The Milk Product Council is revising the basic price forecast for raw milk based on the recommendations of the GVH

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According to the announcement of the competition office on Wednesday, the GVH experts made a proposal for the amendment based on the findings of the accelerated sector investigation on the market of milk and milk products. The GVH emphasized: the goal of the competition authority is that its findings and proposals lead to practical measures that contribute to the suppression of food inflation. In the announcement, it was recalled that on April 20, the competition office released its draft report summarizing the results of its investigation on the market of milk and milk products for public consultation. Based on the findings of the analysis, the competition authority formulated six proposals to reduce inflation. Among other things, GVH experts proposed a review of the raw milk base price forecast methodology used by the International Milk Association and Product Council.

This is how the price of raw milk is formed

According to the draft report, the methodology is currently based on a price forecast, some elements of which could further increase the price of dairy products in 2023, fueling inflation. The GVH therefore proposed a revision of the price formula to the product council, for which the national competition authority offered its professional support. The authority’s proposal protects both Hungarian consumers and Hungarian milk producers, as the review can contribute not only to the reduction of inflation, but also to the strengthening of the competitiveness of domestic milk producers – emphasized the GVH.

On April 26, the GVH agreed with five domestic professional organizations and the Ministry of Agriculture on its proposals aimed at reducing the consumer price of dairy products

At the consultation, Miklós Istvánfalvi, the president of the Tej Professional Association and Product Council, indicated that they were open to utilizing the GVH’s proposal. Thus, on May 16, the president of the GVH and his professionals received the leaders of the product council at another professional consultation. Balázs Csaba Rigó, the president of the GVH, said according to the announcement: they are working hard to break inflation. They are looking for solutions that contribute to reducing consumer prices and also serve the interests of Hungarian producers and domestic agriculture. Miklós Istvánfalvi emphasized that, in connection with the price forecast, they intend to use the professional consultation help recommended by GVH. In the coming weeks, the experts of GVH and the product council will work out the solutions necessary to achieve the goals in further professional consultations.

MTI