Our Efforts for Consumers
The Economic Policy Management Division again campaigned at a political level for the interests of consumers, and did so successfully.
Swissness consumer conference
Migros also campaigns for consumers at a political level. For this reason, it holds a consumer conference every year. In 2010 it was devoted to the controversial topic of Swissness. The legislative project, which aims to regulate the future use of the Swiss cross and the label of origin 'Switzerland', is progressing very slowly. Well-known figures from politics, business and consumer groups presented their views on the topic of the origin of Swiss products.
Greater product variety, thanks to Cassis de Dijon
The Cassis de Dijon principle has been in force since 1 July 2010. Migros campaigned strongly for this opportunity, which reduces technical trade obstacles to a minimum. It prevents foreign companies from demanding higher prices for identical products than in other countries due to slightly different standards in Switzerland. Licensing, rightly, is a requirement for food. If the Swiss Federal Office of Public Health grants such a licence, it simultaneously applies as a general permit. It allows domestic food manufacturers to produce goods in accordance with EU standards. For instance, Migros produces two fruit syrups in accordance with the Cassis de Dijon principle. The new range is hugely popular with customers. Migros's industrial businesses are continuing to monitor in what form the production of these products is practical. This is preferable to the simple import of products from the EU, because value creation remains in Switzerland.
For our customers, the Cassis de Dijon principle has major benefits: the product range is broader. Thanks to clear labelling, our customers can still obtain information on a product's ingredients. Also, the high Migros standards continue to apply.
Standard rate - a sham package
The Federal Council wishes to introduce a standard VAT rate of about 6.5%. The reduced rate for foods (2.5% as of 2010) would therefore no longer apply, resulting in milk, meat, vegetable and bread becoming more expensive. Consumers would as a result be punished two-fold, because they already pay significantly more than consumers abroad for products like meat due to the high level of Swiss agricultural protection. Migros has been campaigning to stick with the reduced rate for a long time. The National Council decided at the end of 2010 that the Federal Council must create a new model with two instead of three rates. The reduced rate will therefore continue to apply.
Agricultural agreement, quality strategy
After a difficult year in 2009, there was a constructive climate between Migros and representatives of the agricultural sector in 2010. Migros is committed to better cooperation along the entire value-added chain in the foods sector and therefore supports the Federal Government's quality strategy. With this strategy, the Swiss agricultural and food industries are to respond to the planned opening of the markets. From Migros's perspective, this is a good way as that is precisely its approach with its differentiation strategies (M-Bio, TerraSuisse, AdR etc.) . With its strong backward integration thanks to its powerful industrial businesses and its high quality requirements regarding production and sustainability, it lives the core values.
Although negotiations on the agricultural agreement between Switzerland and the EU are still ongoing, a partial success has been posted: last summer Parliament passed the balance-sheet provision to finance accompanying measures, which should cushion the opening-up process.