Disrupted market, uncertain future – foot-and-mouth disease epidemic could have serious consequences

By: Trademagazin Date: 2025. 04. 16. 13:17

The outbreak of foot-and-mouth disease (FMD) in Hungary has triggered a serious crisis in the meat and dairy sectors, with both industries facing escalating costs, restricted exports, and significant market uncertainty. Although the virus has so far been officially contained to four cattle farms in northwestern Hungary, the ripple effects are nationwide.

Key points:

Containment efforts are resource-intensive, with military and civil protection forces involved due to shortages in veterinary staff.
The virus spreads extremely easily, and while adult animals often survive, young animals face a high mortality risk. Even recovered animals can remain contagious for weeks or months.
Exports have halted to several countries, even within the EU, despite rules allowing products from non-infected farms to be sold domestically. This has resulted in stockpiling and storage capacity issues, especially in the dairy sector.
The government promised full compensation for culled animals, but no clarity has been provided on whether it will cover indirect costs (e.g. biosecurity, administration, storage, lost exports).
Retail price caps were introduced around the same time, putting additional financial pressure on producers, while large supermarket chains demand price cuts.
Poor communication and inefficient logistics (e.g. burial of infected animals) have drawn heavy criticism. A previously launched HUF 150 billion support scheme for farm infrastructure has stalled, with little funding actually reaching farmers.
Without clear compensation policies, many producers remain in limbo—uncertain whether they can recover their losses or not.

In short, while the disease appears under control biologically, the economic fallout is only beginning to unfold, and could have long-lasting impacts on Hungary’s livestock sector and international trade reputation.