Hungarian fruit growers and cereal processing companies can end up in a bad situation

Changes in agricultural prices can cause serious problems for cereal crop processing companies and fruit growers – warns K&H Bank. István Tresó, the head of K&H’s agricultural sector development division told: the recent 3.5-percent increase in vegetable product prices is likely to result in serious changes in these two sectors too.

The fact that cereal crops cost 13 percent more puts great burden on the milling and cereal processing industry, as it is unlikely that companies will be able to integrate the current stock that has been priced unreasonably into sales prices. At the same time fruit prices dropped 19 percent and this can have severe consequences for the sector. This year a lot of high quality fruit was harvested, so prices became lower but the production cost of fruit farmers increased significantly, in part because of the workforce shortage. The result of this can be long-term problems in the sector. //