In October 2009, the Swiss government announced a change in private-sector financial support.



  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 21 Oct 2009 | Removal date: open ended

Production subsidy

On 21 October 2009, The Swiss Federal Council approved CHF 28 million for the support of the agricultural sector. First, the credit for price compensation measures for agricultural products (see "Schoggigesetz") was increased by CHF 18 million. The purpose of this credit is that local - instead of foreign - raw materials including butter, milk powder and grain are used in food manufacturing.
Secondly, the subsidy for breeding cattle and productive livestock exports is increased again to a maximum of CHF 1.5 million. Hence, additional animals can be exported, which will decrease the stocks and stabilizes the milk and meat markets.
Thirdly, The Swiss Federal Council allocates CHF 6 million to increase the amount of direct payments for open farmland from previously 620 CHF to 640 CHF per hectare.
Finally, the potato industry receives a maximum of CHF 2.5 million for feedstock recycling (Verwertungsmassnahmen) if the branch itself allocates CHF 5 million.
All expenditures to be funded within the state budget for the agricultural sector.
Provided that the milk branch aspires a sustainable market model and a milk supply that is accepted by the market participants, The Federal Council will also provide CHF 4.5 million from the Butterimportfonds to the milk sector.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.