The Hungarian meat industry is on the edge

The meat companies of Gyula and Kapuvár are on the edge of bankruptcy, Gallicoop wich had a 1.5 billion HUF profit last year, will also produce loss this year.

The meat industry is in trap: the industry participants are forced to raise prices, due to the increasing feed prices, which will reduce their turnover, or they trying to swallow more losses. The wonder weapon would be VAT reduction, while the government wants reversed VAT – which is considered as clearly harmful by the firms involved. (Kerner Zsolt, Haász János, Index)