The grain industry wants to secure hidden subsidies: farmers’ revolt against cheap flour

class=”sc-cffd1e67-0 fmXrkB”>

There have been illegal bread subsidies in Switzerland for decades. Until the Federal Council put an end to the violation of the constitution last year – thereby putting a lot of flour in the country’s grain mills.

Today, factories can import wheat to make starch virtually duty-free. This is not only used in the food industry, but also for the production of cardboard and slug pellets.

But thanks to a loophole in the law, some of the cheap wheat from abroad ended up in bread and rolls until recently. Thousands of tons of grain intended for starch production were diverted to make flour. A lucrative practice because the rate on wheat for bread production is many times higher.

It was over at the end of 2022

The federal government considered the procedure illegal years ago. But due to the successful lobbying of the affected industry, nothing happened for a long time. It was only at the end of 2022 that this finally came to an end.

Or not? The controversy over cheap flour is now occupying Parliament. And it causes a lot of problems for the farmers.

The reason is an initiative by former state councilor Hansjörg Knecht (63). The former SVP politician himself owns a grain mill. He demanded that the change be reversed. No fewer than 43 members of the State Council (out of a total of 46) have co-signed the demand. The approval of the small chamber was therefore a formality.

Farmers against farmers

The National Council will decide on Monday. The farmers’ association is campaigning for a yes vote. But there is resistance. As Blick knows, farmers are rebelling against the plans and trying to overturn the decision at the last minute. The Bernese Farmers’ Association, by far the largest cantonal association, dares to revolt.

Markus Lüscher of the Berne Association criticizes that the old rule, which is now being reintroduced, would deter farmers. Because Swiss farmers produce more than enough bread wheat themselves. Because there is currently too much on the market, thousands of tonnes that are actually intended for bread production are being converted into animal feed. That is absurd, says Lüscher. “We farmers are the ones who have to pay for these surpluses.”

When asked, the boss of the farmers’ association and Center National Councilor Markus Ritter (56) admits that cheap grain from abroad “could put pressure on the domestic bread grain market” – which is therefore a disadvantage for farmers. But you need to make a “general economic assessment”. And the advantages would outweigh the disadvantages. In other words, Ritter prioritizes the interests of downstream industries over the interests of those he actually represents.

The industry warns of job losses

The grain industry is warning that factories and other businesses dependent on Swiss starch production could have to close if they can no longer import foreign grain at virtually no tariffs. The jobs of dozens of workers are at risk, says Thomas Helbling, chairman of the umbrella organization of Swiss millers.

But it is not only among farmers that there is resistance to the reintroduction of bread subsidies. The Fair Markets Switzerland Association (FMS) is also fighting against it. Even though the sector claims the opposite: “The farmers are getting a bad deal. The deal with the large factories will cost them dearly,” says FMS chairman Stefan Flückiger.

Source:Blick