Hungarian households are fond of milk

Since EU accession the Hungarian dairy industry’s domestic market has generally expanded as
turnover and consumption have both grown, but this has been increasingly due to cheap imports, while
the purchase and sale of domestic products has been decreasing or stagnating (both in the domestic
and foreign markets). The growth in imports has cut Hungarian corporations domestic market share to
80%. In Hungary corporate concentration has become even more pronounced with large corporations
further strengthening their position and smaller ones further shrinking. Moreover, foreign ownership
prevails and has the primary aim of meeting domestic demand. Changes in ownership contribute to the
strengthening of vertical integration. Still, in the EU corporate concentration trends also exist. However,
in the current fi erce competitive market, it is not yet apparent whether non-producer ownership or
co-operative ownership is more viable. Therefore the increase in Hungarian owners and ownership
of processing plants by (Hungarian) producers does not necessarily signal the end of the crisis, but
may in fact still signal decline. Positive aspects are increasing concentration and, from the consumers’
standpoint, cheaper dairy products. Cheaper milk products have put great pressure on milk producers
(lower milk prices), and have had a positive effect on consumption trends. Milk drinks and some new
milk products have been replaced by products with lower milk content and milk-imitations.