Milk market in Switzerland

Earlier Report Observations

The Swiss milk market experienced a decline in physical volume from 3.9 million tons in 2018 to 3.8 million tons in 2019, influenced by strong economic pressure on dairy farmers leading to sector restructuring and the cessation of export subsidies. The launch of the 'green carpet' sector standard for sustainably produced milk under the swissmilk green brand sought to add value to Swiss production. The COVID-19 pandemic in 2020 altered market conditions, but a 5.1% increase in organic milk output helped maintain total market volume around 3.8 million tons.

Starting in 2021, farm-gate milk prices rose significantly, reaching 75.34 cents/kg in 2022 due to higher production costs and market conditions. This price surge propelled the market's monetary value to 13.7 billion dollars in 2022, even as the physical volume stabilized near 3.8 million tons. Increased consumption of cheese and dairy products compensated for lower drinking milk demand, while the market for plant-based milk alternatives expanded by 79% between 2017 and 2021. By 2023, structural challenges including a continued reduction in the dairy herd and stagnant producer prices despite rising costs contributed to a decrease in market value to 10.8 billion dollars.

Regulatory developments, such as Bio Suisse's stricter organic feed rules limiting concentrate share for ruminants to 5%, and a rise in milk powder imports under inward processing arrangements, affected domestic production patterns. The dairy sector achieved a positive trade balance in volume terms during 2022, supported by stronger cheese exports to the European Union.

Production milk in Switzerland

In kind, 2017-2020, K t

Top producers of milk, 2017-2020

World map of production of milk, 2017-2020

Switzerland's milk production declined for the second consecutive year. In 2020, production reached 3 810 thousand tonnes, remaining nearly unchanged from 2019. Over the period from 2017 to 2020, production decreased by 2.8%, with an average annual decline of 1.0%. The highest production level was recorded in 2018 at 3 943 thousand tonnes, which represented a modest increase of 0.5% from the previous year. The most significant decline occurred in 2019, when production fell by 3.1%.

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

In value, 2017-2020, M $ US

Switzerland's milk production value increased for the second consecutive year. In 2020, the output was valued at 10 646 million US dollars, marking a robust year-on-year growth of 11.8%. The lowest value during this period was recorded in 2018 at 8 822 million US dollars, which represented a decline of 16.9% from the previous year.

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

Exports milk from Switzerland

Exports in kind, t

After two years of growth, Switzerland's milk exports declined in 2020. Export volumes fell to 13 928 tonnes, down by 20.7% compared to the previous year. Over the period from 2017 to 2020, exports decreased by 7.1%, equating to an average annual decline of 2.4%. The peak export volume was recorded in 2019 at 17 555 tonnes, following an increase of 11.9% in 2018.

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

From 2017 to 2020, China, Russia, and Hong Kong formed the core group of markets for Switzerland's milk exports in volume terms. China accounted for 32.9% of exports, Russia for 13.4%, and Hong Kong for 7.6%. Together, these three markets represented 53.8% 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 export value reached 38 925 thousand US dollars, representing a significant decline of 11.0% from the previous year. Over the period from 2017 to 2020, export value decreased by 4.1%, with an average annual decline of 1.4%. The lowest value was recorded in 2018 at 37 525 thousand US dollars, while the peak occurred in 2019 at 43 733 thousand US dollars, following a substantial increase of 16.5% that year.

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

From 2017 to 2020, China, Russia, and Italy were the main markets for Switzerland's milk exports in value terms. China accounted for 29.7% of exports, Russia for 13.9%, and Italy for 9.6%. Collectively, these three markets represented 53.2% of total export flows.

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 to Switzerland

Imports in kind, t

Switzerland's milk imports increased for the second consecutive year in 2020. Import volumes rose to 30 653 tonnes, up by 10.0% compared to the previous year. Over the period from 2017 to 2020, imports grew by 4.8%, with an average annual increase of 1.6%. The lowest import volume was recorded in 2018 at 27 763 tonnes, which represented a decline of 5.0% from the previous year.

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

From 2017 to 2020, France consistently dominated Switzerland's milk imports in volume terms, accounting for 81.8% of total imports. This indicates a high concentration on the French market, with the remaining share distributed among other countries.

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

In 2020, Switzerland's milk import value was recorded at 35 254 thousand US dollars, showing a strong year-on-year increase of 19.8%. Over the period from 2017 to 2020, import value grew by 15.9%, with an average annual increase of 5.0%. The lowest value was recorded in 2019 at 29 432 thousand US dollars, which represented a decline of 3.3% from the previous year.

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

From 2017 to 2020, three main markets—France, Italy, and Germany—together absorbed 80.3% of Switzerland's total milk import value.

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

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