Chocolate maker eyes top-end Chinese market

Since China is most likely to become the world’s largest gourmet chocolate market, Barry Callebaut’s gourmet business in China is busy catering to the needs of chocolatiers, pastry chefs, bakeries, hotels, restaurants and caterers, the company said.

The Barry Callebaut Group, the world’s leading manufacturer of high-quality chocolate and cocoa products for the food industry, has strengthened its capabilities and expanded its offerings to meet the needs of the fast-growing segment of professional users of chocolate in China.

Gourmet products chocolate and cocoa products that are typically used by professionals such as chocolatiers, pastry chefs, bakeries, hotels, restaurants and caterers have fueled the business growth of Barry Callebaut in China which has doubled in volume over the last four years.

According to George Zhang, Managing Director for Barry Callebaut in China, higher disposable income of the rapidly growing middle- to high-income consumers in China will drive the expected growth in the sales of gifts as well as premium and sophisticated gourmet chocolate products in the coming years.

Zhang also said that consumers seek new chocolate trends, for example chocolate with health benefits, new tastes such as green tea flavor chocolate and innovative chocolate forms for a variety of exciting chocolate experiences.

The USD$ 2.8 billion chocolate confectionery category in China is estimated to grow to approximately USD$ 3 .9 billion by 2021.

 

 

Rising energy costs put Australia’s meat processors at risk

Rising energy costs and lack of reliable supply are threatening to push Australia’s red meat processing offshore.

The Australian Meat Industry Council (AMIC) is currently conducting a survey of its members to determine the scale of the problem and help create an energy policy for the industry.

 According to AMIC’s Robert Barker, affordable and reliable energy supply is crucial for Australia’s meat processing sector. Gas in particular is important as a source of reliable energy to maintain the baseload, and for direct input in plant operation.

 Early results of AMIC’s survey have showed that energy costs were up an average of 30 per cent in 2016 when compared with 2010.

Some of the larger meat processors reported additional energy costs of $20 million in the past 12 to 24 months.

“The red meat processing industry in Australia is the largest manufacturer in Australia, supporting over 130,000 jobs, most based in regional areas,” said Northern Cooperative Meat Company chief executive Simon Stahl.

“If Australia wants to stop this industry moving offshore, urgent attention to the cost of manufacturing is required at all levels of government,” he told Fairfax Media.

“Energy is at that critical stage, not only in terms of cost but also continuity of supply. Urgent action is required and serious consideration should be given to taking export exposed meat processing plants off the grid.”

Dairy company reduces costs with label management system

NiceLabel, one of the world’s leading developers of label and marking productivity software solutions has helped dairy company Arla Foods find a standardised label management solution for all of its industrial printers.

NiceLabel’s technology enabled this large food manufacturer to significantly reduce costs and increase label accuracy and productivity.

A critical part of Arla’s brand identity is being able to guarantee freshness and provide their customers with accurate product information, according to a company press release.

However the company needed a single solution with a standardised method of integration between each dairy’s label and direct marking printers and the Manufacturing Execution System (MES).

By using NiceLabel’s label management system, Arla said that it was able to automate printing by implementing a standardized integration with the MES at each dairy. Now, master data flows directly from the MES to the printers, eliminating manual data entry errors, mislabeling and the associated costs.

By introducing centralised label management, Arla have a more transparent label management process that helps them ensure accurate product and production data throughout the entire label printing process.

The company’s IT team now provides 24×7 support to each site, rapidly addressing issues before they result in production downtime while also allowing Arla to remotely monitor all activity and diagnose errors.

“Our customers have come to rely on us for accurate labeling and quality product information. NiceLabel helps us to meet their high expectations and we no longer have to worry about lost revenue associated with mislabeling”, said Torben Hattel, Senior Solution Architect at Arla Foods.

“We’ve definitely seen an increase in productivity thanks to the solution. Our labeling systems run more efficiently. We no longer spend time mitigating manual data entry errors and we’ve been able to streamline support as well.”

 

Beston brings back its Parmesan cheese

Beston Global Food (BFC) has announced that its Parmesan cheese is back in production at Murray Bridge after a five-year hiatus.

Beston this week began production of its first batches of the popular hard cheese destined for consumers across the country, and overseas.

BFC Chief Executive Officer, Sean Ebert, said while the Company’s specialist cheesemakers were currently busy crafting the first batches of Parmesan, they would also soon be moving into other varieties of hard cheese including Gruyere, Raclette and Tilset.

