The Swiss government has announced it will pay out over SFr70m (US$47m) in compensation to around 7000 dairy farmers who were badly affected by the collapse of Swiss Dairy Food.

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The milk processing company went into receivership because of its enormous debts, still owing large sums of money to farmers. The government has pledged to repay around 80-90% of the money owed to farmers by the company.


Swiss Dairy Food was one of Switzerland’s biggest dairy processors and controlled 20% of the milk market. The cheese and ice-cream divisions are likely to be sold, thereby guaranteeing jobs for around two-thirds of the company’s 1600 employees.


 

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