This market imbalance of higher supply and plunging demand is creating an unsustainable downward pressure on farmgate milk prices. In recent years, producers typically received around 70 cents per liter, but the current surplus forces some farmers to offload milk for as much as 30 cents less. The IP emphasizes that this price collapse necessitates a coordinated reduction in the national herd size to stabilize the market and maintain acceptable milk prices for the nation’s approximately half a million dairy cows.

Alarmingly, some Swiss farmers have already initiated the drastic measure of sending healthy animals to the slaughterhouse earlier than planned to preempt further financial losses. Recognizing the immediate and negative impact of these forced herd reductions on farm income, the Interprofessional Association of the Dairy Sector is stepping in with a targeted relief effort to manage the surplus without relying solely on culling.

To mitigate the slaughter risk and manage the excess volume, the IP has activated an 11 million Swiss francs emergency fund. This financial lifeline is strategically allocated to processors over the next nine months to support the export of cream and butter. By subsidizing the sale of these commodities at competitive international prices, the IP aims to divert raw milk away from the distressed cheese market.