Lessons from Covid-19: Optimise national supply
According to the Confederation, Switzerland's supply situation is basically good, but supply risks have increased. These are the conclusions drawn by the National Economic Supply in the new National Supply Report. In addition, the Covid 19 pandemic has revealed gaps in crisis preparedness.
The National Economic Supply (NES) ensures that Switzerland is supplied with essential goods and services in the areas of food, energy, therapeutic products, logistics and ICT (information and communication technologies). Over the entire reporting period 2017-2020, the NSO reports that Switzerland's supply situation is fundamentally good (cf. here State Supply Report 2017-2020)
According to the Confederation, however, there are also gaps in crisis preparation that now need to be closed as quickly as possible: the supply of respiratory protection masks and hand and surface disinfectants was critical at times, as demand increased massively within a very short time. For this reason, the WL had already initiated the introduction of a compulsory stockpiling of ethanol in 2020. As an interim solution, a safety stock filled with 6000 tonnes of ethanol is now available.
In its periodic review of stockpiling, the WL will also take into account the experience gained from the COVID 19 crisis, according to the statement. For example, it will reassess the compulsory stocks of medicines. In addition, from 2021 onwards, the aim is to initiate adjustments in the area of foodstuffs. At the same time, measures that can better support energy supply, logistics or ICT in a crisis are to be promoted.
Higher supply risks
As the 2017-2020 State Supply Report shows, supply risks and supply-related events have increased in recent years. Here is a look at the individual areas:
Electricity: In the case of electricity, more and more renewable energies are being used, and in a decentralised manner. This makes the goal of a secure electricity supply more complex and also more vulnerable. Since the shutdown of the Mühleberg nuclear power plant in December 2019, Switzerland has also become even more dependent on electricity imports.
In winter in particular, the peak load cannot be adequately covered by domestic production. More electricity is consumed at this time of year. However, the hydropower plants produce less.
Remedies: Several domestic and foreign developments are making the basic supply of therapeutic products more challenging: these include global corporate mergers, price pressure on products no longer protected by patents, the withdrawal of products from the Swiss market, and the centralization and relocation of production centers to Asia.
Food: The food supply situation in Switzerland is very good. For a good 20 years, Switzerland's degree of self-sufficiency in food has been around 60 percent. Switzerland is therefore dependent on sufficient imports.
Logistics: ICT is playing an increasingly important role in logistics. In the event of a failure, there is an abrupt threat of supply disruptions. All supply processes also depend heavily on the interaction of logistics and energy supply.
Recourse to compulsory stocks
The federal government writes that the WL has a wide range of instruments and measures at its disposal to counter supply bottlenecks. In autumn 2018, for example, navigation on the Rhine almost came to a standstill due to low water levels. The other modes of transport were unable to fully compensate for the transports. For this reason, the Confederation is supporting Switzerland's supply of mineral oil and fertiliser by opening the compulsory stocks.
In the case of therapeutic products, almost 200 withdrawals from compulsory stocks were necessary in the past four years. In the first year of the Covid 19 pandemic, the WL released compulsory stocks of medicines 92 times, mostly for antibiotics and respirators. The WL also initiated other market interventions in 2020 to strengthen the country's supply during the pandemic. For example, it restricted the distribution of medicines in short supply and took targeted measures to ensure that transport capacities could be maintained, as the media release concludes.
Source: Confederation
Support programme for Covid 19 medicinal products
Since the beginning of the Covid 19 pandemic, the Confederation has been supporting the cantons in the supply of important medical goods. To this end, it can also procure medicines for the treatment of Covid 19 patients on a subsidiary basis. In addition to this short-term support, the Federal Council has now also adopted a medium-term strategy with the funding programme to promote the research, development and production of Covid 19 medicines. In this way, it wants to make a contribution to the treatment of people suffering from Covid-19.
The funding programme is intended to set out the basic criteria that apply to federal investments. For example, the funded medicinal products should be able to be made available to patients with a high degree of probability by the end of 2022 and should be particularly distinguished from other medicinal products that are available or will become available in the near future. Funding contributions should only be granted if private financing is not possible or if Switzerland's access to important medical goods could be impeded. The Confederation should receive something in return for the investment (e.g. priority supply). Applications for funding should be examined under transparent, scientific criteria.
The criteria of the funding programme and the application procedure will be published from July 2021. The programme is limited until the end of 2022. Implementation is to be entrusted to an existing organisation that is equipped with the legal structures and familiar with the implementation of funding programmes. The Federal Council will decide in the summer to whom it will award the mandate.
Covid 19 vaccine promotion programme
In order to guarantee Switzerland access to safe and effective Covid-19 vaccines, the Confederation concluded reservation or purchase agreements with potentially successful vaccine manufacturers at an early stage. So far, this strategy has been successful. Last week, the Federal Council defined the vaccine procurement strategy for 2022 and will ensure sufficient supply in accordance with this strategy.
Beyond 2022, the Federal Council will continue to rely mainly on reserve and pandemic contracts and will further intensify its contacts with the manufacturers of mRNA vaccines for this purpose. This approach makes it possible to acquire a diversified portfolio. Technology and manufacturing risks can be minimized, as a flexible sourcing strategy is necessary due to the rapidly evolving new corona mutants.
In addition, a strategy for the future should be developed together with universities and industry on how Switzerland can further improve its framework conditions so that Switzerland is well positioned to provide early capacity in the research, development and production of future vaccines in the event of a next pandemic. In cooperation with interested partner countries, Switzerland could thus contribute to global access to vaccines.
Press release Federal Government
Other topics: Army Pharmacy Caught Off Guard Takes Stock
