SWITZERLAND – Emmi has reached an agreement with its milk producers that will see the introduction of a price splitting system on 1 May 2004.

The system anticipates a split into a basic price for the protected dairy products and powder area (70% of Emmi’s milk quantity) and another price for the liberalised cheese sector. The extra price is three euro cents per kilogram lower than the basic price.

The agreement has been recognised by both sides as a potentially beneficial reaction to the liberalisation of the milk market, without losing any market share. Emmi said that this would ensure that the milk industry remains competitive.

Also, the agreement is said to accommodate all those who do not want to see a drop in price in the protected area.