The price of dairy products is rising unstoppably in Hungary

In July 2021, Hungary experienced a significant increase in the national average producer price of raw milk by 8% compared to the previous year, reaching HUF 109.08 per kilogram, despite a slight decrease in protein and fat content and a stagnant base price. This rise is attributed to a variety of factors, including an increase in domestic raw milk prices, inflation, and a depreciation of the forint against the euro, which impacted export prices. Additionally, the COVID-19 pandemic has caused fluctuations in the Hungarian dairy market, with changes in consumer prices and panicked purchasing behaviors. Facing high costs and challenges, producers and processors are struggling to maintain efficiency and are exploring ways to pass increased costs along the supply chain. Meanwhile, Hungarian household milk consumption has seen a slight increase from 4.5 to 4.7 liters per person per month between 2010 and 2019, with higher education levels being associated with more frequent dairy product consumption.