Cremo dairy crisis Swiss milk industry, Digi Mart USA News (Freiburg, Switzerland): Switzerland’s second-largest milk processor, Cremo, is deep in the red, and the situation has consequences for the entire dairy sector. The Freiburg-based company has struggled for years with overproduction, fierce competition and thin margins on products such as milk powder and butter.
Production outages caused by outdated facilities and a major fire at a cheese dairy added to the company’s difficulties. Over the past four years, Cremo has recorded total losses of more than 75 million Swiss francs, with a deficit of about 17 million francs in 2025 alone.
The company has already implemented numerous cost-cutting and restructuring measures. Unprofitable sites have been closed, production processes simplified and parts of logistics outsourced.
However, the hoped-for turnaround has not materialized, and Cremo is now working on a new strategy intended to return it to profitability.
Cremo’s problems extend beyond the company itself. As the second-largest milk processor in Switzerland after Emmi, it plays a central role in the Swiss dairy market.
The company processes about one million liters of milk daily into products including drinking milk, cream, butter, cheese and milk powder.
Around 1,100 milk producers supply Cremo, which is an important buyer for them. Hansjürg Jäger, a lecturer in agricultural markets at the Bern University of Applied Sciences, said Cremo’s role in absorbing surplus milk is particularly significant.
“Thanks to its large production facilities, Cremo can process considerable quantities of milk into butter or milk powder,” he said.
Jäger added that this capacity is crucial when more milk is produced than the market can immediately absorb. “Cremo therefore contributes significantly to keeping the Swiss milk market in balance.”
One of Cremo’s largest suppliers is Bruno Stirnimann from Posieux near Freiburg. His farm, with about 380 cows, produces large daily volumes of milk that it delivers to Cremo.
Stirnimann is closely following his buyer’s economic difficulties, since it would not be easy for a farm of his size to quickly find another processor. Nevertheless, he remains optimistic: “I am confident that Cremo will succeed in returning to a economically successful course with the new strategy.”
Cremo’s challenge now is to permanently reduce costs while optimizing revenues. Whether the new strategy will bring the hoped-for turnaround remains uncertain.
