Milk and cream market in Switzerland

Earlier Report Observations

The Swiss milk and cream market volume decreased from 4.8 million tons in 2018 to 4.6 million tons by 2020. This initial decline coincided with the introduction of stricter industry standards like 'swissmilk green,' which raised production requirements, and the continuation of milk segmentation for price control. State milk allowances and a new three-tier fund regulation system implemented in 2020 helped stabilize producer incomes and cushion against surplus situations, contributing to the market's stabilization after the first drop.

Market volume continued to decline in 2021 and 2022, reaching 4.5 million tons in 2022. This period saw the expansion of market stabilization funds and the introduction of an annual price and volume ceiling for C-milk, which limited output in this lower-value segment. Concurrently, increased EU-Switzerland negotiations for market access and new labeling rules for A- and B-milk began reshaping export prospects and domestic market conditions.

In 2023, the market recovered to 4.6 million tons. This growth was supported by a new organic milk price model from aaremilch that incentivized higher production, alongside increased export subsidies for the food industry to counter rising cocoa prices. Preparations for a scheduled price reduction in the high-quality A-segment also indicated industry adaptation to manage expected supply surpluses.

Production milk and cream in Switzerland

In kind, 2017-2020, K t

From 2017 to 2020, Switzerland maintained the 28th position globally in terms of milk and cream production volume.

Top producers of milk and cream, 2017-2020

World map of production of milk and cream, 2017-2020

In 2020, Switzerland produced 4 619 K t of milk and cream, showing minimal change compared to 2019. The lowest production level was recorded in 2019 at 4 611 K t, while the peak occurred in 2018 with 4 747 K t. The largest decline was observed in 2019 at 2.9%, and the highest increase was in 2018 at 1.0%.

Annual dynamics of production in Switzerland in kind, 2017-2020, K t

In value, 2017-2020, M $ US

In 2020, the output of milk and cream in Switzerland was valued at 10 147 M $ US, representing a 9.4% increase from 2019. Over the period from 2017 to 2020, production grew by 11.5%, with a compound annual growth rate (CAGR) of 3.7%. The most significant decline was in 2019 at 2.6%.

Annual dynamics of production in Switzerland in value, 2017-2020, M $ US

Exports milk and cream from Switzerland

Exports in kind, t

In 2020, milk and cream exports from Switzerland reached 4 442 t, down by 8.4% year-over-year. Between 2017 and 2020, exports decreased by 24.1%, equating to an annualized rate of 8.8%. The lowest export volume was in 2018 at 4 358 t, with the largest decline that year at 25.6%, while the highest increase was in 2019 at 11.3%.

Annual dynamics of product's exports from Switzerland in kind, 2017-2020, t

From 2017 to 2020, Hong Kong, China, and Italy were the top contributors to Switzerland's milk and cream exports in kind, accounting for 24.6%, 24.4%, and 20.1% of exports, respectively. Together, they made up 69.0% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Switzerland in kind, 2017-2020

Exports in value, K $ US

In 2020, Switzerland's milk and cream export value amounted to 9 757 K $ US, showing negligible variation compared to 2019. Between 2017 and 2020, exports decreased by 13.9%, with an annualized rate of 4.9%. The lowest value was recorded in 2018 at 8 742 K $ US, with the largest decline that year at 22.9%, and the highest increase in 2019 at 11.6%.

Annual dynamics of product's exports from Switzerland in value, 2017-2020, K $ US

From 2017 to 2020, Italy, France, and China were the main destinations for Switzerland's milk and cream exports in value terms, accounting for 38.7%, 14.7%, and 12.6% of exports, respectively. Together, they represented 66.0% of total export value.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Switzerland in value, 2017-2020

Imports milk and cream to Switzerland

Imports in kind, t

Milk and cream imports into Switzerland increased for the second consecutive year, reaching 26 774 t in 2020, up by 4.9% year-over-year. The lowest import volume was in 2018 at 25 199 t, with the largest decline that year at 5.6%.

Annual dynamics of product's imports to Switzerland in kind, 2017-2020, t

Throughout 2017 to 2020, France dominated Switzerland's milk and cream imports in kind, accounting for 88.4% of the total, while the remaining volume was distributed among many other countries with smaller individual shares.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Switzerland in kind, 2017-2020

Imports in value, K $ US

After a two-year rise, Switzerland's milk and cream import value declined in 2020, totaling 19 828 K $ US, down by 2.5% from the previous year. The peak value was in 2019 at 20 331 K $ US, with the largest increase that year at 3.9%.

Annual dynamics of product's imports to Switzerland in value, 2017-2020, K $ US

From 2017 to 2020, France and Italy were the leading markets for Switzerland's milk and cream imports in value terms, together accounting for 89.1% of total imports, while the rest was spread across a wide range of other countries.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Switzerland in value, 2017-2020