Hungary's Dairy Industry
The dairy industry in Hungary is a cornerstone of the country's agricultural sector, playing a crucial role in both domestic consumption and international trade. Recent developments have seen raw milk prices fall to 41.79 euro cents per kilogram, affecting profitability across the industry.
Milk Production and Processing
Hungary's annual milk production volume reaches approximately 1.8 billion liters. Of this, around 1.5 billion liters are processed into various dairy products for both domestic and international markets. This capacity underscores Hungary's robust infrastructure that supports significant transformation and value addition within the dairy sector.
Dairy Cattle and Goats
The industry's success is underpinned by its livestock, with about 330,000 dairy cattle and roughly 100,000 dairy goats. These animals are essential in maintaining production levels to meet market demand and ensure product availability.
Production of Key Dairy Products
Hungary produces a diverse range of dairy products, including 100,000 tonnes of cheese, 25,000 tonnes of milk powder, and 15,000 tonnes of whey annually. These figures highlight Hungary's capacity to cater to varied consumer needs across different segments.
Key Dairy Enterprises
The industry is supported by major dairy plants such as Sole-Mizo Zrt., Tolle (Tolnatej Zrt.), and Kuncz Laktóz Szövetkezet. These enterprises drive innovation and efficiency within the market.
Dairy Farms
Significant dairy farms include Hód-Mezőgazda Zrt., MILKÁDÓ Szövetkezet, and Bau Trans Kft. These farms are vital in supplying the raw milk necessary for processing and product development.
Export and Import Activities
Hungary exports dairy products valued at approximately 300 million euros annually, with key 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
A notable development includes the partnership between SIG and Sole-Mizo, aiming to enhance production efficiency and technological advancements. 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. Strategic partnerships and a market-driven approach help navigate these challenges effectively.
The Bonafarm Group is acquiring FrieslandCampina's Romanian operations, aiming to invest in facility capacity and contribute to the Romanian dairy industry. Meanwhile, Hungary has blocked the proposed acquisition of dairy company Alföldi Tej by an overseas consortium to secure food supply for Hungarian families. The Ministry of Agriculture and the Milk Product Council supported this decision due to concerns over market disruption and potential decreases in domestic processing capabilities.
Temporary restrictions have been placed on animal and product imports to Russia due to the bluetongue virus, following Hungary's first outbreak in 10 years. The government has intervened to prevent Greek company Hellenic Dairies from acquiring Alföldi Tej Kft., which processes 270 million liters of raw milk annually and employs over 15,000 individuals.
Investors from Hungary are involved in launching enterprises in Kazakhstan, with plans for three new enterprises. Hungary's successful Holstein breeding experience is increasingly seen as a model for Kazakhstan, reflecting the nation's advanced breeding system.
Hungary is calling for EU intervention amid a dairy price crisis. Agriculture Minister István Nagy highlighted the severe impact on dairy producers and urged the EU for urgent action to address plummeting milk prices. Reports indicate that recalls are underway in Hungary, following contamination issues. The Hungarian government has announced extra national support for dairy producers.
The Hungarian government will provide an additional HUF 2.43 billion in national subsidies to dairy producers facing low purchase prices. This move is part of a broader effort to stabilize the domestic dairy sector, affected by EU-level overproduction and trade conflicts.
Modified: 2026/02/17