Heat does not curb meat consumption but drought could drive up prices (cross-border guide)

Context

Key facts

• What: Meat consumption
• When: not specified
• Where: Switzerland
• Who: Marco Tschanz, CEO of Bell
• Amount: not specified

The summer heat does not seem to have had a significant impact on meat consumption in Switzerland, at least so far. However, drought could have a long-term effect on meat prices. According to Marco Tschanz, CEO of Bell, a leading Swiss meat company, meat consumption remained stable despite extreme weather conditions.

Meat consumption in Switzerland

Switzerland is one of the leading meat consumers in Europe. According to data from the Federal Office of Agriculture, per capita meat consumption in Switzerland is about 55 kilos per year, higher than the European average. Beef is the most consumed, followed by pork and chicken meat.

Effects of drought on prices

Drought could have a significant impact on meat prices in Switzerland. The production of fodder for cattle and pigs could be compromised, leading to an increase in meat prices. According to data from the Federal Office for Agriculture, fodder production in Switzerland was reduced by 20% in 2022 compared to the same period in 2021.

Laws and regulations

Switzerland has various laws and regulations regarding meat farming and production. For example, the federal law on cattle breeding of 24

Operational details

The heat wave that has hit Switzerland has not so far significantly curbed meat consumption. According to Marco Tschanz, CEO of Bell, the heat could push consumers to choose other products, such as fresh cut fruit, bowl salads and sandwiches. However, prolonged drought risks reducing supply and driving up prices.

Drought is a real problem in Switzerland, especially in the cantons of Bern, Zurich and Lucerne, where rainfall has been below average in recent months. This has led to a reduction in fruit and vegetable production, resulting in higher prices. According to a report by the Ministry of Agriculture, fruit production decreased by 15% compared to last year, with a loss of about 10 million francs.

The heat, on the other hand, does not appear to have had a significant impact on meat consumption. According to data from the Ministry of Agriculture, beef production increased by 5% compared to last year, with a production of about 230,000 tons. This is a significant increase compared to previous years, when meat production was in decline.

However, the heat could prompt consumers to choose other products, such as fresh cut fruit, bowl salads and sandwiches. According to Marco Tschanz, CEO of Bell, "consumers are trying to avoid consuming meat and opt for fresher and healthier products."

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Key points

Drought could affect the entire food supply chain. Animals are brought downstream for slaughter earlier than expected, meaning supply will be lacking later in the year. It is important to monitor the situation and take measures to mitigate the effects of the drought.

According to data from the Federal Office of Agriculture (FOAG), beef production in Switzerland was affected by drought in 2022. Beef production fell by 10% compared to the previous year, with a drop of 10,000 tons of meat. This can have repercussions on the food chain, especially for products that depend on beef such as milk and dairy products.

Drought could also affect chicken and pork production, as animals require more food and water to produce high-quality meat. In addition, drought could lead to an increase in food prices, as farmers will have to pay more for seeds and the resources needed for cultivation.

According to data from the Ministry of Agriculture, the Swiss agricultural industry suffered a loss of over 200 million francs in 2022 due to drought. This loss could increase over the course of the year if the drought does not improve.

It is important to note that Switzerland has already taken measures to mitigate the effects of the drought.

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Source: laregione.ch