Hungary enforces mandatory discounts on poultry

Published 2023년 6월 12일

Tridge summary

Hungarian prime minister, Viktor Orban, introduced mandatory price cuts on 20 basic food items for large supermarkets starting from 1 June, in an effort to combat food inflation. These retailers are required to offer weekly discounts of at least 10% on food staples, based on the lowest price from the past 30 days. This measure, in place until 30 June, follows earlier price caps on various food items, including chicken breasts, and is expected to be extended in the latter half of the year. Despite concerns from retailers about significant financial losses and the need to restructure supply chains, the government insists that its price control measures have been effective. However, data shows that food prices in Hungary have surged by 42.6% year-on-year in March, leading to a drop in sales of 10.3%.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

From 1 June, Hungarian prime minister, Viktor Orban, has imposed mandatory price cuts on 20 basic food items, including poultry, by large groceries in a move called to tackle food inflation in the country in addition to food price caps. Under the plan, big food retailers are obliged to offer weekly discounts on food staples of at least 10%, compared with the lowest price offered in the previous 30 days. This is not the first step in regulating food prices. In January 2022, the Hungarian government-imposed price caps on various food items, including chicken breasts. The authorities repeatedly prolonged the policy by adding new products to the list, the last time in April 2022. The measure is now designed to last until 30 June, though there is confidence among market players that the food price capping will continue in the second half of the year. The introduction of mandatory discounts came as a surprise for food retailers who are now assessing the financial impact of that measure, ...
Source: Poultryworld

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