Detailed regulations on margin stops have been published: who is affected and what products does it apply to?
The detailed regulations of the margin freeze introduced by the government have been published in the Hungarian Gazette, which will enter into force on March 17 and will be phased out on May 31 according to current plans. The measure aims to reduce inflation in food retail, but the products affected and the details of the regulation have met with mixed reception, Portfolio points out.
Which stores are subject to the margin freeze?
The regulation covers stores, shopping malls and online trading platforms whose main activity is mixed food retailing and whose net sales exceeded 1 billion forints in 2023. Smaller stores – such as local convenience stores – are again excluded from the regulation, so the measure primarily affects larger food chains.
According to the regulation, the margin cannot exceed the average margin applied in January 2025 and can be a maximum of 10%. If a product was not on sale in a store or online store in January 2025, the last available monthly average margin must be taken into account, but it cannot be more than 10%.
Limitation of the proportion of private label products
The government has also set a maximum proportion of private label products. Retailers must take into account sales data for the January-February 2025 period and maintain the proportion of private label products at this level. If a given product was not sold during this period, the last available monthly proportion must be used.
Which products are subject to the margin freeze?
The product range defined in the regulation covers a wide range of basic foodstuffs, including:
Meats: chicken breast, chicken leg, chicken rump, chicken wing, whole chicken, turkey breast, pork leg, pork loin, pork shoulder, pork fat
Dairy products: UHT and ESL cow’s milk (1.5% and 2.8%), butter, sour cream, natural yoghurt, fruit yoghurt, Trappist cheese, cow’s curd, margarine
Basic foodstuffs: fine flour (BL 55), strudel flour (BFF 55), granulated sugar, sunflower and rapeseed oil, table potatoes, garlic
Other: fresh eggs, Parisian
In the case of meat, the regulation covers all forms, so fresh, chilled, frozen, bone-in, skin-on, filleted, sliced and minced versions are also affected, regardless of whether they are sold in packaged or unpackaged form.
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