Overview of Hungary's Dairy Industry

The dairy industry in Hungary plays a crucial role in the country's agricultural sector, significantly contributing to both domestic consumption and international trade. Challenges such as declining milk prices and disease outbreaks have been met with ongoing innovation and expansion, maintaining the industry's strength.

Milk Production and Processing

Hungary produces approximately 1.8 billion liters of milk annually. The country has a well-developed processing infrastructure, with about 1.5 billion liters handled to produce a variety of dairy products. However, the industry faces profitability challenges due to a decline in raw milk prices, which have dropped to 41.79 euro cents per kilogram.

Dairy Cattle and Goats

The industry relies on about 330,000 dairy cattle and approximately 100,000 dairy goats. Hungary's overall cattle population is around 873,000 head, including 406,000 cows and 267,000 designated as dairy and mixed-use cattle.

Production of Key Dairy Products

Hungary's diverse dairy sector produces 100,000 tonnes of cheese, 25,000 tonnes of milk powder, and 15,000 tonnes of whey annually, catering to varied consumer needs.

Key Dairy Enterprises

Major players in the Hungarian dairy market include Sole-Mizo Zrt., Tolle (Tolnatej Zrt.), and Kuncz Laktóz Szövetkezet, which drive innovation and efficiency in the industry.

Dairy Farms

Significant dairy farms such as Hód-Mezőgazda Zrt., MILKÁDÓ Szövetkezet, and Bau Trans Kft. are crucial in supplying raw milk for processing and product development. The industry is characterized by a concentration of production on large farms, many of which have been privatized from former agricultural cooperatives.

Export and Import Activities

Hungary exports dairy products valued at about 300 million euros annually, with major destinations including Germany, Italy, and Romania. The country imports approximately 200 million euros worth of dairy products, mainly from Poland, Germany, and Austria.

Recent Developments in the Dairy Industry

Recent developments include a partnership between SIG and Sole-Mizo for enhanced production efficiency. Despite challenges such as H5N1 avian influenza outbreaks and a foot-and-mouth disease case, the sector remains resilient. Strategic moves include Bonafarm Group's acquisition of FrieslandCampina's Romanian operations. Temporary import restrictions to Russia were implemented following a bluetongue virus outbreak. Hungarian investors are expanding into Kazakhstan, leveraging successful Holstein breeding experiences. Amid a dairy price crisis, Hungary has advocated for EU intervention and announced HUF 2.43 billion in additional national subsidies to support producers. Recalls of Aptamil and Cow & Gate infant milk products are underway due to potential contamination concerns.

Ecolab Seminar

An international seminar by CID LINES, an Ecolab company, is set for April 20–21, 2026, at the Courtyard by Marriott Budapest City Center, focusing on improving dairy production efficiency.

Current Industry Challenges

The Hungarian dairy sector is under pressure due to sharply declining milk prices over the past five months. Many farms operate at a loss, facing high energy, labor, and operational costs. The Hungarian market's dependency on European developments leads to oversupply, further increasing price pressure.

Regional Cooperation

As part of the Visegrad Four countries, Hungary seeks a unified position on agricultural policy. Premier Robert Fico aims to collaborate on agricultural policy with other Visegrad Four countries, including Hungary. The Veszprém facility plays a pivotal role in TMICC's European operations. The modernization of the Veszprém facility in Hungary is part of TMICC's strategy to enhance its global supply chain and increase automated production output to 230 million ice cream units annually.

Market Prices

Hungary’s average raw-milk producer price increased by 1.7% in August, reaching 128.57 forints per kilogram. The August export price for raw milk was 141.86 forints per kilogram, 5% above July’s level. Milk collection inside Hungary continued to contract, with dairy companies purchasing 102,394 tonnes of raw milk in August.