The Swiss are renowned for their profound affection for cheese, with local favorites like Gruyère and Emmental, crafted from the milk of blissful cows, earning international acclaim. Their love for cheese runs deep, and they consume over 50 pounds per person each year, surpassing the average of 40 pounds in the United States.
“Cheese is part of our identity,” stated Daniel Koller, a director at Swissmilk, the country’s prominent dairy association. However, recent developments have sparked debates and concerns within the Swiss cheese industry. The association’s president set off a storm when he predicted that Switzerland would import more cheese than it exports this year, labeling it “absurd economically, socially, and ecologically.”
Over the past decades, Switzerland’s cheese trade balance has steadily declined, especially since the market’s liberalization in 2007, allowing tariff-free trade with the European Union. Today, around 40 percent of the cheese produced in Switzerland is exported, according to industry estimates.
Customs data reveals that in the first five months of this year, Switzerland imported more cheese than it sold abroad, partly due to the increasing fondness for foreign cheese varieties. Local cheese consumption decreased to 64 percent last year, down from 77 percent in 2007, as reported by Swissmilk.
Despite the influx of foreign cheese, economists remain optimistic and urge against panic. Swiss producers have adapted by specializing in higher-value cheeses like Gruyère, which they primarily export. In contrast, imports, mainly from France, consist of cheaper and softer varieties. Interestingly, what Americans refer to as “Swiss cheese” is, in fact, an American take on the Swiss hard cheeses, renowned for their characteristic holes.
Nonetheless, not all imported cheese remains in Switzerland. A substantial portion undergoes refining before being exported elsewhere, highlighting the country’s active role in the global cheese market.
Economist Martin Mosler of the economic policy institute IWP at the University of Lucerne assures that the trade difference in cheese should not be a major concern. Switzerland maintains a healthy trade surplus in cheese by financial value, with Swiss cheese exports fetching approximately 10 Swiss Francs per kilo ($11.60), while imports are valued at around six Swiss Francs per kilo.
Inflation has also played a role in Switzerland’s cheese trade. Last year, the Swiss cheese exports saw a dip due to Germany’s struggles with inflation, tightening consumer budgets and making Swiss cheese more expensive in their market. In contrast, the strong Swiss franc made imports cheaper for Swiss consumers, providing them with more choices at lower prices.
The shifting trade balance, however, may impact Swiss farmers who produce cheaper cheeses. Milk prices in Switzerland have risen in recent years, affecting dairy farmers, although the decline in their numbers is mainly attributed to broader economic and social changes, as per Robert Finger, a professor at ETH Zurich.
The United States has faced a similar trend, losing about half of its dairy farmers between 1997 and 2017 due to various factors, including consolidation in the food system, vanishing small family farms, and global milk price fluctuations.
Amidst these challenges, Daniel Koller emphasizes the importance of continuing Swiss cheese production for domestic consumption. Swissmilk’s goal is to encourage locals to buy products adhering to Switzerland’s high quality and environmental standards.
Despite the changing tastes, it is essential to recognize that the quality and standards of European Union countries’ cheeses do not drastically differ from those in Switzerland. As economist Martin Mosler rightly concludes, closing borders for cheese wouldn’t make sense in an increasingly interconnected world. The Swiss are finding a way to embrace global flavors while preserving their rich cheese-making traditions.
Original news source: Why Is Switzerland — of All Places — Importing So Much Cheese? – The New York Times (nytimes.com)