“Since opening our Beston Pure Food factory at Murray Bridge, we have had numerous inquires from our existing customers in Australia seeking locally made European-style hard cheeses. Hence, we have refurbished and returned the former hard cheese line, with a production capacity of 250 tonnes per annum, back into production and brought it to export standard. This has included the installation of a state-of-the-art maturation room and has created additional employment at the factory,” Ebert said.

“There is strong demand for these top quality cheeses in the Australian market.”

“Not only are we creating great cheese but in the process, we are creating jobs. Parmesan production alone required five additional staff while our wider expansion in hard cheese represents 15 new local jobs,” he said.

In June last year, the State Government announced it was providing $2.5 million to Beston for the development of its state-of-the-art cheese processing facility. South Australian- based Beston provides high-end premium foods in the dairy, seafood, meat and health & nutrition areas.

BFC chariman Dr Roger Sexton said that the recommissioning of the hard cheese facility at Murray Bridge was part of the organic growth strategy of BFC and represented another significant step in the further broadening of the revenue base of the company.

 

 

 

Refresh Group acquires bottled water supplier Aquazuro

Refresh Group has acquired Sydney-based bottled water supplier Aquazuro Australia, with the intention to integrate Aquazuro’s bottled water delivery business into its existing operations.

Aside from Neverfail, owned by Coca-Cola Amatil, Refresh is the only other company in the home and office delivery segment of the bottled water market that operates in multiple locations, according to the company.

Refresh expects the acquisition of Aquazuro to increase its revenue and profit, as well as increasing its customer density in Sydney, thereby reducing distribution costs.

The company now has factories in Sydney, Perth, Melbourne, Brisbane, Toowoomba and Kalgoorlie.

Refresh is currently looking into other acquisition opportunities to expand its growth.

Red meat: the next product to be revolutionised by 3D printing

 As the hype around 3D printing continues to grow, red meat has been identified as the next product that could benefit substantially from the technology.

 According to experts, 3D printing could result in added value to current secondary cuts, trims and products by developing “meat ink”. For example, the technology could be used in the aged care sector to create high protein and nutritious meals that can be presented in a range of shapes and sizes, and made more appetising than the traditional pureed food.

 One benefit of 3D printing meat is the ability to produce meat in a more sterile environment than traditional meat production, potentially avoiding contamination. It has also been cited as a potential way to boost food production for the world’s growing population.

 Yet experts have cited challenges; it will be difficult to achieve a genuine meat taste and texture, and there may be some reluctance for consumers to accept 3D printed meat.

 Overall however, there is increasing demand from markets who want personalised approaches to nutrients or textures, rather than the current whole muscle product.

 The 3D Food Printing Conference Asia-Pacific will discuss these issues and more, to be held on May 2 in Melbourne.

 

Doctors cheer at last drinks for VB and Cricket Australia

The Royal Australasian College of Physicians (RACP) has welcomed news that Carlton United Breweries (CUB) has ended its VB sponsorship with Cricket Australia (CA).

The demise of VB’s 20-year sponsorship with CA, estimated to be worth $65 million over the past five years is one of more than 20 alcohol-related sponsorships in Australian cricket.

The RACP is on record as saying that it was “unacceptable that young children are being bombarded with alcohol promotion both at the ground and at home watching on TV.”

This sentiment is shared by the majority of Australians, with over 60 per cent concerned about the exposure of children to alcohol promotions in sport, according to a number of recent surveys.

RACP President Dr Catherine Yelland said, “A generation of Australians have grown up and become accustomed to a sponsorship that has relentlessly pushed its product and left young Australians as collateral damage.”

“Sadly, we know alcohol marketing leads children and adolescents to start drinking earlier and makes young drinkers prone to binge drinking patterns.”

“Sometimes it starts them on a journey that has a lifelong impact. It’s not surprising that the peak age for the onset of alcohol use disorders is only 18 years old.”

 

Australia to triple chilled beef exports to China

 A new agreement between China and Australia means the number of processors allowed to send chilled, or refrigerated and cryovaced beef cuts to China will more than triple.

 Specifically, the number of meat processors permitted to export chilled beef to China will increase from 10 to 36, with another 15 expected to have pending approvals fast-tracked. Currently, Australia is the only country in the world with this market access.

 According to David Foote, managing director of Australian Country Choice, the agreement is good news for the industry after Australia’s rights for chilled beef exports to China were restricted in August 2013.

