Prophecies and facts in Tapolca (part 1.)

Despite negative market trends, the atmosphere was pleasant at the Business Days conference organised by Trade magazin and Lánchíd Club in Tapolca, on 26-28. September with nearly 300 guests. During the opening of the conference, Zsuzsanna Hermann, editor in chief of Trade magazin briefly introduced our new periodical, which has the largest circulation among FMCG magazines. According to László Hovánszky, chairman of Lánchíd Klub political decision makers turn to the Klub for advice on an increasing number of occasions. András Köves, sales and marketing director of Bunge Zrt., used an intercepted letter to draw attention to the necessity of co-operation generated by global changes and the expansion of retail turnover. He believes that the only way to survive the forthcoming period is by the processing industry and retail trade working even more closely together than in the past. The topic of the first discussion forum was the competitive position of the Hungarian food business. In the opinion of Zoltán Fekete, general secretary of the Hungarian Brands Association, the picture we get from consumer surveys is quite different from what is seen at the cash registers of stores. Dr. Gábor Udovecz, general director of AKII thinks that there is already/going to be a change in trends, with shortages appearing where we have only seen abundant supply in the past, but he does not expect to see a long term increase in the price of materials. In the view of Péter Feiner, chairman of OKSZ, stricter market regulation and more definitive guidelines are needed, because the food business will not be able to recover from the existing crisis spontaneously. Dr. Márta Nagy, vice-president of the Economic Competition Authority, emphasised the freedom of the market and was not worried about market players being forced to adapt and compete, but she also pointed out the necessity of co-operation and a complex approach. Dr. Attila Kathi, from the National Consumer Protection Authority, spoke about the process of customers becoming conscious consumers and about their increasing awareness regarding problems. On the Day of Commerce, the discussion was lead by Mrs. Szalókyné Judit Tóth, director of Nielsen, who asked participants about the degree of price rises they expect. Tamás Szendrő, sales director of Csemege-Match expects major price rises in another few categories, but he believes the average rate of prise increase will be below 10-15 per cent. Bránát István, managing director of Interfruct thinks that large scale prises rises are coming in the meat and bread categories during the remaining part of the year and the same will happen in the vegetables and fruit category next year. According to László Hovánszky, prices will continue to be determined by supply and demand. In the opinion of Tibor Kujbus, managing director of Reál the rise in the price of materials cannot be stopped by imports, as supply within the EU is limited. László Murányi, general manager of Co-op Hungary Zrt. sees the continuation of brand building and closer collaboration between manufacturers and retailers as the key to the survival of retail chains. Kornél Saltzer, managing director of SPAR called attention to the necessity of collective lobbying. Producers in the audience of the discussion expressed the opinion that retailers show little inclination to co-operate and a true breakthrough can only be expected from changes in legislation.