Swiss retailer Migros has won legal approval for its plan to sell butter made with Swiss cream – but a significant cost.
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Last year, Migros applied to the Swiss authorities for permission to ship Swiss-produced cream out of the country, have it made into butter and shipped back into the country to sell in its stores.
However, despite being given the green light, Migros will face a charge to carry out its plan. The Swiss authorities have set a levy of CHF97 (US$116) per 100kg (quintal) of butter.
The retailer is campaigning to get retail butter prices down, by trying to loosen the grip of butter makers like Cremo and Emmi. Butter sales across the country have risen by just over 1% in volume year-on-year, equivalent to just over 3,000 tonnes a month.
The Swiss government operates a balancing system, whereby domestic butter shortfalls can be made up with imports. This summer saw the start a new four-year agricultural policy, intended to preserve rural businesses, even if it means higher retail prices.
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By GlobalData
