Sales of Swiss biscuits: recovery in Switzerland; further strong decrease in exports

A difficult currency environment, additional regulatory burden and insecurity regarding future agropolitical framework conditions continue to affect the outlook. During 2016, the 24 industrial manufacturers of Swiss long-life bakery products sold 0.8% fewer items (43,919 tonnes) compared to 2015, with the associated turnover dropping by - 0.8% to CHF 448.0 m.

Following a decrease in sales in 2015, the domestic market recovered again in the previous year. Accordingly, the companies in Switzerland’s long-life bakery product sector sold 1.8% more items in 2016 (31,811 tonnes) compared to 2015. Turnover generated increased by 2.0% to CHF 346.8 m. Domestic consumption results in an average per capita consumption of 6.51 kg per annum.

Following the fact that export business already decreased substantially in 2015, the negative development continued to intensify in 2016. Accordingly, a decline of 7.2% was recorded with regard to the sales volume of 12,109 tonnes of products. Turnover generated decreased by 9.1% to CHF 101.2 m.

Germany continues to be number 1 out of the 102 export destinations for Swiss long-life bakery products, with an export share of 29.7%. The other key export countries remain unchanged with France (24.2%), Saudi-Arabia (6.3%) and Sweden (5.8%). The strength of the Swiss franc had a negative impact on export business in 2016. However, the outlook regarding future export development is also overshadowed by insecurity regarding future agricultural framework conditions. The agricultural border protection has increased costs for flour and butter in Switzerland two to three times above the cost level of surrounding countries.