 In 2013, chilled beef accounted for 18 per cent of total beef exports to China, said Foote. Since the restrictions however, it has accounted for only 7 per cent.

 Global mining and agricultural entrepreneur Andrew “Twiggy” Forrest also praised the new agreement.

 “Now that we can export chilled beef to China, it means Australia can really compete as a food supplier, as opposed to just a live animal supplier,” he told Fairfax Media.

 It is expected that the announcement will not lead to an immediate spike in imports due to record low numbers of Australian cattle, however it is expected to create opportunities for producers once cattle numbers recover over the next few years.

 

Aussie wines set for German markets

 

More than 100 Australian wineries were recently on show at one of the world’s biggest industry events in a bid to further boost surging exports.

The Wine Australia exhibit at ProWein 2017 which was held from March 19 to 21 in Germany featured 500 wines from 76 wineries across 39 varieties and 34 Australian regions, including the premier regions of South Australia.

The Dusseldorf event is considered one of the world’s most important international wine fairs and will include more than 6300 exhibitors from 60 nations.

Australia is the world’s fifth largest wine producing nation in 2016 and is experiencing a strong run of export success on international markets, particularly for premium wine in North America and China.

In the 12 months to December 2016, the value of Australian wine exports grew by 7 per cent to $2.22 billion and volume increased by 1 per cent to 750 million litres.

The average value of exports grew by 6 per cent to $2.96 per litre, the highest level since 2009 driven by a 10 per cent growth in bottled exports, mostly at higher price points.

South Australia is responsible for 50 per cent of Australia’s annual production including about 75 per cent of its premium wine.

Much of this premium wine comes from the South Australian regions of Barossa and McLaren Vale, and South Australian wineries attending ProWein include d’Arenberg, Elderton, Fox Creek, Langmeil.

 

 

 

Chinese supermarkets stop selling Brazilian meat

 

According to a story from the Voice of America (VoA), some of China’s largest food suppliers have stopped selling Brazilian beef and poultry following a scandal over Brazil’s meat processing industry.

While Brazil is the world’s largest exporter of beef, fears over Brazilian meat safety have increased since police accused inspectors of taking bribes to permit the sale of rotten and infected meats.

The announcement from the Chinese food suppliers comes days after China temporarily suspended Brazilian all meat imports.

Hong Kong, Japan, Canada and Mexico have also announced they were stopping major imports of some Brazilian meat.

Brazilian President Michel Temer said the sale of rotten meat was an “economic embarrassment for the country.”

The Brazilian government has so far barred the exports of meats from 21 plants under investigation, while officials have tried to calm consumers by saying the recent investigation has found only “isolated problems with rotten or infected meat”.

However, the reaction by Chinese food suppliers suggests that the investigation could have a big effect on the world’s top meat exporter, said VoA.

Brazil’s trade associations for meat producers warned that the scandal could affect the economy considering meat exports make up 15 per cent of total exports.

 

 

 

Australian researchers find way to stop food mould

West Australian researchers led by Dr. Kirsty Bayliss have discovered how to stop mould growing on fresh food.

Dr. Bayliss will be presenting her technology, titled ‘Breaking the Mould’, a chemical-free treatment for fresh produce that increases shelf-life, prevents mould and decay, and reduces food wastage, in the US.

“Our technology will directly address the global food security challenge by reducing food waste and making more food available for more people,” Dr. Bayliss said.

“The technology is based on the most abundant form of matter in the universe– plasma. Plasma kills the moulds that grow on fruit and vegetables, making fresh produce healthier for consumption and increasing shelf-life.”

Dr. Bayliss’s Murdoch University team has been working on preliminary trials for the past 18 months and are now preparing to start scaling up trials to work with commercial production facilities.

Dr. Bayliss said the LAUNCH Food Innovation Challenge was a “huge opportunity.”

“I will be presenting our research to an audience comprising investors, company directors and CEOs, philanthropists and other influential people from organisations such as Fonterra, Walmart, The Gates Foundation, as well as USAID, DFAT and even Google Food.”

“What is really exciting is the potential linkages and networks that I can develop; already NASA are interested in our work,” she said.

In an interview with ABC Online, she said “Food wastage contributes to a lot of the food insecurity as the US and Europe wastes around 100 kilograms of food per person every year.

“If we could reduce food wastage by a quarter, we could feed 870 million people.”

Dr. Bayliss said the technology also kills bacteria associated with food-borne illness, such as salmonella and listeria.

