The recent announcement of the impending closure of Blattmann Schweiz AG sends a sobering message to the global agri-food industry. Founded in 1856, the company was Switzerland’s sole producer of vital food ingredients like native wheat starch and glucose syrup, which are essential in confectionery, baking, and ice cream production. Despite this strategic role and a history spanning 165 years, a combination of macroeconomic shocks and a critical shift in trade policy proved insurmountable, leading to the loss of 28 jobs and the end of domestic production.
The company’s downfall was not due to a lack of demand but a catastrophic compression of margins from multiple sides. The initial blows came from the COVID-19 pandemic, which disrupted global supply chains, followed by the severe spike in energy prices after the war in Ukraine began. As Board President Giulio De Lucia noted, European competitors received government energy subsidies, placing Swiss industry at an immediate disadvantage. However, the fatal blow was a Swiss customs decision in December 2023 regarding the import conditions for soft wheat, the primary raw material for their starch.
This policy change caused the price of their flour to skyrocket by nearly 60% overnight. This created an impossible competitive environment: while foreign competitors could export finished starch and glucose into Switzerland with minimal tariffs, Blattmann was crippled by the cost of its own raw materials. A subsequent temporary exemption to import flour duty-free in mid-2024 came too late; the company’s financial situation was already irreparable.
This event highlights a critical vulnerability. As De Lucia stated, the closure makes the Swiss food industry dependent on imports for these specialty ingredients, a risk acutely demonstrated by fragile international supply chains during the pandemic. According to a 2023 report by the FAO on global food security, disruptions in trade for key processing inputs can have cascading effects on national food production capabilities and price stability.
The collapse of Blattmann Schweiz AG is more than a corporate failure; it is a cautionary tale for agricultural policymakers and processors worldwide. It underscores the delicate balance required in trade and agricultural policy, demonstrating how a single regulatory change can erase decades of industrial capacity. For farmers, it highlights the risk when a major domestic processor disappears, potentially reducing market options. For the wider industry, it is a powerful reminder that food security extends beyond raw commodities to include the processing capacity that transforms them into essential ingredients. Ensuring a resilient agri-food system requires policies that holistically support the entire chain—from field to factory.
