Cheap Spanish tomatoes, an era at the end of the line? (cross-border guide)
Importing fruits and vegetables from Spain could decrease due to higher wages and foreign competition.
Context
♪ The import of fruits and vegetables from Spain could decrease in Switzerland due to higher wages, stricter regulations and foreign competition, especially from Africa and Asia. What: Importing fruits and vegetables from Spain could decrease in Switzerland. - When? The trend is already in progress and could intensify in the coming years. - Where: Spain, Switzerland, with particular attention to the cantons of Zurich, Geneva and Ticino. - Who? Spanish producers of fruits and vegetables, Swiss importers, Swiss consumers. - Amount: Not specified in the source, but the total import of fruits and vegetables from Spain in Switzerland in 2020 was about 1.2 billion Swiss francs. Spain is historically the leading supplier of imported fruits and vegetables in Switzerland. However, higher wages, stricter regulations and foreign competition are eroding the Iberian primacy. In 2020, Spain provided around 35% of Swiss imported fruit and vegetables, compared to 45% in 2015. Most fruits and vegetables for sale in Swiss supermarkets come from Spain, but this primacy could be in danger. ### Checklist operating for Swiss consumers To adapt to this new reality, Swiss consumers may have to consider the following options: - . Choose local and seasonal products, which will not only support the Swiss economy, but also reduce the environmental impact. - . Explore alternatives such as organic or zero km products, which may be slightly more expensive, but with a lower environmental impact. - . Keep an eye on prices and offers, as changes in the market could lead to price changes. The Swiss legislation on the import of fruits and vegetables is subject to European and national regulations. One of the most important regulations is the Federal Food and Beverage Act (LAliment), which entered into force on 1 January 2017, which lays down the rules for the safety and quality of imported foods. In addition, Switzerland has signed free trade agreements with many countries, including the Free Trade Agreement with the European Union (EU), which could influence the fruit and vegetable market. ### Comparison of practical scenarios To better understand the impact of these changes, we consider two practical scenarios: 1. Current scenario: Spain remains the leading supplier of fruits and vegetables in Switzerland, with a wide range of products available all year round. 2. Future scenario Imports from Spain decrease due to higher wages, stricter regulations and foreign competition. This could lead to an increase in prices and a reduction in availability of some products, but also to an increase in the supply of local and seasonal products. In both cases, Swiss consumers will have an important role in shaping the fruit and vegetable market, choosing products according to their preferences and their environmental and social impact. TITLE ARTICLE: Spaniards, an era at the end of the line?
Operational details
Imports of fruit and vegetables from Spain could decrease due to higher wages, stricter regulations and competition from outside Europe. Spain is the leading supplier of imported fruits and vegetables in Switzerland, but this primacy could be in danger. Spanish fruit and vegetable producers may have difficulty competing with producers from other countries offering lower prices. In Switzerland, the import of fruits and vegetables from Spain has reached a value of 1,2 billion Swiss francs in 2020, according to the data of the Federal Statistical Office. However, this value could decrease due to changes in the market. The highest wages in Spain are making Spanish products less competitive than those in other countries. For example, interprofessional minimum wage in Spain increased by 22% between 2015 and 2020, from 650 to 800 euro per month. In Switzerland, the minimum wage varies according to the canton, but in general is higher than in Spain. In the canton of Zurich, for example, the minimum hourly wage is 38 Swiss francs, or about 35 euros. In addition, stricter regulations in Spain are increasing production costs for Spanish producers. For example, the new law on the protection of agricultural workers, which entered into force in 2021, provides for stricter penalties for violations of labour standards. However, this law could increase costs for Spanish producers, making their products less competitive than those in other countries. Competition from outside Europe could further threaten the primacy of Spain as the leading supplier of fruits and vegetables in Switzerland. For example, Morocco is an important fruit and vegetable producer and has entered into a free trade agreement with the European Union, which could allow it to compete with Spanish producers on the Swiss market. In addition, Switzerland could increase the import of fruits and vegetables from EU countries, which have lower production costs than Spain. For example, the cost of work in Poland is about half that in Spain, according to OECD data. However, there are also factors that could encourage Spain as the leading supplier of fruits and vegetables in Switzerland. For example, Spain has a favourable climate for fruit and vegetable production, which allows it to provide fresh products for most of the year. In addition, Spain has a long tradition in the production of fruits and vegetables, which has allowed it to develop advanced technologies for the production and preservation of products. In addition, Switzerland could consider importing fruits and vegetables from neighbouring countries, such as Italy or France, to reduce transport costs and greenhouse gas emissions. However, these countries may have higher production costs than Spain. In conclusion, the import of fruits and vegetables from Spain could decrease due to higher wages, stricter regulations and competition from outside Europe. However, Spain could still maintain its primacy as the leading supplier of fruits and vegetables in Switzerland thanks to its favourable climate and its long tradition in the production of fruits and vegetables. Switzerland could also consider importing fruits and vegetables from nearby countries to reduce transport costs and greenhouse gas emissions. In any case, Switzerland will have to make a choice or
Key points
If you are a fruit and vegetable producer in Spain and want to understand how foreign competition might affect your business, consult a commercial law expert or a specialized advisor in imports. They could help you evaluate your options and make informed decisions about your business. Spain is one of Europe's largest fruit and vegetable producers, but foreign competition is becoming increasingly fierce. In particular, Swiss manufacturers are gaining market shares thanks to their ability to offer competitive prices and a constant quality of products. To better understand the situation, we consider the case of tomatoes. In 2020, the production of tomatoes in Spain reached 2.5 million tonnes, but Swiss competition is putting Spanish producers in trouble. Switzerland, in fact, produces about 250,000 tons of tomatoes a year, but thanks to its efficiency and quality of the products, is able to compete on international markets. Switzerland has a competitive advantage thanks to its geographical position and efficient transport network. In addition, Swiss producers benefit from a series of government incentives and subsidies, which help them maintain competitive prices. For example, in 2021 the Swiss government allocated 20 million francs to support agriculture, including fruit and vegetable production. To counter Swiss competition, Spanish manufacturers may consider different options. First, they could invest in advanced technologies to increase efficiency and reduce production costs. Moreover, they could diversify their production to focus on products with low environmental impact and high added value, such as organic tomatoes or branded products. In addition, Spanish manufacturers might consider the possibility of making trade agreements with their Swiss counterparts to create synergies and share the best practices. For example, they could create a consortium for the joint promotion of products on international markets, or for the sharing of resources and technological knowledge. Finally, Spanish producers may also consider using European regulations to protect their production. For example, European legislation on quality branded products could be used to promote Spanish products as high quality and distinct from Swiss products. In any case, it is important that Spanish producers carefully evaluate their options and make informed decisions on their activities. Consultating with a commercial law expert or a specialized advisor in imports can be an important first step to understand how foreign competition could affect the business and to assess the available options.
Frequently Asked Questions
- What are the causes of the possible drop in the import of fruit and vegetables from Spain?
- Higher wages, stricter regulations and competition from outside Europe are the main causes of the possible decline in the import of fruit and vegetables from Spain.
- Is Spain still the leading supplier of imported fruits and vegetables in Switzerland?
- Yes, Spain is still the main supplier of imported fruit and vegetables to Switzerland, but its primacy could be in danger due to the possible decline in the import of fruit and vegetables from Spain.