Hungary: Supply problem in the flour market

Published 2021년 8월 18일

Tridge summary

Hungary has seen a successful harvest of bread cereals, with an average yield of 6 tonnes and 80% being food grade. However, the mills are under stress as producers are withholding sales or demanding to delay discussions until after January 1. The sown area of winter wheat has decreased, and the market is struggling with record high prices due to increased demand from the feed industry and a decrease in production last year attributed to COVID-19. The mill industry is facing challenges such as rising costs, including minimum wage, fuel, and electricity, which are leading to an inflationary spiral. As a result, it is recommended that the price of flour per kilogram should increase by a maximum of HUF 2 within the next two months to maintain profitability.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The average yield is 6 tonnes from the bottom, we harvested about 4.9 to 5 million tonnes of bread cereals this year - about 80 per cent of which is food grade. Now there was no fungal infection, no toxin production. In this respect, the 2021 harvest is unparalleled in its kind. While we finally got a big crop from an unprecedentedly small area of winter wheat, the mills were in a distressed situation. Growers either don’t want to sell the wheat at all for what they are offering now, or they ask to talk about the business only after January 1, saying sales are not important to them right now. Zoltán Lakatos, - It would be good if we could blindly trust our statistics, but we are far from that now, because of the 920 thousand hectares of winter wheat reported in May, only 846 thousand hectares remained for July. There is nothing to explain this loss of 74,000 hectares in today’s digital world. It would be good if we could say accurate data on the sown area as early as December. Yet ...

Source: magyarmezogazdasag