Emmi CEO worries about the Swiss economy because of Trump

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• Emmi CEO Ricarda Demarmels is calling for political measures to strengthen Switzerland as a business location in the face of rising costs and exchange rate burdens.
• For Emmi, the strong franc and weak dollar are having a much more negative impact than the US tariffs, which have so far been offset by price increases.
• Despite global challenges, Emmi remains robust thanks to local production and a broad market presence, and recorded organic growth of 8.3 percent in the Americas region.

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In view of the global economic turbulence surrounding the US tariffs, Emmi CEO Ricarda Demarmels has called on politicians in this country to strengthen Switzerland as a business location. For Emmi, the exchange rate effects weigh more heavily than the direct US tariffs.

"As a Swiss citizen, I am concerned because Switzerland has lost a lot of its competitiveness as a business location," said Demarmels in an interview with the news agency AWP. In view of the strong franc and the weaker dollar, Emmi had to accept an exchange rate impact of ten percent. At the profit level, double-digit millions were lost as a result. "This will continue in the second half of the year."

"Costs have risen massively"

"Swiss politicians must now strengthen the location factors and competitiveness," said Demarmels, "because the costs of doing business in Switzerland have risen massively."

The Emmi boss suggests, for example, that Switzerland should reconsider whether the OECD minimum tax for large companies should actually be implemented now that even the USA has opted out. Switzerland also needs to reduce the administrative burden on companies, lower energy costs, find the "right phasing" for climate targets and secure new market access through trade agreements.

Companies in Switzerland that operate internationally ultimately make a major contribution to value creation for the country, said Demarmels. Although they account for only 4 percent of all companies in the country, they generate 25 percent of jobs and over a third of gross domestic product, emphasized the Emmi CEO.

Emmi got off lightly

As far as the direct US tariffs are concerned, Emmi has so far got off lightly. Emmi is well positioned with a decentralized, predominantly local production business model and a well-diversified portfolio across numerous international markets, said Demarmels.

Alongside Switzerland, Brazil and Chile, the USA is one of Emmi's most important markets. The company produces 85 percent of its products locally in the USA. Emmi generates around CHF 700 million in sales in the USA and employs 1,200 people.

Emmi passed on the spring tariff and the August tariff hike to customers one-to-one in the form of price increases. Emmi primarily exports Swiss cheese specialties such as Gruyère to the USA. Sales losses could be offset somewhat with local products. The Americas region grew organically by 8.3 percent in the past six months.