The Swiss federal government is to allocate an additional SFr164m (US$110m) to help rescue the ailing Swiss dairy industry.

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In an attempt to overcome the current crisis facing the dairy industry, the government is to use SFr70m to finance the removal of cheese and butter stocks, while SFr63m will be used to pay milk deliveries to farmers. A further SFr31m will be available in loans for companies that specialise in cheese processing and marketing.

The government has turned down a SFr15m social plan that was proposed by the Swiss Federation of Trade Unions on behalf of bankrupt Swiss Dairy Food, reported the Swiss News Digest.

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