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"Swiss-Crisis: "We have to avoid becoming insecure.”"

Since 15th January 2015, the Swiss Franc has no longer been bound to the Euro. The minimum exchange rate of 1.20 Swiss francs (CHF) per Euro was erased by the Swiss national bank. As a result, the Swiss currency gained sharply in value compared to the Euro. On one hand, import products into Switzerland become cheaper and on the other the Swiss export products to Europe become expensive - the difference in price is going to increase.


Marc-André Wermelinger, managing director of SWISSCOFEL

Afraid of a changing consumer behaviour
Marc-André Wermelinger, managing director of SWISSCOFEL, the association of the Swiss fruit, vegetable and potato trade explains: “In the future we will have to observe the substitution behaviour of the consumers. Perhaps, this will give an indication of the future market development. The Future will tell, but we have to avoid becoming insecure about the whole situation. That would be very bad. Insecurity can lead into a change in consuming behaviour. Unfortunately, in uncertain times it is still the case that consumers save their money on food. We have to ensure that the mood among consumers remains positive.”

Mostly all exotic products are imported
About 50 percent of the entire Swiss demand of fruits and vegetables are imported. Marc-André Wermelinger says: “Regional Swiss products are only marginally presented in these 50 percent. For example, only ten percent of the total apple demand or five percent of the potato demand have to be imported. But for goods such as table grapes 99 percent are imported.” Wermelinger expects that especially in summer, fruits and vegetables will vary in price: “Increasingly in summer our own products will compete with cheaper imported products. The price gap will grow."

Other economy sectors are going to be hit harder
“Switzerland has a population of around eight million people and they are all quite mobile”, says the managing director of SWISSCOFEL, “The price-sensitive customers are, however, fewer in the field of fruit and vegetables. The main target for Swiss shopping tourism is mostly meat instead of fruit and vegetables.” Wermelinger continues, “The current situation will hit the fruit and vegetable sector in Switzerland less than others.” He expects that the crisis will be increasingly reflected within meat and milk industry. Also, the future of the Swiss tourism industry sees Wermelinger as problematic: “Probably the crisis will be a devastating hit to the tourism industry. They had already cancellations. But how the situation will be during summer? Nobody can exactly say what is coming.”

SWISSCOFEL: The association of trade
SWISSCOFEL is the association of Swiss fruit, vegetable and potato trade. The members cover around 86% of the Swiss market volume. SWISSCOFELs members are active in the wholesale and retail trade, import, convenience and industry related fields. They generate annual sales of about 4 Billion CHF with fruit, vegetable and potatoes. The association is the voice of its members and negotiates also their frame conditions. In addition, the association offers further education and training to its members. Besides many smaller markets and dealers, the large supermarket chains Migros and Coop are also SWISSCOFEL members. “Food service” companies and logistics companies are also members of SWISSCOFEL.


More information:
Marc-André Wermelinger
SWISSCOFEL
Belpstrasse 26
CH-3001 Bern
T. +41 31 380 75 75
F. +41 31 380 75 76
marc.wermelinger@swisscofel.ch
www.swisscofel.ch