Capital: Berne
Largest city: Zurich
Population: 7,489,370 inhabitants (2005)
Working population: 4 368 000 (2004)
Surface Area: 41,285 km2

Situation: located in the western Alps; between France to the North and West, Germany to the North, Austria and Liechtenstein to the East and Itay to the South.

Climate: temperate climate, influenced by the mountains and the continent. The average annual temperature is around 7° C (20° C in summer and 4° C in winter), the temperatures drop by 1.7° C every 300 metres. Rainfall varies depending upon the altitude: on the Swiss plateau, the average rainfall is around 915 mm of rain. The higher levels generally receive a lot more rainfall.

Regime: Federal Republic
Government: Democracy Administration: a confederation of 20 districts or semi districts
President: Samuel Schmid (2005)
Executive power: Federal council
Legislative power: Federal assembly (or parliament)
Official languages: German (65% the population, yellow), French (19%, purple) and Italian (3%, green) and Roman (1%, red).

GDP: 357,000 million dollars in 2004
GPD per inhabitant: 130 (European Union average = 100) in 2004
Annual growth: 1.7% (2004)
Currency: Swiss francs (CHF)
Exchange rate (sept 2004) : 1 euro = 1.55 swiss francs (CHF)
Exports: 118,690 million US dollars (that is to say 33.2% of the GPD) in 2004
Imports: 111 240 million US dollars (that is to say 31.1 of the GPD) in 2004

Chief clients: Germany (20.2%); United States (10.5%); France (8.7%); Italy (8.3%); United Kingdom (5.1%); Spain (4%) Chief suppliers: Germany (32.8%); Italy (11.3%); France (9.9%); United States (5.2%); the Netherlands (5%); Austria (4.3%).

The vineyard of Switzerland covers around 15,000 hectares. 8031 hectares are planted with red varieties, 7,211 with white, including 11,000 ha in the French-speaking area, 2,200 hectares in the German-speaking parts and 8,000 in the Italian-speaking area. The district of Valais is the largest winegrowing district with 5,225 hectares, followed by the districts of Vaud (3,875 ha), of Geneva (1,333 ha) and Tessin (1,000 ha).

Switzerland boasts an array of grape varieties of which the most common white grape is Chasselas (called Fendat in Valais), Müller-Thurgau (a mixture of Riesling x Sylvaner and essentially grown in the eastern part of Switzerland) and Sylvaner (also known as Johannisberg). The chief red grape varieties are Pinot Noir, leading with 4,609 hectares under vine, and present in numerous districts. The later ripening Gamay, is the main variety in Geneva and in the Valais area. Tessin is Merlot’s land of predilection. Syrah, a variety from the Rhone is essentially successful in the Valais area.

Switzeralnd also boasts a great diversity of local varieties. Amongst the white varieties, Petite Arvine, only represents 65 hectares under vine. Chiefly in Valais, this great Swiss variety reflects its own true personality. And Amigne, with its 24 hectares planted on limestone offers richness and superb complexity. When it comes to the red varieties, Cornalin only covers 38 hectares, exclusively planted in the Valais area, and offering a unique character.

 There is also Gamaret, a cross between Gamay and Reichensteiner, reflecting a refined and balanced character. In 2004 the varieties the most planted in Switzeraland were Gamaret (+49%), Merlot (+27%), Garanoir (+27%), Syrah (+18%), Petite Arvine (+15%), red Humagne (+14%), Diolinoir and Cornalin (+11%).

Switzerland has around 167,000 producers of alcohol. These producers can be divided into three categories:
- professional producers (around 500)
- agricultural producers, farmers only distilling their products or products in a raw state (60,000)
- small producers, non agricultural producers, making less than 100 litres of pure alcohol per year (1,060,000).

Switzerland produces around 1.1 million hectolitres of wine per year. Last year, the 2004 harvest represented a total volume of 115.9 million litres of wine (+18,9 million litres in relation to 2003, a small year due to unfavourable weather conditions).

The production in 2004 is situated slightly above Switzerland’s national wine consumption the same year - 112.2 million litres. When it comes to this harvest, for the first time, a small majority of red wine (52%) was produced ahead of white wine volumes (48%).

As a result, 60.7 million litres of red wine were vinified compared with 55.2 million litres of white wine. All in all, the consumption of Swiss wine in the national market, represented 4.9 million litres (-4.1%) below the average volume over the past four years.

