These are now the challenges of supply chain management in the food industry

By: Trademagazin Date: 2022. 09. 02. 18:15

The supply chain management area is of strategic importance to manufacturing companies in crisis situations. As Ukraine is one of The Most Important Agricultural Exporters in Europe, the ongoing war between Ukraine and Russia poses challenges for food companies in neighbouring countries, including Hungary, in terms of supply and demand, which is compounded by rising inflation.

The food industry is an important sector of the Hungarian economy

PwC will now review the problems caused by the war situation, focusing on Hungarian food manufacturing companies and supply chain management, as well as targeted solutions that can help cushion the effects of the situation and maintain smooth production.

Many international companies outsource their production processes to Hungary, mainly because of the cheap labor force and the preferential tax system. In addition, of course, fully Hungarian-owned producers appear, so it can be said that the players on the food market are mixed. Among the multinational companies on the Hungarian market, there are those that produce several types of products, such as Unilever or Nestlé, but there are also those that have a narrower portfolio, perhaps specializing in only one type of product group, such as Coca-Cola. Hungarian-owned (or formerly Hungarian-owned) companies are present in such diverse sectors as the production of alcoholic beverages (Borsodi Sörgyár Kft., Zwack Unicum Nyrt.), meat production and processing (Pápai Hús Kft., Pick Szeged Zrt.) and the production of dairy products (Nádudvari Élélmiszer Kft.), but in addition to these, there are many other industries in which the presence of Hungarians is also significant.

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