Switzerland’s number one retailer, Migros, has announced plans to lower the price of bread by between 0.05 and 0.60 Swiss francs (US$0.038-0.454). The price reduction is driven by a fall in the price of the 2005 Swiss bread corn crop and will come into effect from the end of January, the company announced.
Swiss bakers and farmers have not welcomed the move, local reports suggest. Fritz Rothen, general manager of flour producer IP Suisse, said that such reductions will put undue pressure on corn prices. Although the price of raw materials has declined, Rothen pointed out that these costs only account for 18% of the price of a loaf of bread. On this basis, the decline in costs only justifies a 0.02 franc reduction, he said.