The head of Switzerland's fresh produce trade association Swisscofel has the warned the trade that prices for fresh fruit and vegetables are coming under increased pressure as a result of a range of different factors.
Speaking at this week's Swisscofel annual general meeting in Bern, association president Jacques Blondin revealed that low euro and dollar rates against the Swiss franc, as well as increasing competition in the country's retail market from discounters such as Denner and Aldi, had compounded seasonal fluctuations in supply due to weather conditions to send prices downwards.
He also underlined the importance of encouraging the general public to appreciate better the value of fresh produce and the low prices charged in relation to other products.
'Although our products are considered as essential for a healthy diet, not all consumers in Switzerland and Europe are willing to pay a fair price for them,' Blondin argued, echoing recent analysis by European fresh produce association Freshfel Europe, in which the group stated that consumers in Europe needed to realise that fresh produce prices were significantly lower than other food categories.
The recent fall in fruit and vegetable prices in Switzerland has had a dramatic impact on the trade, Blondin said.
According to analyst Planet Retail, Coop Schweiz and Migros, the biggest players in the Swiss market, have been dropping their prices and increasing the number of private labels they sell over the past three years as they bid to maintain market share.
'For us this has the following effects: a reduction in revenues for all industry players; a decrease in margins for almost everyone; and fragility in the production and wholesale sectors.'
He added: 'The average index of retail sales in the first quarter of 2011 was well below the norm and has never been so low in Switzerland. This is true both for discount sales and for conventional sales.'
Austrian nutritionist Hanni Rützler, a guest speaker at the meeting, predicted there could be important changes to the way consumers viewed fresh produce over the coming decade.
'The desire for enjoyment will overtake the desire simply to eat,' she suggested. 'In the future, healthy eating and an enjoyable meal will be the same.'
