Agricultural policy, markets and value chains

Together with Ecoplan, we are analysing the impact of marketing aid for livestock products (poultry, pork, beef, milk and dairy products) on biodiversity in the Swiss agri-food sector. The share of federal marketing aid in the total expenditure on marketing communication measures for livestock products in Switzerland was estimated at around 10–20%.

Literature reviews, data analysis and expert interviews were carried out to determine whether the marketing aid was having the intended effect on demand. The first step was to analyse the extent to which the measures, in particular advertising, led to changes in consumer behaviour and consequently in the demand for meat and milk. As it was not possible to precisely quantify the effects of marketing aid on purchasing and consumption behaviour, a set of consumption scenarios was defined on the basis of the literature review and expert interviews.

The evaluation showed that marketing aid tends to have a negative impact on biodiversity.

The main objective of the study was to assess the current product marketing situation and to develop possible strategies to improve producer prices. The study covered six value chains: milk and dairy products, beef and pork, poultry meat, vegetables, potatoes and bread grain. First, the current state of each value chain was analysed in detail. This included literature reviews and statistical research, as well as bilateral discussions with experts and practitioners at the sales front-line. We also produced accurate and validated maps of the value chains and identified strategic stakeholder groups. A workshop was then held with practitioners and government representatives to select realistic strategic directions and discuss the desired financial and non-financial support. The study was carried out in partnership with AGRIDEA on behalf of the Canton of Fribourg’s department of institutions, agriculture and forestry (ILFD).

What is the economic situation of the farming sector in French-speaking Switzerland in 2015? What strategic direction should it take? The study is based on three pillars: a statistical analysis of the structures and economic situation of the agricultural sector in French-speaking Switzerland, a strategic analysis of 20 typical farms distributed across the various cantons, and an analysis of four agricultural value chains: Cereals for bread, wine, milk and poultry meat. This study was commissioned by AGORA (Association des groupements et organisations romands de l’agriculture).

On behalf of the State Secretariat for Economic Affairs SECO, we analysed the potential of a number of autonomous measures to reduce border protection in the agri-food sector. The study formed part of the debate on Switzerland as a high-price island, to which food products in particular contribute due to higher producer and consumer prices compared to neighbouring countries. The aim was to identify products with unnecessary or unnecessarily high tariff protection that could be reduced without adversely impacting the domestic agricultural sector. The focus was on four categories of products and tariffs: products with no connection to the Swiss agricultural sector, individual particularly high tariffs, unnecessarily high or unnecessary protections in quota systems, and explicit or implicit industrial protection in the case of tariffs on processed agricultural products. The assessment also included a review of the impact of the tariff cuts on trade flows, the processing sector and price transmission in the value chain.

Together with the Swiss Young Farmers’ Committee (JULA), we developed a collaborative project to analyse the determinants of success in increasing added value with a focus on the dairy market. The question was how to increase added value in the context of individual projects in the current situation. Are there key factors that favour an increase in added value? We also analysed how the dairy sector’s organisation on the markets and at political level could promote or even initiate this increase.

Switzerland is experiencing a boom in fish farming. Never before has so much fish been consumed in the country. Yet domestic fish production accounts for only a fraction of total consumption. Swiss farmers see fish farming as a promising business endeavour. However, due to spatial planning legislation and the status of fish as wild animals, fish production is only possible as a side business. As a result, some farmers were forced to give up fish production after a relatively short period of time. In addition, they sometimes underestimated the associated financial and technical challenges or lacked understanding of the value chain, the latter due in part to the lack of a public overview of the Swiss fish market. As part of the Swiss Federal Office of Agriculture’s (FOAG) Ordinance on Promoting Quality and Sustainability in the Agriculture and Food Sector (QSA), and with financial support from the Swiss Farmers’ Association and the agricultural cooperative Fenaco, we closed this gap and produced an analysis of the Swiss fish market. The aim was to gain an overview and identify potential along the value chain.

The achievement of the first two Sustainable Development Goals (SDGs) – end poverty and hunger by 2030 – requires substantial investment. To fully contribute to sustainable development, both public and private investments should be perfectly aligned with the SDGs. In this context, empowering youth to invest in their own farms and businesses along agricultural value chains needs to be a key component of sustainable, development-centred investment promotion and mobilisation. There are three reasons: improvement of food security; enhancement of the added value of food products; and improvement of employment and economic welfare.

In collaboration with the Food and Agriculture Organization of the United Nations (FAO), BFH-HAFL developed a strategic planning tool to help propel investments by young agri-entrepreneurs at national or regional levels and ensure their sustainability. It analyses the current environment and overall conditions young investors face while offering practical solutions to overcome the main challenges identified. The strategic planning tool also helps ensure that decision-makers take ownership of the results through a participatory and inclusive process. The project received financial support from the Swiss Federal Office for Agriculture (FOAG).