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Markus Arn (49) stands among his sows in his barn in Suberg BE. His animals are valuable and precious to him. However, Migros is very expensive. The farmer and his 600+ animals feel abandoned by the orange giant. «Two years ago, Migros wanted to expand its purchasing volume from intellectual property farmers. “He stalled us for a long time during negotiations in the last few months and eventually even reduced the purchase amount,” says the pig farmer who works at Blick’s reception on his farm.
Arn is a member of the Porc IP-Suisse expert group, which wrote an open letter to Migros Supermarket AG regarding the short-term withdrawal. “We are very disappointed,” Arn writes on behalf of the other signatory farmers. “There is no need for short-term market dictates to the detriment of producers.”
Last year farmers were able to sell 700,000 pigs using the IP label. This means environmentally friendly and animal-friendly agriculture. In the current year 2024, Migros, the largest buyer of IP pork, suddenly wants to buy 40,000 fewer animals from farmers.
New piglets had been delivered to Arn the day before. These baby animals clearly show why pig breeders do not like what Migros does. The current pig cycle is already ongoing. «We are not a factory where you push a button and production takes place. The animals have already been born or the sows are pregnant. And now you can’t sell some of it for sticker price,” he says angrily.
Farmers charge a premium for IP pork so they can finance the higher costs of the standard. Currently this is 40 centimeters per kilo, in recent years the average has been 35 centimeters. However, according to Arn, 50 cents will be required for IP farmers to get paid.
When it comes to meat consumption, pigs are ahead of poultry on the menu of the Swiss population. In 2022, they were consuming 20.7 kilograms per person. But consumption is decreasing. In 2017, it was 22.2 kilograms per person. During the same period, total pork consumption in Switzerland fell by over 5,000 tonnes to 184,400 tonnes. But during the pandemic, the Swiss began to cook at home more often, and more and more pork was consumed in the store. Farmers increased production, resulting in overproduction in the spring of 2022 and 2023. “Even though there was no demand, Migros supported the farmers, took the animals from their hands and processed them,” writes Migros. The retailer expects pork demand to continue to decline in the future.
When it comes to meat consumption, pigs are ahead of poultry on the menu of the Swiss population. In 2022, they were consuming 20.7 kilograms per person. But consumption is decreasing. In 2017, it was 22.2 kilograms per person. During the same period, total pork consumption in Switzerland fell by over 5,000 tonnes to 184,400 tonnes. But during the pandemic, the Swiss began to cook at home more often, and more and more pork was consumed in the store. Farmers increased production, resulting in overproduction in the spring of 2022 and 2023. “Although there was no demand, Migros supported the farmers, took the animals from their hands and processed them,” writes Migros. The retailer expects pork demand to continue to decline in the future.
Arn took over the farm from his father 26 years ago and has invested more than a million francs in the last 20 years. He needs the security of planning to cover these additional expenses until he retires. “This short-term volume adjustment by Migros is unfair. It seems that those in charge at Migros completely misjudged the situation and the farmers are now the victims,” says Arn.
When asked, Migros assured: “The acceptance of animals is guaranteed,” says spokesman Marcel Schlatter. “There is currently an extraordinary shortage of pigs in the so-called ‘pig cycle’ and we are actually slaughtering many more IP Suisse animals than we planned. There is no risk that the current production cycle cannot be stopped,” he explains. Migros then wants to reduce its purchasing volume throughout the year.
Arn disagrees: “The cycle lasts about eleven months, so we IP farmers will face problems in the second half of the year.” So it’s a difficult thing.
But right now, scarcity is driving up prices. The price of one kilogram of pork is 4.40 francs. For Migros, these are “extraordinarily high” guide prices. According to Arn, this is the price farmers need to operate profitably. Last year the price fell due to overproduction; sometimes it was as high as 2.80 francs per kilo. “Many farmers made losses and stopped begging,” says Arn. Therefore, the slaughter quantity is currently 10 percent lower, leading to a current shortage of supply.
This plays into the hands of the farmer. However, Migros and Coop have an 85 percent market share in the IP pork market. “If retailers use their market power to push prices even lower, at some point we will no longer exist and Switzerland will have to import its meat from abroad with worse farming conditions.”
According to Arn, it is clear that pig farmers need to adapt to the market. But here’s what bothers him: Retailers are advertising animal welfare. A large portion of the population is voting for greater animal welfare and increasingly opting for cheaper meat in stores. Arn understands this from the general price increase. “But not everything makes sense.”
Migros emphasizes that despite all its understanding towards farmers, it should be based on customer demand. And it seems they are increasingly demanding cheaper meat. So there is definitely a demand for pigs, but less demand for those with IP supplements.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
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