Flour will be more expensive in Hungary

Published Jan 11, 2021

Tridge summary

The President and CEO of Hajdú Gabona Zrt., Zoltán Lakatos, has announced that the flour mills in Hungary are experiencing difficulty in covering the cost of good quality wheat for bread, with only 56 thousand forints covering the cost of tons of wheat. This has led to a necessary price increase of 7 to 10 percent for bread, as 75-80 percent of the purchase price of flour is spent on wheat. The milling industry's low profitability is attributed to price competition and low capacity utilization, despite industry concentration. The severe drought and rainy period in Europe have also negatively impacted wheat yields, leading to a deficit and increased export demand, despite only 30 percent of Hungary's five million tonnes of wheat meeting food grade standards.

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

Original content

According to MTI's report, Zoltán Lakatos, President and CEO of Hajdú Gabona Zrt., Told the World Economy, tons of good quality wheat, but the current flour mills cover only 56 thousand forints of wheat. Because bread grain has been more expensive for months, mills are forced to raise prices by 7 to 10 percent. 75-80 percent of the purchase price of flour goes to the purchase price of wheat. Without a price increase, the industry would not be able to withstand this year, and if wheat continues to rise in price, another flour increase could follow around April. The planned increase in the transfer prices of the milling industry is no more than HUF 6-7 per kilogram, Zoltán Lakatos added. Of course, this will be a greater burden on consumer prices. According to the CEO, the low profitability of the milling industry is partly due to price competition resulting from low capacity utilization. Although concentration in the industry has continued in recent years, capacity utilization is ...

Source: Napi Gazdasag