 

 

New Chilli Beef Pie from Four-N Twenty

 Four-N Twenty is launching its new Chilli Beef Pie, which has been developed for “adventurous eaters who are keen to try a new and exciting flavour”.

 The pie is made from chunks of eight-hour slow-cooked 100 per cent Australian beef, with a spicy chilli gravy, wrapped in a golden pastry.

 “Chilli has been identified as one of the key condiment flavour trends for 2017 and beyond,” said Four’N Twenty marketing manager, Mario Matchado.

 “Creating a spicy chilli version of our eight-hour slow-cooked Real Chunky Pie is sure to prove a winner with pie lovers this winter. So fire up your taste buds, the Four’N Twenty Chilli Beef Pies are hot!”

 The Chilli Beef Pie will be launched in selected petrol and convenience stores nationally from April.

 

 

Tumeric-rich Arkadia Golden Latte released

Arkadia Beverages has released a blend of high of turmeric, spices and organic panela sugar and called it Arkadia Golden Latte.

This turmeric blend is designed to be ready to drunk with hot or cold milk.

With no added dairy, vegan friendly and gluten and caffeine free, Arkadia Golden Latte is claimed to imbue the natural benefits of turmeric – often referred to as the most powerful herb on the planet for helping to fight a range of diseases.

Bellamy’s investors in class action

A shareholder class action against troubled infant formula supplier Bellamy’s has been filed in Victoria to give investors try try and claw back some of their losses.

Law firm Maurice Blackburn lodged the action in the Federal Court in Melbourne on Tuesday on behalf of aggrieved investors who bought shares between April 14 and December 9 last year.
It will be a new challenge for Bellamy’s brand new chairman, Rodd Peters, who was appointed after most of the board resigned or were dumped in a recent shareholder backlash.
The Tasmanian company has suffered a massive plunge in share price and flagged a significant drop in sales in China, and twice downgraded its full-year earnings forecast.

The rebel shareholders who dumped the board at a fiery meeting on February 28 said a turnaround would be complex.
But they said they had a plan to address problems related to product distribution and pricing in China.
Maurice Blackburn principal Ben Slade said the class action was a chance for investors to seek some justice.
“We’ve put together a comprehensive set of pleadings that we’ve now filed with the court, and we are confident that will give aggrieved shareholders the best chance possible of achieving financial redress for some of their losses,” he said in a statement.

Australian fruit destined for Chinese retailers

Winha Commerce and Trade International, the Australian paddock-to-plate Chinese retailer and wholesale food company, has announced that it will use its participation in a new Australian agricultural research centre to help create new products for the Chinese market.

Last month Winha announced it would be a foundation partner in Ausway College to be created in Deniliquin, which aims to become Australia’s leading agricultural research facility in Australia. Winha hopes to ensure that Australian agricultural producers can develop products that will be sought after by Chinese consumers.

“China is the world’s top fruit consuming nation, but at the moment not all Australian fruit is represented in the country. We need to ensure there are more pears, plums, mangos and other specialised fruits like star fruit created and produced for the Chinese market,’’ said Winha Chairman, Jackie Chung.

“Chinese consumers love the quality of Australian produce, but they also have slightly different tastes and likes to Australian consumers, so we must work with Australian fruits producers to create the right looking and tasting fruit to sell into China,’’ he said.

To illustrate its intentions to continue to promote Australian food in China, Winha has also announced it will import locally made Crystal Nest, Australia’s finest bird’s nest, into China.

Crystal Nest founder James Liew said: “We are delighted to be associated with Winha and we are excited to take our quality Australian product to China.’’

Chinese families who appreciate the reported health benefits of bird’s nest are willing to pay up to $US60 a bowl for the product – making the raw bird’s nest one of the most expensive food items in the world.

Australian owned and operated Crystal Nest sells its bird’s nest product all around Australia and now with the help of Winha (and its chain of retail outlets and enormous customer reach in China), Crystal Nest has found the perfect distribution channel into China.

Winha congratulates Crystal Nest for the extra care it puts into the handling and cleaning of its bird’s nests, ensuring it exceeds the highest global quality standards.

Bird’s Nest Soup is considered a delicacy amongst the Chinese upper classes.

Food industry penalty rate change applauded by business

The Australian Industry Group has welcomed today’s Fair Work Commission (FWC) Penalty Rates Decision.

“The Commission has accepted Ai Group’s evidence and arguments to re-set penalty rates in the fast food industry to better align them with the characteristics and needs of 21st century workplaces,” Ai Group Chief Executive Innes Willox said.

