The chemical industry can also have something to do with the development of food prices

By: Trademagazin Date: 2022. 12. 16. 11:44

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According to the analysis of the Egyensúly Institute, the chemical industry does not at first appear to be an extremely important sector in Hungary, since it produced barely 1.5 percent of the gross added value last year. However, it is the sixth largest supplier to the agriculture and food industry, mostly due to the fertilizers and chemicals used in crop production. If there is an increase in producer prices in the chemical industry, it quickly spills over into agriculture and can be reflected in food prices over time.

The chemical industry is the industry most exposed to natural gas prices, as many of its products are based on natural gas, such as ammonia, which is widely used in agriculture, and the pétisos made from it. Due to the high price of gas, it has been less profitable for industrial companies to produce recently. According to KSH data, for example, in August this year, they reached only 10 percent of their production volume of a year earlier, while the price of their products rose significantly, Haszon.hu points out.

However, they add that the sector has barely reduced its workforce. Furthermore, it is likely that, despite the intermittent production, they will close a good year, which indicates that the recording market is receptive to prices – writes Portfolio, referring to the analysis.