US tariffs have disrupted the Swiss dairy market. To avoid a price collapse, farmers are having to reduce their herds.

The Swiss dairy market is unbalanced, the "NZZ am Sonntag" revealed this Sunday, October 5. The reason: US tariffs on Swiss cheese and chocolate have reduced exports, particularly of Gruyère, and thus the demand for Swiss raw milk. At the same time, many farmers produced nearly 5% more milk than usual this year. This is thanks to the harvest of prime fodder due to favorable weather conditions. This has had a negative impact on producers: the price of milk has fallen – up to 30 cents less per liter for some. This is why the Interprofessional Dairy Association (IP Lait) has just issued an appeal, inviting its members to reduce their production in its latest monthly report.

Avoiding price collapse

The goal is to "avoid a price collapse," says National Councilor Martin Hübscher (SVP/ZH), president of the Mooh cooperative, which brings together 3,500 Swiss milk producers. He himself has already had to send four of his cows to the slaughterhouse. Just like Christian Marro, a farmer in Pierrafortscha (FR), who had to slaughter ten of his 110 cows, even though they were in good health.

Temporary support measures

Switzerland has approximately 500,000 dairy cows; 85,000 are slaughtered in "normal" years, reports the "NZZ am Sonntag." However, to reduce the current 5% milk surplus, an additional 25,000 would have to be slaughtered this year, according to IP Lait estimates. However, the industry hopes to avoid this through temporary export support measures. The decision will be made by December depending on the market situation, officials indicate. To limit slaughter, IP Lait has already released an emergency fund of 11 million francs to support the export of cream and butter at competitive prices on the world market for nine months. The objective: to sell off part of the milk surplus and stabilize the income of Swiss producers.

It makes my stomach ache

Fribourg dairy farmer Christian Marro says he feels "sick" about having to part with healthy cows. Despite a reasonable price of 2,800 francs per animal, he expects an annual loss of around 12,000 francs. Unlike others, he is not allowed to sell his milk on the international market, as he is bound by an exclusive delivery contract with the Gruyère label. If he were to sell his milk elsewhere, it would lead to a drop in the price of this cheese, which would not be appreciated by other producers. His only option is therefore to reduce his herd.