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THE COMPETITION IN 1997
U.S. and
Competitor Expenditures on Export Promotion and
Export Subsidies for Agricultural, Forestry and Fishery Products
Switzerland
Switzerland is a net importer of most agricultural products, but a net exporter of milk products and cattle. Some of the goods imported are reexported as higher value products, such as chocolate, coffee, sugar confectionery, cigarettes, and textiles. Since agricultural prices are very high in Switzerland, exports of food or feedstuff produced in Switzerland are generally not economically viable, except for selected luxury goods or with major subsidies (dairy products and beef). In 1996, Switzerland spent $317.5 million on export subsidies and $44.5 million on export promotion, mostly for cheese.
The main Swiss organization for cheese and milk products is the Cheese Union, a parastatal organization mandated to export Swiss hard cheese: Emmental, Gruyere and Sbrinz. The Union members are the milk producers association, the cheese manufacturers, the exporters union and the government. The Cheese Union has offices in eight countries: Germany, France, Italy, Great Britain, Belgium, Spain, Canada and the United States. About half of its export promotion budget of $42 million goes to support these offices with the rest used for promotion activities such as in-store promotions, public relations activities such as advertising, and special consumer level activities such as contests. Its budget is funded entirely by reimbursements from the Swiss government. The Cheese Union sponsors the Swiss national ski team, which has incorporated a Swiss cheese design in its uniform. The Cheese Union is also the organization through which export subsidies are dispensed. In 1996, Switzerland spent $247 million on export subsidies for cheese and other dairy products.
The Swiss Weinexporteurenvereinigung, or Wine Exporters Union is the organization which conducts export promotion for Swiss wines. It is a union of 51 wine exporters who pay a minimal annual participation fee. The Union maintains an office in New York to conduct its North American promotions. During 1996 it spent $2.5 million on export promotion.
During 1996, Switzerland subsidized the export of beef and cattle to reduce domestic stocks that had accumulated because of the BSE crisis. These export subsidies totaled $70.5 million.
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