Low profitability in swine breeding

In Hungary more than 400 businesses are carrying out meat-processing activities. Since 2004 the number of such businesses has halved, and the production is highly concentrated (less than 50 companies providing 75% of the domestic production and 98% of exports). The gross production value of Hungary’s meat industry is above HUF 300 billion. The sector continues to struggle with productivity, profitability is low (2-3%). The foreign trade balance is positive, but Hungary’s position as a net exporter in the internal market of the EU is decreasingly favorable. The export-import balance of pork became unfavorable as an effect of the growing import figures; due to decrease in domestic livestock numbers, meat industry has to rely on imports from EU countries. The range and quality of ready-made products is developing continuously. The biggest challenge is to remain at the market, which can be met through a well-informed knowledge in several fields: the increasingly strict food-safety regulations, animal welfare, environment-protection requirements and the need of consumers.