swiss dairy farmers are bracing for critically important financial hardship as milk prices are set to fall beginning february 1st, potentially threatening the livelihoods of producers across the country. The price decrease, amounting to roughly four centimes per kilogram, comes as milk production surges-increasing by approximately 10%-and processing facilities reach capacity. This confluence of factors has led to a challenging outlook for the Swiss dairy industry, with farmers already seeking innovative solutions to remain viable amidst the downturn.
Swiss dairy farmers are facing a deepening crisis as milk prices decline, with some producers bracing for reduced payments starting February 1. The price drop, amounting to roughly four cents per kilogram of milk, threatens the viability of numerous farms across the country.
The price reduction stems from a surge in milk production, exceeding last year’s levels by approximately 10%. According to the Swiss Milk Producers Federation, output is projected to rise from 3.2 billion kilograms in 2023 to 3.4 billion kilograms in 2025.
“Lowering prices is never an easy decision. We opted to set a stable price, albeit lower than previously, to provide producers and milk buyers with a clear outlook for the year,” explained Boris Beuret, president of the Swiss Milk Producers Federation, on Friday.
Processing Capacity Reached Its Limits
The challenges facing the Swiss dairy sector extend beyond oversupply. a statement from the Interprofession du Lait indicates that milk processing facilities are operating at full capacity, exacerbating the surplus. This situation highlights the infrastructure constraints within the Swiss dairy industry.
Daniel Studer, a milk producer in Lugnez, Ajoie (JU) and a member of the Mooh board – representing 3,600 producers – emphasized the urgent need for a solution. He believes the excess milk must be exported, “unfortunately, even at a loss.”
Farmers Seek Survival Strategies
The price decline is hitting producers hard. In Montagne-de-Moutier (JU), Jenna Kohler, a dairy farmer, anticipates receiving only 50 cents per kilogram of milk starting February 1, a level she describes as “catastrophic.”
“Currently, we are producing at a loss, and if milk prices fall further, it will become unsustainable. We’ll be forced to invest our own money just to keep going. Right now, we’re working just to break even; it would be better to stop than to lose money,” Kohler stated.
In response, Kohler is exploring alternative sales channels. She recently began selling her milk directly to consumers at a gas station convenience store, where a liter bottle is priced at 1 franc. “It’s going well! We’re receiving a lot of support. People know where to find the outlet in Moutier and are coming directly here,” she said. While a small glimmer of hope, the coming months are expected to be very challenging for the Swiss dairy sector as a whole. The move to direct sales demonstrates the resourcefulness of farmers in adapting to difficult market conditions.
Sujet TV: Daniel Bachmann.
Adaptation web: Miroslav Mares
