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Switzerland vegetable prices more stable than abroad

2017-09-19 foodmate

Tag: vegetables

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The consumer prices for vegetables are usually much higher in Switzerland than they are abroad. An analysis of the price development since 2014 shows, that Swiss vegetables prices are more consistent throughout the year, compared to neighboring countries like France and Germany. This is shown by the market report for fruit and vegetables in July 2017, by the BLW.

To track the price development in the different countries, a price index of the consumer prices for vegetables in each country was calculated for every year. This calculation included fresh fruit vegetables, root vegetables, onions and cabbages as well as lettuce (non-organic).

Indexes in Germany & France
Whats striking about the development since 2014, is that the vegetable prices in Germany and France were significantly lower in the summer compared to the winter. This is due to the bigger range of available products in summer, which leads to higher prices in Winter.

In the beginning of 2017, the cold weather in the Mediterranean lead to a shortage of vegetables. Due to this, prices in February of 2017 were up to 70% higher than they were in July of 2014. Because of the shortages there was a noticeable price surge in Switzerland as well during this time.

Effects of border control
Typically there are price surges in Switzerland during the vegetable season. In this time period, Swiss produce is being sold which is more expensive due to higher production cost. During this season, imports are only allowed if the volumes of domestic produce are not meeting the demand. Also there is a non-quota customs rate which is used for specialty products. Because of these measures the supply is shortened causing the prices to increase.

In the examined years the Swiss vegetable price index is consequently rising from April to June and then decreasing again between September and November. This price development is oposite from the developments in France or Germany wher theres significant differences between the prices in summer and winter. The border control is therefore partly contributing to the comparatively stable prices for vegetables in Switzerland.
 

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