Popular initiative – Forcing distributors to lower the price of organic meat

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The Swiss Animal Protection (PSA) is planning a popular initiative that would force Coop and Migros to sell organic meat at a lower price. Because currently, it sells badly because of its high price, estimates the PSA.

AFP

The trend has been confirmed for several years now: in Switzerland, consumers want sustainability. Whether for baby food, wine, beer, vegetables and fruits. Indeed, the market share of organic labels continues to increase and this at a frantic pace.

However, there is a product for which sustainable production poses a problem, recalls this Sunday the “NZZ am Sonntag”: meat. The share of organic for this food is indeed low. It represents only 3% of the total market for pork or chicken. The figures are a little more pleasing if we add to them the labels that are not organic, but which produce according to standards that go beyond the minimum imposed by the Swiss law on the protection of animals. These are, for example, IP Suisse, Optigal or Naturafarm. As regards beef, pork and lamb, the share of labels has recently decreased.

Sometimes huge price differences

The current situation does not suit the Swiss Animal Protection (SAP). The umbrella organization bringing together more than 70 animal protection organizations has been committed for years to a greater share of labeled meat, whether organic or produced in an animal-friendly way. Research from Sunday shows the PSA plans to launch a grassroots initiative to boost sales of animal-friendly meat. Currently, the PSA does not yet know exactly how to go regarding it. That’s why she turned to legal experts.

The information was confirmed by Stefan Flückiger, director of agricultural policy at the PSA. “We would have hoped that animal protection would benefit from the trend towards sustainability,” he laments. The reason why consumers willingly treat themselves to organic vegetables, but shun meat produced with respect for animals, is quickly found, according to him: the price differences between the conventional product and the labeled product are sometimes enormous for meat. Thus, at Coop, the Prix Garantie foreign chicken breast in large packaging costs 1.23 francs per 100 grams. Its Swiss equivalent Naturaplan costs 5.95 francs for the same quantity. That’s almost five times more.

Many suppliers and few buyers

Stefan Flückiger is aware that a popular initiative is a “powerful instrument”. Reason why, it must be “formulated in a very precise way to obtain the approval (note: of the people) and to have an impact”. And to add: “This is what we are working on now.”

Economist Mathias Binswanger, from the University of Applied Sciences North-Western Switzerland (FHNW), supports the PSA in its approach. According to him, there is a failure in the meat market. Farmers certainly represent many suppliers. However, there are few buyers. “It’s basically the meat processing companies of Coop and Migros, and a few others.” Mathias Binswanger suspects these firms of pocketing too high a margin on labeled meat.

Situation «win-win»

According to the economist, it is absolutely necessary to involve farmers in the process. “Eventually, farmers should receive more money and prices for labeled meat should drop for customers.” According to him, this would be a “win-win” situation.

A new law, such as that envisaged by the protection of animals, would intervene directly in the fixing of the prices of the large distributors. Contacted, Coop and Migros vehemently dispute the fact that they pocket an additional margin on sustainable meat produced with respect for animals. “At the end of the day, we don’t earn more on labeled products than on conventional products,” writes a Coop spokesperson. Same story at Migros. According to its press service, the competition is so intense that customers immediately recognize overpriced products. “We have been committed to animal welfare for decades and we will further strengthen this commitment in the future. Organic products, among others, will thus be cheaper.”

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