Despite the Covid pandemic, Hungary's dairy sector has seen growth with an increase in milk production, self-sufficiency in milk and dairy products, and value added to the industry. The government's support has aided in the modernization and creation of cattle places, contributing to the sector's growth and efficiency. However, the sector faces challenges such as rising production costs due to factors like feed and packaging prices, wage increases, and energy costs. The number of smallholders in the sector has decreased, but larger companies are becoming stronger. The TT's milk producer membership has decreased but representativeness is increasing, highlighting the importance of competitive production and size efficiency in the Hungarian dairy sector.