The small meat-processing companies are in hopeless situation

Those domestic meat industries can survive the crisis whivc has own raw material production, has significant opportunities for domestic sales, and has export markets. The smaller companies working with imported raw materials can bankrupt.

The weak forint improved export price incomes, the malaise of the German market is counterweighted by american and Japanese orders – said Kovács László the CEO of Pick Szeged Ltd. One-third part of Pick’s turnover comes from export, and due to the problems of other domestic competitors the domestic orders of the company have been increased. Therefore, Pick Salami returned to the normal workweek form from the earlier four days. The Pick is expecting a turnover over 60 billion HUF compared to last year's 58.5 billion.  With a strong background in pig breeding, the Pápai Meat 1913 Ltd., also in a better position thanks to its export results and its own brand store network. According to East-Hungarian Meat Ltd.’s leader  Fazekas József the smaller firms were forced to suffer a 10-15 percent decrease in demand since the beginning of the year, while the raw materials and other costs were high.  If this trend continues, then 100 plants will be closed from the domestic 120.