Turning point in the dairy sector

Zoltán Harcz
managing director
Milk Interprofessional
Organisation and Product
Board

 At the same time, the sales revenue of the 12 largest milk processors exceeded last year’s figure by 1.8%, and their after-tax profits increased nearly two and a half times. However, profitability remains low at only 1-2%. In the first eight months of 2025 the value of milk and dairy product exports grew by 10%.

Market challenges and limitations

The sector’s operations are hampered by several long-standing factors: the development gap in the areas of energy use, automation and technological modernisation, as well as low profitability.

“Trade policy instruments that distort free competition – price caps, margin freezes that encourage cheap imports, price monitoring and strategic decisions that restrict the free movement of capital within the EU – also influence market conditions”,

explains Zoltán Harcz, managing director of the Milk Interprofessional Organisation and Product Board.

The Hungarian dairy sector has seen substantial developments and innovations in recent years

Investments and technological modernisation

In recent years there have been significant developments and innovations in the Hungarian dairy sector, largely driven by government and EU subsidies. The goal is to increase competitiveness and added value, as well as to meet modern consumer expectations. Over the past 3-4 years there has been a shift in consumer behaviour in Europe and Hungary toward discount supermarkets, private labels and larger, more affordable product sizes. Shoppers are also focusing more on high-protein, lactose-free and various functional products.