Due to low prices: farmers attack Migros’ dairy subsidiary Elsa

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The Swiss Fair Markets Association (FMS) has been running a registry office for farmers since the beginning of the month. There was more and more information received about a Migros subsidiary: It seems that Elsa Group wants to lower milk prices this month. And 1.5 to 2 centimeters per liter. This especially bothers the farmers.

“A possible discount not only increases the economic pressure on farmers in our country, but is also inappropriate,” FMS President and Managing Director Stefan Flückiger (63) said in a statement.

Problem: milk suppliers are economically dependent on Elsa and Migros. “They are committed to a fair working relationship,” Flückiger continues. According to FMS, Migros, together with Elsa, controls 40 percent of the milk market.

unacceptable for farmers

Inflation – particularly high energy prices – is putting pressure on farmers’ costs. Flückiger therefore believes that a fall in milk prices will not have economic consequences for dairy producers.

The association even suspects market abuse: FMS argues that a unilateral cut in payments to farmers for their milk could amount to market abuse within the meaning of Article 7 of the Cartel Act. About 160 million liters less milk is produced each year compared to 2014. Therefore, higher sales cannot justify a price cut.

But Elsa pays a high price

Demands from Migros are clear: The retailer should “stop the planned price reduction as soon as possible”. In the future, adjustments to terms and conditions will be negotiated in a fair dialogue. FMS will follow up and initiate political and legal corrective actions if necessary.

When asked by Blick, Migros says the price is relative to the regular price model. It’s all about B milk, anyway: the milk used domestically for butter and abroad for skimmed milk powder. The price of milk A is set quarterly and has been the same for several quarters. So the price of a liter of milk in the shop will not change.

“Elsa is currently paying one of the highest milk prices in Switzerland. Beginning in July, Elsa also had to make market cuts. Such things are common in the industry,” says a Migros spokesperson. However, prices are expected to rise again from August onwards. Due to the huge price difference between Switzerland and Europe, withdrawals from the market are a big issue in the entire industry this year.

Source :Blick