Swiss Milk Glut Sends Warning Signal to Global Dairy Sector

Swiss dairy farms are facing an unprecedented surplus after the U.S. imposed steep 39% tariffs on Swiss goods, including cheeses — forcing producers to confront excess milk supply and shrinking export pathways. (IP Lait recommended cutting production by 50,000 tonnes — roughly the output of 25,000 cows — to manage the imbalance.

The tariffs have accelerated losses in a sector already wrestling with high production and mature domestic demand. Many dairy farmers in the Jura region reported sending cows for early culling due to reduced cheese orders and rising storage costs.

For India's dairy industry, the scenario serves as a stark reminder: expanding output without matching access to markets and value-addition can trigger systemic risk. As global trade tensions rise and premium segments shift, Indian processors and exporters must focus on creating strategic diversification, strong branding and resilient supply chains — rather than volume alone.

Source : DAirynews7x7 Nov 9th 2025 Omanet