Hardly any figures on the raw materials industry in Switzerland – what is behind it?
Glencore and Co. are becoming increasingly important for the local economy. How strong is unclear, the federal government does not collect any data. One reason: the authorities shift the responsibility to each other.
Half of the oil trade goes through Switzerland: tankers are waiting to be unloaded.
Foto: Getty Images
Glencore, Vitol or Louis Dreyfus are the names of the companies that supply the world with oil, coal, copper or grain from Switzerland. They make Switzerland an important hub in international commodity trading. But how important are they actually?
For years it has been said that around 900 oil, agricultural and metal dealers with around 10,000 employees are active in Geneva, Zug and Ticino. Around half of the coffee traded worldwide, global palm oil consumption and a third of the cocoa traded are said to pass through Switzerland.
Beyond that, there is surprisingly little information. The Federal Council decided a year ago that it wanted to take a closer look at the industry. “The goal is a reliable data basis for Swiss commodity trading that can be compared over time,” so the union at that time. Several departments have been commissioned to collect reliable data. But little has happened since then.
Big gains, big risks
This shows the one published on Wednesday Raw materials report of the Federal Council. It says: “Due to the leading role played by Swiss commodities trading, there is a rapidly growing public interest in the importance and activities of Swiss commodities traders.” The reason for this is clear; these transactions entail considerable risks, but politicians cannot make well-founded decisions without data.
That would be important. Because: “The raw materials sector continues to face major challenges, including in the areas of human rights, corruption and the environment.”
“Switzerland is unwilling to finally adequately supervise the high-risk commodity trading sector.”
The non-governmental organization Public Eye criticizes that the federal government still has hardly any data on the industry. “This blind flight shows that neither the Federal Council nor Parliament are willing to finally adequately supervise the high-risk sector of commodity trading. Given the growing economic importance of the sector, this is as incomprehensible as it is dangerous.”
According to the report, the war in Ukraine has further increased the need for information. The conflict has led to upheavals on the commodities markets – Swiss commodities traders have in turn benefited from the price shocks.
In the commodities report, he admits that the federal government has a blind spot here: “In particular, the need for reliable data on the value added generated by Swiss commodities traders and the trade flows they initiate cannot be satisfied at the moment.”
Industry flourishes, authorities hesitate
It is clear that the figureheads of the industry are doing extremely well at the moment. The resource group Glencore recently reported a record profit of 17 billion dollars, more than triple the previous year. Commodity trader Trafigura doubled profits to $7 billion. According to Reuters, oil trader Vitol made around $4.5 billion in the first six months of the last fiscal year.
But why is Switzerland still flying blind?
The responsible offices blame each other for this. For example, the Federal Statistical Office has a lot of data on numerous aspects of Switzerland – but apparently only a few when it comes to commodities trading. Not enough, says the office. It would first have to collect data itself. “We have tested various options on an experimental basis. The administrative data does not seem sufficient to provide an answer. Therefore, a direct survey of the actors would be necessary, »said a spokesman.
But that would cost, and these costs would have to be borne by the responsible office, according to the Federal Statistical Office. In this case, that is the Federal Department of Economics, Education and Research (EAER).
“The question of costs is important, especially in times of tight budgets.”
The office does not comment on this itself, but lets the State Secretariat for Economic Affairs answer. “Various proposals about the scope of data collection and its financing are currently being discussed.” The Federal Council will then decide.
Where should the costs for this be incurred? At the responsible EAER or at the Department of the Interior, to which the Federal Statistical Office belongs? “The question of costs is important, especially in times of tight budgets,” said the Seco spokesman. The Federal Council also has to decide on this.
The earliest dates are 2025
Regardless of which procedure the Federal Council decides on, the Federal Statistical Office, the national competence center for commodity trading, will be responsible for collecting statistical data on commodity trading, according to Seco.
However, it is already clear that some expectations cannot be met, for example with regard to the up-to-dateness of the data. “As with other statistics, the collection of data and their publication takes time – up to 20 months,” said a Seco spokesman.
If the Federal Council were to make a decision now, data would not be available until 2025 at the earliest.
So there is no quick remedy in sight, until then only estimates remain. For example that of the Business Cycle Research Center of the ETH Zurich (KOF), reported in this newspaper. According to her, merchanting already accounts for 8.5 percent of Switzerland’s gross domestic product (GDP). Twenty years ago it was less than 1 percent of GDP.
This corresponds to a doubling in ten years. For comparison: That is around three times as much as tourism as a whole with its around 160,000 employees and almost as much as banks and insurance companies together.
Whereby one does not grope in the dark in these two sectors.
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