Increases in sugar prices are putting pressures on the Swiss market, Biscosuisse reported, the organisation that represents the Swiss confectionery and biscuit sector.
Although the Swiss sugar sector recently successfully lobbied for a foreclosure of the Swiss sugar market by arguing of alleged discount prices, the organisation said, sugar prices are at an all time high and are putting Swiss companies under additional pressure.
Sales recorded of confectionery manufacturers last year increased significantly, as the export markets recovered. In the domestic market, however, manufacturers faced high import pressures and a strong increase in costs in raw materials, packaging and energy sectors were higher than sales revenues.
Procurement price for sugar is kept high in Switzerland without resulting additional costs for Swiss sugar processors being offset in the domestic or EU market. It was only recently that a large provider of Swiss sugar urged politicians to strengthen border protection by depicting sugar prices as ‘discount prices’. A look at the development of sugar prices shows how wrong this argument was, Biscosuisse argue, as the price of sugar has doubled since then.
Instead of an ‘import avalanche’, there was a massive increase in the import of end products containing sugar. As a result, Swiss processing companies are under twofold pressure: on one hand in competition with companies who produce more cheaply abroad, and on the other hand with a monopolist whose price-setting power for Swiss sugar was strengthened with the fixing of border protection.
“A relief is urgently needed,” the organisation wrote in its press release.
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