“Ai Group represented the fast food industry in the case.  A great deal of evidence was presented from Ai Group members, McDonalds and Hungry Jacks, and from relevant experts.”

“A very high proportion of employees in the fast food industry are young people who have study commitments during normal business hours.”

The Commission accepted Ai Group’s evidence that young people often prefer to work in the evenings and on weekends, and that many prefer to work on Sundays rather than Saturdays.

“In the fast food industry, weekends and evenings are peak times. Regular business hours have little relevance to businesses in the fast food industry and, therefore, penalty rates that were designed many decades ago around regular business hours need to be re-set.”

“In the Decision, the Commission has recognised that existing Sunday penalty rates in the fast food industry are not fair for employers and no longer relevant.”

“The new penalty rates will be phased in over at least two years to reduce the impact upon employees.”

“The five-Member Full Bench, headed by FWC President, Justice Iain Ross, made their decision on penalty rates in the fast food industry after a case which continued for over two years. The Full Bench carefully weighed up all the arguments and evidence and arrived at a fair and sensible outcome.”

“What is important now is that the decision by the independent umpire is implemented as soon as possible, and that all parties accept the outcome,” Willox said.

Donut King tries a little magic with new store

Donut King has launched a new store concept, which it claims takes its cinnamon doughnut to new heights.

The company’s new DK Magic store design pays homage to the brand’s most popular product by focusing solely on warm donuts, paired with a hot drink, milkshake or bottled drink.

“In addition to original cinnamon, customers are now able to choose from five…new sugar flavours,” says General Manager Nicholas Brill.

Australia’s first Donut King DK Magic store opened in Toowoomba.

 Franchise Partners Nathan and Pauline Dwight said the concept has been well received by locals.

From the moment we opened, doughnuts have been running hot off the shelves – pun intended – and customers are having a lot of fun with our new dust flavours,” says Pauline.

Top 5 cybersecurity trends for 2017 for food companies

CyberArk’s Top Five Security Predictions for 2017 are:

1. The Silent Attack on Information – Complete Loss of Trust

The integrity of information will be one of the biggest challenges global consumers, businesses and governments face in 2017, where information from previously venerated sources is no longer trusted. Cyber attacks won’t just focus on a specific company, they’ll be attacks on society designed to eliminate trust itself.

We’ve seen information used as a weapon and propaganda tool in the 2016 U.S. election cycle, but this will move to the next stage where information can no longer be trusted at all. Attackers aren’t just accessing information; they’re controlling the means to change information where it resides, and manipulating it to help accomplish their goals.

For example, consider how the emergence of tools that allow for greater manipulation of previously unquestioned content – like audio files – could lead to increased extortion attempts using information that may not be real, or grossly out of context. It will be easier than ever to piece together real information stolen in a breach with fabricated information to create an imbalance that will make it increasingly difficult for people to determine what’s real and what’s not.

2. Cloudy with a Chance of Cyber Attacks

Cloud infrastructure and the proliferation of cloud-based services have proven to be game changers for business. The benefits of the cloud have not gone unnoticed by the dark side either.

Much like how cyber attackers are channeling the power and insecurity of IoT devices to launch massive DDoS attacks on scales previously thought unachievable, attackers will increasingly use the cloud to ramp up production of attack tools.

With the addition of available computing power and agile development capabilities afforded by the cloud, we’ll see new attack tools that are exponentially stronger than previous iterations, we’ll see attacks that are stronger and more devastating, and ultimately, because attacks are raining from the cloud, attribution will become nearly impossible. This will also increase the agility of attackers – a strategic advantage that they currently hold over organisations.

3. Self-Learning Cyber Attacks

The year 2016 was marked by tremendous progress in the field of artificial intelligence (AI) and subsets of the technology such as machine learning, machine intelligence, deep learning and more.

In the field of cyber security, hundreds of companies are working to incorporate AI and machine learning into their technologies to predict, prevent and defeat the next major cyber attack.

As we’ve seen with other technologies, as AI becomes commoditised, we can expect cyber attackers to take advantage of AI in a similar way as businesses. Much like 2016 saw the first massive IoT-driven botnet unleashed on the Internet, 2017 will be characterised by the first AI-driven cyber attack.

These attacks will be characterised by their ability to learn and get better as they evolve. Think about “spray and pay” ransomware attacks that get smarter, and more targeted about what information is held hostage, and what to charge for it. This will transform the “advanced attack” into the common place, and will drive a huge economic spike in the hacker underground. Attacks that were typically reserved for nation-states and criminal syndicates will now be available on a greater scale.

