The Swiss have a deep-rooted pride in their cheese, particularly their local varieties like Gruyère and Emmental, which are made from the milk of contented cows renowned worldwide. Surpassing the cheese consumption of the United States, the Swiss consume over 50 pounds of cheese per person each year.
Daniel Koller, a director at Swissmilk, the dairy association of Switzerland, shared that cheese is an integral part of Swiss identity. Therefore, it caused quite a stir when his colleague, the association’s president, recently stated in a Swiss newspaper that Switzerland is set to import more cheese than it exports this year, labeling it as economically, socially, and ecologically absurd.
Over the years, Switzerland’s cheese trade balance has been declining, particularly after the market was liberalized in 2007, enabling tariff-free trade with the European Union. Presently, Switzerland exports roughly 40% of its cheese production based on industry estimates.
Customs data reveals that, in the initial five months of this year, Switzerland imported more cheese than it exported. This is partly due to the Swiss developing a preference for foreign cheeses, causing local varieties to represent only 64% of cheese consumption in 2020, down from 77% in 2007, according to Swissmilk.
The number of dairy farmers in Switzerland has steadily declined over the past few decades, plummeting by more than half in the past 25 years. Swiss farming operations tend to be small-scale, with an average herd size of around 27 cows. Dairy farms with more than 100 cows are rare.
While the surge in foreign cheese importation may challenge the perception of Swiss national identity, economists assure that there is no need for alarm. Swiss producers have become more specialized in recent times, focusing on higher-value varieties like Gruyère for export. On the other hand, imports from France, which tend to be cheaper and softer, make up a significant portion of the imported cheese. The Swiss cheese commonly found in the United States is actually an American adaptation of Swiss hard cheeses, renowned for their distinctive holes.
It’s worth noting that not all imported cheese is consumed within Switzerland. A considerable portion is refined in Switzerland before being exported.
Martin Mosler, an economist at IWP, an economic policy institute at the University of Lucerne, emphasizes that the trade difference in cheese itself is not a major cause for concern. He highlights Switzerland’s expertise in producing high-quality cheese and its ability to fetch higher prices for exports compared to the lower prices paid for imports.
Inflation has also played a role in Switzerland’s cheese trade. While 2021 witnessed record-breaking Swiss cheese exports, the previous year experienced a decline due to inflation impacting Switzerland’s largest market, Germany, and squeezing shoppers’ budgets. Additionally, the strong Swiss franc made cheese more expensive for German consumers.
Conversely, the strong franc made imports cheaper, which benefits Swiss consumers. Mosler approves of increased imports, as it provides consumers with more choices at lower prices, ultimately benefiting Switzerland itself.
However, the shifting trade balance may affect Swiss farmers who specialize in producing cheaper cheeses.
Robert Finger, a professor at ETH Zurich, explains that milk prices in Switzerland, including those used in cheese production, have risen in recent years. While the impact is not severe yet, the number of farms in Switzerland has continued to decline, similar to the rest of Europe. This decline is primarily attributed to other economic and societal factors rather than higher cheese imports.
The United States has experienced a similar trend, with approximately half of its dairy farmers disappearing between 1997 and 2017 due to consolidation within the food system, the disappearance of small family farms, and lower worldwide milk prices.
According to Mr. Koller, Swissmilk’s director, it remains crucial to continue producing Swiss cheese for local consumers. Swissmilk aims to encourage the purchase of local products that adhere to Switzerland’s high quality and environmental standards. However, he acknowledges that the quality and standards in European Union countries are often comparable to those in Switzerland. “It doesn’t make sense just to close borders for cheese,” remarks Mr. Mosler, emphasizing the importance of maintaining an open trade approach.
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