Swiss Milk Producers Cut Production as US Tariffs Threaten Exports
Bern, Switzerland – Swiss milk producers are being asked too reduce production due to the threat of increased customs taxes imposed by the United states, impacting the lucrative cheese export market. The move aims to prevent a price drop for milk within Switzerland, according to reports from RTS.CH.
Jean-Philippe Yerly, a dairy farmer in Friborg who raises 250 cows to produce Gruyère AOP cheese – a popular export to the US – has been asked by industry representatives to decrease his output by 5%. “You have to plan, anticipate things a little adn avoid being in the middle of next year with too high stocks in the cellars. It would be a bad signal for sale,” Yerly stated.
While the US represents a relatively small portion of overall Swiss milk exports – approximately 3% – half of that 3% consists of AOP gruyère. Berthe Darras, coordinator at the Uniterre milk committee, noted that the majority of Swiss milk exports go to the European Union, questioning the extent of the current “panic.”
Exports of AOP Gruyère to the United States have already fallen by 15% in the frist half of the current semester. This decline, coupled with a general surplus in Swiss dairy production, is forcing producers to convert excess milk into cream and butter, largely for export to the Middle east.
The reduction in production will result in financial losses for farmers like Yerly, who estimates a shortfall of over 35,000 liters of milk due to selling several cows.
To mitigate the impact and maintain a stable price for producers, a special fund of 9.5 million francs will be utilized to offset the difference between the price paid to farmers and the lower global market value of butter. “butter, it can be easily stored and it is bought from peasants at a relatively high price. But on the world market, its value falls and it is this difference that we must assume,” explained Stefan Kohler, manager of Milk IP.
