Swiss retailer Migros today (7 May) announced retail price cuts equivalent to around CHF0.05 per litre of milk on a range of milk products.

The cuts were made possible by a new pricing agreement with milk producers and Migros dairy subsidiary Estavayer Lait SA (ELSA).

A few weeks ago, Migros chief executive Herbert Bolliger upset producers during a crucial phase in negotiations to set up a new milk marketing body. The resulting Fédération des Producteurs Suisse de Lait (PSL) was later to deliver cheaper milk pricing to processors.

Bolliger was accused of comparing the PSL to “a block of concrete that should be demolished” by the Swiss peasants’ union USP.

Earlier this month, the PSL published a review of 2008 dairy consumption in Switzerland, which identified stagnation in all major dairy categories except cheese.

Yesterday, both Migros and the USP publicly buried their differences, which the USP attributed to “a misunderstanding”.