Tamás Éder: “Tackling extra burdens is the most important task in the next period”

– The food industry experienced a decline we haven’t seen in decades, affecting both domestic sales and exports, with the production volume index falling by more than 10%. This negative trend has started at the end of 2022, but by the end of 2023 indicators showed a slight improvement.

 – Which sectors stood out last year as the most successful ones? Which segments faced more difficulties?

– The majority of large sectors suffered a decline of around 10% last year. There are two sectors that have bucked the trend: one is the milling industry, where the decrease was significantly larger. At the same time the bakery industry came up with a small positive performance, due to the dramatic rise in prices in 2022, when food inflation peaked at the end of the year, reaching 45% year-on-year in December.

 – What regulatory changes affected the food industry in the past year?

– There were temporary measures introduced as part of the fight against inflation. These included price caps, which were later replaced by mandatory price discounts, and the introduction of a price monitoring system by the Hungarian Competition Authority (GVH). These measures were politically understandable, but maintaining the price caps for too long caused serious problems for the products and the sectors concerned. There are several other regulatory measures that have had a very negative influence on the sector, such as the introduction of the EPR fee, which has drastically increased the costs associated with packaging.

 – What export opportunities and challenges has the sector identified over the past year?

– In the past two decades the food industry has often been saved by export markets, but last year was a departure from the norm, as exports fell at the same rate as domestic sales.

 – What new funding programmes and grant opportunities were created for the food industry and what impact did they have on the development of the sector?

– Last year there were no new significant funding schemes for the food industry. New grant programmes are currently being launched and are expected to be published in the coming weeks, with a total value of around HUF 200bn. These development investments will be launched in line with the CAP Strategic Plans.

 What are the main strategic plans and objectives for the food industry in the coming years?

– Improving efficiency is certainly a priority for the Hungarian food industry, where many businesses are struggling to compete internationally. There is a fundamental need for optimising operations, by technological modernisation and robotisation. Achieving an internationally competitive production plant size in the manufacturing of mass-produced goods is another important challenge.

 – What steps did FÉSZ take to support the food sector in the past year?

– Unfortunately, the introduction of the EPR fee, which came into force after lengthy but fruitless negotiations, was a failure from a trade point of view. We protested against its structure and the high fees were from the very beginning. It was bad for the industry not only because of the cost increase, but also because of the way in which the dialogue between government and industry has been conducted.

 – What activities do you plan for 2024?

– Giving our opinion on legislation will remain a priority this year. We are also fighting hard for a reduction in EPR fees. We would like to understand why Hungary has one of the most expensive EPR systems in Europe and what measures could be taken to reduce EPR fees. //