Sharp price competition and challenges in the Hungarian food industry

Customers are increasingly looking for cheaper products, which can come at the expense of quality and packaging. The domestic food industry is at a competitive disadvantage compared to the EU average, and government burdens, such as EPR fees, further complicate the situation. According to Attila Vörös, the executive director of the Association of Responsible Food Producers, the domestic agricultural and food industry needs urgent improvements in order to become more competitive on the international market.

The productivity indicators of domestic manufacturers are below the EU average, which can cause problems not only in domestic but also in export markets. In 2023, agricultural foreign trade showed a slight improvement, but the increasing share of imported food is cause for concern. Modernization of domestic production, automation and digitization would be essential in order to increase efficiency, especially in the case of non-premium category products. The Agricultural Sector Conference in December will also discuss the future, competitiveness and necessary developments of the domestic food industry, where experts will discuss the challenges and opportunities facing the sector.