Magazine: Hungarian Grain and Seed Association: Great potential in making organic products

Pótsa Zsófia
general secretary
Hungarian Grain and
Seed Association (MGTKSZ)

According to Zsófia Pótsa, general secretary of the Hungarian Grain and Seed Association (MGTKSZ), the annual gross production value of the Hungarian milling industry is HUF 97-99 billion. Per capita flour consumption has been decreasing, so instead of the former 1.5-1.6 million tons of wheat that used to be processed, now flour is only made from 1.2 million tons. The Hungarian milling industry makes enough flour to serve domestic needs. Hungary’s top 10 milling companies are responsible for 80 percent of total flour production. The profit margin is only around 2.5 percent and the too high, 27-percent VAT rate has a negative influence on the market.

Ms Pótsa revealed that less funding is available for the sector than before. In 2017 the value of investment was below HUF 3 billion, from which HUF 2.4 billion was own resources. It is really good news though that 75-80 percent of the production takes place in modern mills. Changing consumption habits influence the milling industry too. The general secretary is of the opinion that the association and baking enterprises should join forces to promote the consumption of healthier, tastier and longer shelf life breads. She thinks the biggest challenge in the sector is turning the negative consumption trend around with the help of successful marketing work. One of the main goals is the creation of a transparent market, where competition is fair. /