The heat does not curb meat consumption, but it will increase prices (cross-border guide)

Context

In a nutshell

• The heatwave did not prevent an increase in meat consumption.
• Drought could reduce supply and drive up prices.
• The food industry is preparing for increases due to shortages of raw materials and livestock in advance of slaughter.

Key facts

• What: Meat consumption in Switzerland.
• When: Heat wave.
• Where: Switzerland.
• Who: Food industry.
• Amount: Price increase.

BASEL - Switzerland's heatwave has so far failed to significantly curb meat consumption, but prolonged drought risks reducing supply and driving up prices. Marco Tschanz, CEO of Bell, one of the main players in the Swiss food sector, sounded the alarm.

"If temperatures exceed 29 degrees for an extended period, meat consumption begins to fall: consumers may have less desire to get in front of the barbecue," explains the executive in an interview with the AWP agency. “But we didn't see a massive drop thissummer. Factors such as holidays or vacations have a greater weight. "

According to data from the Federal Office of Agriculture (FOAG), meat consumption in Switzerland increased by 5.6% in 2022 compared to the previous year. Beef was the most consumed, followed by pork and chicken. Beef consumption increased by 10.3% in 2022, while pork consumption increased by 4.5%.

However, the

Operational details

The food industry is preparing for increases due to shortages of raw materials and livestock in advance of slaughter. The lack of water is already having repercussions on the entire supply chain. Small-leaf salads are in part almost unobtainable in Europe, so much so that they have been forced to source from Turkey. Even more critical is the situation for livestock: “Due to the drought the animals are brought downstream for slaughter earlier than expected: this means that we will miss thatoffer later in the year.”

According to data from the Federal Office for Agriculture (FOAG), the cost of meat production in Switzerland increased by 10% compared to the same period last year. This is mainly due to the scarcity of animal feed, which increased in price by 15% on average. "The situation is critical especially for the production of beef and pork, which represent the majority of the Swiss market," explains a representative of the food industry.

The situation is even more worrying for the regions most affected by the drought, such as the Canton of Ticino and the Grisons region. In these places, meat production was reduced by 20% compared to the same period last year. "The lack of water is a serious problem for meat production, which requires large amounts of water for feed production," explains a farmer from the Canton of Ticino.

Meat scarcity

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Key points

The food industry is building up targeted stocks to cope with any bottlenecks. "We try to estimate the quantities to be stored based on the expected sales trend and the current availability of raw materials," says the chairman of the management in charge since 2024. “Sourcing is further complicated by the fact that meat cannot be imported freely.”

Beef is one of the most popular products in Switzerland, especially during the summer months when consumption increases. According to data from the Federal Office of Agriculture (FOAG), demand for beef increased by 10% in 2022 compared to the previous year. Most of this demand comes from German-speaking regions, such as Canton Bern and Canton Zurich.

However, the import of beef is subject to strict regulations. According to the Federal Beef Import Act (LIFC), importers must comply with a number of requirements, including certification of origin and compliance with sanitary standards. In 2022, the FOAG found that only 20% of beef imports came from countries with a low level of risk.

To cope with this situation, food companies are increasing beef stocks. According to a survey conducted by a consulting firm, 60% of Swiss food companies are increasing beef stocks to prepare for any

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Source: tio.ch