Overview of Hungary's Dairy Industry

The dairy industry in Hungary is a cornerstone of the country's agriculture, playing a vital role in both domestic consumption and international trade. Recent pricing adjustments have seen raw milk prices fall to 41.79 euro cents per kilogram, impacting profitability across the value chain.

Milk Production and Processing

Hungary boasts an impressive annual milk production volume of approximately 1.8 billion liters. Out of this production, around 1.5 billion liters are processed into various dairy products, catering to both the domestic market and international consumers. This capacity reflects the country's strong infrastructure, supporting substantial transformation and value addition within the dairy sector.

Dairy Cattle and Goats

The success of Hungary's dairy industry is underpinned by its livestock, which includes about 330,000 dairy cattle and roughly 100,000 dairy goats. These animals are essential in maintaining necessary production levels to satisfy market demand and ensure product availability.

Production of Key Dairy Products

Hungary's diverse dairy portfolio includes the production of 100,000 tonnes of cheese, 25,000 tonnes of milk powder, and 15,000 tonnes of whey annually. These figures underline Hungary's capability to cater to varied consumer needs across different segments.

Key Dairy Enterprises

The industry is supported by key dairy plants such as Sole-Mizo Zrt., Tolle (Tolnatej Zrt.), and Kuncz Laktóz Szövetkezet. These enterprises are pivotal in driving innovation and efficiency within the market.

Dairy Farms

Crucial dairy farms include Hód-Mezőgazda Zrt., MILKÁDÓ Szövetkezet, and Bau Trans Kft. These farms play a significant role in supplying the raw milk necessary for processing and product development.

Export and Import Activities

On the international trade stage, Hungary exports dairy products valued at approximately 300 million euros annually, with significant markets in Germany, Italy, and Romania. Imports account for about 200 million euros, with primary sources being Poland, Germany, and Austria. This trade balance highlights Hungary's strong presence in the European dairy market.

Recent Developments in the Dairy Industry

One notable development is the partnership between SIG and Sole-Mizo, which aims to enhance production efficiency and technological advancements within Hungary's dairy sector. Despite challenges like the H5N1 avian influenza outbreaks and a recent foot-and-mouth disease case at a dairy cattle farm, the industry remains resilient. Through strategic partnerships and a market-driven approach, Hungary's dairy industry continues to navigate these challenges efficiently. Such issues as foot and mouth disease might raise concerns across Europe, but Hungary's industry is prepared to manage these complexities through strategic efforts.

Bonafarm Group, controlled by a Hungarian businessman, is acquiring FrieslandCampina's Romanian operations. This acquisition is seen as an opportunity for Bonafarm Group to invest in facility capacity and contribute to the Romanian dairy industry development. Meanwhile, Hungary has blocked the proposed acquisition of dairy company Alföldi Tej by an overseas consortium. The Ministry of National Economy in Hungary issued a statement blocking the acquisition to ensure the security of food supply for Hungarian families. The Ministry of Agriculture and the Milk Product Council have supported this decision due to concerns over market disruption and the potential decrease in domestic processing capabilities.

Temporary restrictions have been placed on animal and product imports to Russia due to the bluetongue virus. These restrictions apply to various animals and animal products due to the worsening epizootic situation. In September 2025, Hungary reported its first bluetongue outbreak in 10 years, where the disease also affected cattle. The Hungarian government has intervened to prevent Greek company Hellenic Dairies from acquiring Alföldi Tej Kft. The Ministry for National Economy justified the move by claiming the deal could threaten Hungary's food security. Consequently, the dairy company has now offered its shares to the Hungarian state, with acquisition talks set to commence shortly. Alföldi Tej Kft. significantly contributes to the local dairy industry, processing 270 million liters of raw milk annually and employing over 15,000 individuals.

Modified: 2025/10/14