Hungarian meat processing companies are in trouble

Gyulai Húskombinát faces insolvency, Herz is struggling with a serious lack of resource and debt.

Without floating assets credit Gyulai Húskombinát faces bankrupcy – informed Népszabadság, Ruck János the Chief Executive Officer. That can cause the end of the 150-year old Gyulai Húskombinát and cause famous brands such as ‘Gyulai sausage’ and ‘Gyulai liver’ to disappear from the market. The company with almost five hundred employees is the largest employer of the city and  ensure the cost of living for hundreds of producers and suppliers. Nevertheless it would be demand for products, but the production process has a high cost due to lack of developments. Herz has similar problems. The EU has just placed Herz Salami under protection. Foreign demad has increased but because of the lack of resources the company is unable to increase production.