4. Data Privacy and Pricing Structures

The efforts on consumer data-conditioning are almost complete – consumers know that private information is a commodity they can trade for better service. We’re beginning to see this in the insurance market, where drivers are giving up driving habits, location, destinations and PII to get better rates.

We expect that more companies will take this approach with online data as well and use cyber security fears and concerns over privacy to drive pricing structures.

Consumers will increasingly be faced with a data conundrum – provide more personal information for basic service, or upgrade and spend more money on premium services that require less personal information and provide greater levels of security.

In parallel, small and midsize organisations that have been ‘priced out’ of adequate security options, particularly against threats like ransomware, may also be able to make trades for better protection. In the meantime, the emergence and greater adoption of automated security solutions will help close the gaps between available skills, budget and protection.
5. The Agile Enemy – Hacker Collaboration

Unlike private business and government organisations, cyber criminals are not bound by IP, data privacy, budgets or other concerns. We expect to see hacktivists, nation-based attackers and cyber-criminals accelerate use of the tools used to learn from each other’s attacks – and identify defacto best practices to emulate them on broader scales.

Agile approaches to spur greater black hat collaboration will enable attackers to ‘improve upon’ existing malware and viruses like Stuxnet, Carbanak and most recently Shamoon, to unleash a new wave of threats.

These more dangerous attacks will put pressure – potentially regulatory or merger and acquisition related – on public and private organisations to step up collaboration and prioritise ways to incorporate intelligence gained from these attacks into new innovations meant to combat cyber threats and beat the attackers at their own game.

Norco leads with domestic violence leave

According to the ABC, In what has been described as a landmark reform, New South Wales dairy cooperative Norco has introduced paid domestic violence (DV) leave for its employees.

Norco chief executive Brett Kelly said it sends the right message on an important social issue.

“You need to look after your employees and it is really important that we have the environment that people can feel safe and an employer that really does care,” he said.

The 121-year-old farming cooperative will now provide three days of paid leave for its workers experiencing domestic violence to access medical appointments, legal proceedings, and other matters, said the ABC report.

The Australian Manufacturing Workers Union helped negotiate the deal alongside the meatworkers union and said it was a landmark decision and particularly significant to occur in the food manufacturing sector where shifts were more regimented.

Nestle finds life is sweet with Chocolate Law subsidy

Nestlé and other food manufacturers will receive the same levels of export subsidies for using milk and cereals from Swiss farmers next year.

The government wanted to trim Chocolate Law payments by CHF26.7 million but parliament voted to maintain the current level of nearly CHF95 million ($93.8 million).
The decision is seen as a victory for the powerful food industry and farming lobby groups. So what is the Chocolate Law, how did it come into existence and how long can it keep going?
The Chocolate Law
The so-called Schoggigesetz (or Chocolate Law) was introduced in 1974 to compensate Swiss food exporters for the high price of Swiss agricultural goods. Milk and wheat are more expensive to produce in high price Switzerland while high custom duties curtail cheaper foreign imports.
The Swiss food manufacturing industry accounts for around 10% of all Swiss-produced cereals and 7% of milk. Its lobby group estimates that companies have to pay two to three times (or CHF130 million) more for agricultural raw materials than their foreign competitors.
The likes of Nestlé and Lindt & Sprüngli therefore receive state compensation for food products they export broad.

What’s new?
The exact amount of these food export subsidies is open for debate each year. The World Trade Organisation (WTO) insists that they should be capped at CHF114.9 million per annum. But state coffers rarely offer anything like that amount.
Between 2010 and 2014, the payments were around CHF70 million. The Swiss National Bank’s decision to scrap its franc-euro cap in January 2015 put yet more pressure on exporters, so the Chocolate Law pot was raised to around CHF95 million.
The government wants to cut expenditure, so recommended a return to CHF70 million from next year. Following intense lobbying, parliament has rejected any cuts in the subsidy.

Great news for Nestlé & Co
In the short-term, yes. The problem is that WTO pressure finally forced Switzerland to concede defeat last year. It agreed then to phase out the subsidy completely by 2020.
To complicate matters, a “Swiss Made” law will come into force on January 1, 2017, compelling manufacturers to use local produce if they want to use the prestigious “Made in Switzerland” label.
Food manufacturers say they won’t be able to continue producing in Switzerland unless a new solution is found.

 

From https://www.swissinfo.ch