Swiss slaughterhouses cut prices for lean animals – farmers criticize breach of gentlemen's agreement

Farmers, however, see this as a breach of an unwritten industry code of conduct. As the report states: "Doch es gilt das ungeschriebene Gesetz, dass sich alle daran halten – ein Gentleman's Agreement, das lange Zeit gut funktioniert hat." This informal agreement had ensured stable reference prices for slaughter animals for years.

An unwritten law breaks down

Among those affected is the meat processor Micarna, which, according to the "NZZ am Sonntag," has cut prices for lean animals. Other major slaughterhouses are also said to have deviated from the agreed price level. The retail sector, with corporations such as Coop, sources a significant share of its meat from domestic production and is therefore indirectly affected by the development.

Kilian Baumann, a farmer and industry observer, criticized, according to the report, that the slaughterhouses were exploiting the farmers' plight. In a hot summer, animals would have gained less weight, which is beyond farmers' control. If the price is nevertheless cut, it hits operations twice: they face higher feed and husbandry costs while at the same time earning lower revenues.

Thomas Balmer of Micarna rejected the accusations according to the "NZZ am Sonntag." The company adheres to standard market conditions and adjusts prices to the actual quality and slaughter yield of the animals. A pure quality differentiation is standard industry practice and not a deviation from the gentlemen's agreement.

Reactions from the industry

The controversy comes at a time when Swiss agriculture is already under pressure. The hot summer of 2026 has reduced fodder harvests in many places and made water supply more difficult. At the same time, production costs are rising while consumer prices for meat have stagnated for months. For many farmers, the current price cut means an additional tightening of the economic situation.

Leo Fankhauser and Andreas Gafner, other industry representatives quoted in the report, called for a return to the agreed reference prices. They see the risk of a precedent being set: if slaughterhouses unilaterally adjust prices when margins are tight or under extreme weather conditions, the informal pricing system as a whole loses reliability.

Davide Elia of Bell also pointed to the legal aspect in the report. Applicable competition rules generally leave room for price agreements among market participants, provided they are transparent. However, the current debate is not about agreements but about the unilateral departure from a jointly supported industry solution.

Outlook for the coming weeks

It remains unclear whether the responsible industry organizations will now intervene. A new round of negotiations between slaughterhouses and farmers' associations on reference prices for the upcoming slaughter periods is possible. Mediation by the retail sector, which has an interest in stable supply chains, is also on the table.

For consumers, prices in stores are unlikely to change in the short term, as retailers calculate their margins independently of producer prices. In the medium and long term, however, the debate could affect domestic production: if farmers come under further pressure, they could scale back production, which would increase dependence on imports.

The "NZZ am Sonntag" announced it would continue to follow the developments. Industry circles expect that the issue of reference prices will also be raised in the agricultural committees of the National Council and Council of States in the coming weeks.