Why could milk soon be cheaper in Switzerland?

The Swiss Milk Products Association has announced a reduction in the target milk price in Switzerland, starting in February 2026. The price drop comes as Swiss milk producers compete with neighbouring countries that often offer lower prices.

Target milk price per litre to drop in February

The Swiss Milk Producers Association (BOM) has announced that the target milk price will be lowered by 4 cents. A new target price of 78 cents per litre will be introduced in Switzerland from February 1, 2026.

Previously, when target prices were reduced for farmers and businesses, the benefit was “usually passed on to customers”, according to Watson. Butter, yoghurt and cream could also drop in price, but not cheese.

Swiss dairy industry competes with European neighbours

Dairy and milk production are an important part of Switzerland’s agricultural industry. The country produces around 4 billion kilograms of milk per year, which comes from around 20.000 dairy farmers and 560.000 cows, according to the Swiss Farmers website.

Milk prices have previously risen to 82 cents in recent years due to the coronavirus pandemic and conflict in Ukraine, reports Watson. But now, “Switzerland cannot escape the price pressures,” said Stefan Kohler, managing director of BOM. 

Cross-border shopping means that Swiss residents and citizens may be less likely to buy Swiss milk, finding cheaper alternatives in neighbouring countries like Germany.