As Switzerland’s number of domestic wine drinkers are numerous, there is little Swiss wine available for export. But with growing interest for foreign markets, Swiss producers are starting to find better distribution outlets around the world. In 2004, Swiss wine exports reached 1,912,183 litres and 66,055,174 Swiss francs in value; that is to say an increase of 75% in volume and a decrease of 55% in value compared with the previous year. The average export price is situated at 7.50 Swiss francs/litre, thereby placing Switzerland way ahead of other winegrowing countries.

After a period of relative stability in 2002 and 2003, the importation of wine by Switzerland dropped (-3.6) in 2004 ; imports represented 180,5 million litres in volume and 797.9 million Swiss Francs in value. Around 28.5 million litres of white wine were imported, compared to 137 million litres of red wine.

White wine imports increased by 8.1%, that is to say 2.1 million litres. But this was less than in 2002 (close to 31.3 million litres). Thanks to the increase in volume of bulk imports by 14.2%, the bottled white wine market started to stagnate (-0.2%) in 2004. When it comes to red, bottled wine imports were stable (60.4%, whereas bulk wine has dropped considerably (-6.8%), that is to say 5.7 million litres less.

These figures take into account all imported wines. Italian wines are the leading supplier in volume with 44.4 million litres, ahead of France (42 million litres), which is gradually losing ground. In third place, Spain with 28.4 million litres has been constantly gaining market share in recent years.

Switzerland counts amongst the leading wine consumers in the world. Total wine consumption rose to 282.8 million litres in 2004. This represents a decrease of 3 million litres in relation to the previous year.

White wine consumption continued to grow reaching 87.4 million litres (+1.5); whereas that of red wine diminished, falling by 195.4 million litres (-4.5). On the domestic front, the total consumption of Swiss wine fell to 112.2 million litres, that is to say 2.7 million litres less than the previous period (July 1st - 2002 to June 30th - 2003). That of white wine remained stable at 57.5 million litres (+0.3), and that of red wine dropped by 3 million litres settling at around 54.7 million litres.

The consumption of alcohol varies according to the different regions of Switzerland. That of wine is on the decrease in several districts.

When it comes to the three other biggest districts, the situation is variable:
- Valais’share of consumption rose slightly (+0.3), chiefly for reds (+0.3).
- The district of Vaud registered a rise in consumption (+1.1) of white wines after several years decrease.
- The situation of Geneva is more difficult, as global consumption is on the decrease (-1.6), chiefly of white wine.

The most significant fall is that of Swiss reds. Limited supply problems, due to the low volumes harvested in 2003, partly explains this drop. The decrease in wines from Chasselas and Müller-Thurgau doesn’t seem to have an effect on the sales of other Swiss wines from other former vintages.

Communication efforts concerning the potential of Swiss wines made from age-worthy varieties should be maintained, even reinforced, to revive consumption for whites and reds.

The consumption of foreign wines is stable and reached 170.6 million litres (60.2). The rise is significant when it comes to white wines (+1.2) representing some 29.9 million litres. The consumption of reds is on the decrease and stands at around 140.7 million litres (-1.4). If you only take into account whites, growing to practically 23.7 million litres, it has increased by 1.9

compared to last year.

At the end of 2004, the wine stocks of growers-merchants represented some 38 million liters, including 19 million of white and 18.9 million of red. And the imports of industrial white wine rose to a total of 0.7 million litres, whereas the reds maintained their usual level.

The Confederation adopts the laws including special characteristics indicated by each district, and fixes the modalities of application. Winegrowing legislation is in line with international conventions and especially European Union regulations.

The districts thereby adopt their own laws. These are often stricter than federal directives. Since 2002, Switzerland has agreed to a quota of both red and white naturally-made wines (1.7 million hectlolitres) which are allowed to benefit from low customs tariffs. These lower taxes are granted at the border to the first volumes imported. A special importing licence is required to import naturally-made wine for commercial purposes. It is granted by the Federal Office of Agriculture.

- For further information on Swiss Winegrowing Legislation:
Federal Office of Agriculture Viticulture section Mattenhofstrasse
5 CH - 3003 Bern Switzerland
Tel- (031) 322 25 11
Fax - (031) 322 26 34
info@blw.admin.ch
http://www.blw.admin.ch

Federal Office of Agriculture, World Bank, International Monetary Fund, Swiss Winegrowers Association, Government of Quebec, Institute of Statistics of Quebec, United Nations.
Maps and Tables: Office Federal of Agriculture