Increase of 1000 tons of the customs quota of butter
High demand for dairy products since 2020 has led to a shortage of edible fat in Switzerland and the FOAG has taken corrective action
On June 18, 2021, the Federal Office of Agriculture decided to again increase the partial customs quota for butter imports in 2021 by 1,000 tons, as requested by the Dairy Interprofession.
The high demand for dairy products since 2020 has caused a shortage of butter on the Swiss market.
The increase of 1,000 tonnes will help to guarantee supply possibly until the end of the year.
The measures taken by the Federal Council to contain the coronavirus crisis continue to have an impact on the demand for butter in the Swiss retail trade at a high level of sales.
Therefore, the supply of indigenous butter will again be too low to meet this year.
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Value added in cheese production is higher
Because the value added in cheese production is higher than in butter and skim milk product production, much of the slightly increasing milk production will continue to be processed into cheese.
Based on its analysis, the chain believes that indigenous butter will begin to become scarce in the marketplace no earlier than fall 2021.
However, the second release of imports must also occur well before that happens so that traders and processors will still have indigenous butter to sell or process.
After reviewing the statistics for April, the FOAG has decided to comply with the request of the Milk Interprofession to increase the partial customs quota “Butter and other fats derived from milk” by 1,000 tons.
The partial customs quota will be auctioned immediately, so that imports can take place from the beginning of July 2021.
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Poor forage production due to cold spring weather
Due to last spring’s cold and wet weather, forage production on pastures was low and cows produced less milk than expected.
The volume of imports is relatively low compared to consumption.
Given an annual consumption of 40,000 tons of butter, the extra 1,000 tons are in fact enough to meet the needs of less than ten days.
The Milk Interprofessional Commission, which deals with butter imports, will continue to follow developments in this area.
Should the situation on the dairy market remain tense, it is possible that applications for an increase in the partial customs quota for butter will be submitted again.
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