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Home » Swiss farmers hit back at supermarket price squeezing
Business & Economy

Swiss farmers hit back at supermarket price squeezing

By switzerlandtimes.ch13 June 20252 Mins Read
Swiss farmers hit back at supermarket price squeezing
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A group of Swiss fruit and vegetable producers has filed a complaint with the country’s competition watchdog, accusing Coop, one of Switzerland’s two dominant supermarket chains, of abusing its market power. The farmers say that a new rebate system imposed by Coop will significantly reduce their revenues.

In early April, Coop introduced what it calls a new conditions agreement, which requires suppliers of fruit, vegetables and berries to pay back a portion of their turnover in the form of bonuses to the Basel-based retailer. According to the advocacy group Fair Markets Switzerland, this scheme began in May in the cantons of Bern and Fribourg at a 1% rate. By January 2026, the rebate is expected to rise to 3% nationwide.

Some growers have had enough. The advocacy group estimates that the new terms will cost producers around CHF 8 million ($8.9m) in turnover next year. We are seeing a downward price spiral, Stefan Flückiger, president of the association told RTS. Flückiger wants the practice stopped before other retailers follow suit.

The complaint, submitted on Tuesday to the Swiss Competition Commission (Comco), alleges that Coop is unilaterally imposing the scheme under take-it-or-leave-it conditions, exploiting its dominant market position to squeeze suppliers.

Rudi Berli, head of the Geneva chapter of the farming union Uniterre, called the move an abuse of power. Speaking to broadcaster RTS, he said such rebate demands were now widespread in Swiss retail, warning that they threaten the viability of local, sustainable agriculture.

Comco has confirmed it will examine the complaint.

Coop and Migros (including Denner) together share more than 80% of market share of food sales in Switzerland. Lidl and Aldi, two German discount supermarkets, have made some inroads, however they only make up around 3% each. Coop and Migros have a lock on most of the best locations, making competition difficult.

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