Swiss Parliament Approves Retail Margin Monitoring Initiative
Both houses of the Swiss parliament have approved an initiative to monitor gross margins in retail, following a data leak three years ago that revealed high margins for milk products by Migros and Coop. The initiative aims to increase transparency in the food chain.
The initiative, 'For effective price monitoring in the food chain', was passed by the Council of States at the end of September. It calls for greater transparency about gross and net margins on Swiss food products among producers, processors, retailers, and wholesalers.
The initiative seeks to trace the share of the sales price received by farmers, processors, and retailers. The Federal Office for Agriculture will collect data on margins for Swiss food products and publish a report.
Farmers can use these market observation data to negotiate prices with major retailers like Migros, Coop, Aldi, or Lidl. For instance, Migros buys 'Tomme Vaudoise' for 1.26 francs and sells it for 2.10 francs, a gross margin of 67 percent. Coop, on the other hand, buys it for 1.40 francs and sells it for 2.35 francs, a gross margin of 68 percent.
While Migros and Coop have criticized the figures, stating they are not verifiable and there are no excessive margins, the initiative has been passed. The IG Detailhandel also finds disclosure of margins at the product level unfair and not understandable. The Federal Office for Agriculture will now collect and publish data on margins, aiming to bring more transparency to the Swiss food sector.
