gunvor, Cargill, and Mercuria, highlighting the sector’s economic significance. Despite its economic importance, the sector faces criticisms concerning transparency, money laundering, and human rights issues, particularly with commodities sourced from politically unstable regions. Switzerland has responded with legislative measures aimed at promoting environmental sustainability, fair working conditions, and preventing corruption. Initiatives like the Swiss Better Gold Initiative exemplify Switzerland’s commitment to global reform efforts.
Recent global events, such as the Ukraine war, have impacted the Swiss commodity market, with a real decline in trading volumes and shifts in global trading. Geopolitical tensions and sanctions against Russia have engaged a reevaluation of trading hubs, leading companies to move operations to markets less affected by sanctions, like the United Arab Emirates.
In 2021, the Swiss commodities trading sector comprised 966 companies employing approximately 10,300 people, mainly in the cantons of Geneva and Zug. These companies, supported by related activities like financing, certification, and transportation, underscore the dynamic nature of the Swiss trading sector. The sector’s structure has seen small changes since 2017, with a 2.3% increase in the number of companies and a 1.4% growth in employment from the previous year, indicating a resilient and growing industry amidst global challenges. One remarkable value is the commodity trading value pools who has grown significantly during the last years.
Fuel trading remains a predominant activity, engaged in by 30.7% of the companies and accounting for 32.4% of the employment. Trading in minerals and metals also plays a critical role, showcasing the diversity of Switzerland’s commodities market. The sector’s employment dynamics reflect its adaptability and resilience, with significant growth in areas like food products trading, highlighting the evolving nature of the market.
The distribution of commodities trading companies is highly concentrated in a few cantons, with over 80% located in Geneva, Zug, Tessin, Vaud, and Zurich. This territorial polarization has remained stable, with each canton developing unique characteristics that influence employment trends and sector dynamics. The evolution of employment in these hubs reflects broader economic trends, with significant growth in Zug and shifts in the composition of multinational and independent traders.
Valentin Parisot, Albert Troussard