Swine sector bleeding from several wounds

Meat production is becoming increasingly concentrated in Hungary, with less than fifty enterprises generating three-quarters of domestic sales and the major part of export. The Hungarian meat processing industry ceased to be a net exporter in 2005. Hungary has turned into a net importer of swine and pork in recent years. The doubling of fodder prices seen this year has put the sector in a difficult situation. With domestic demand shrinking and the HUF staying permanently strong, this can lead to many producers going out of business. According to Mrs. Menczel, secretary of the Meat Product Council (VHT), livestock of swine totalled 4 million in 2006. 3.2 million of these have been slaughtered, in addition to another 700,000 imported animals. The price of HUF 300 per kilo offered for livestock in 2006 has been substantially reduced this year. While costs amounted to HUF 330 per kilo, prices were down to HUF 250 by November. Subsidies are no longer available. Gross production of the meat industry is well above HUF 300 billion. This accounts for less than 16 per cent of total production in the food industry. According to last year’s figures, 78 enterprises produced in excess of 10,000 swine for slaughter, which means that 2.3 per cent of farmers account for 56 per cent of total sales. There are six slaughterhouses with annual output exceeding 200,000 animals, which represent 60 per cent of domestic capacity. There are many SME-s active in slaughtering, with the proportion of illegal production estimated at 30 per cent of the total. Per capita meat consumption can only be estimated. Per capita pork consumption is estimated at 29 kilos per year, while that of beef is estimated at 6 kilos per year.