The government is supporting dairy farmers with a new measure

By: Trademagazin Date: 2026. 02. 20. 11:09
🎧 Hallgasd a cikket:

In order to improve the operating conditions of dairy farms and mitigate the effects of the milk market crisis, the government is trying to provide assistance to the sector not only by accelerating the payment of EU and national subsidies, but also by shaping the regulatory environment. In this context, in accordance with the request of sector players, the cut-off date for production-linked dairy cow support will change from the previous March 31 to February 28, announced Minister of Agriculture István Nagy. 

The Minister emphasized that the aim of the modification of the production-linked support, which operates with an annual budget of approximately 26 billion forints, is to reduce farmers’ costs. Applicants typically cull older animals after the cut-off date. By bringing forward the cut-off date and the reduction in stock, the costs of keeping, feeding and other maintenance will be borne by farmers for a shorter period, which may partially offset their losses resulting from the decrease in purchase prices.

István Nagy explained that this measure is justified by the milk market crisis experienced both in the European Union and in our country. In Hungary, the effects of the market disruption have been particularly felt since the end of 2025, which – due to the economic aftermath of the foot-and-mouth disease epidemic, among other things – have manifested themselves in the accumulation of unsold stocks, and in some cases, milk purchase contracts have not been renewed or have been concluded under less favorable conditions for producers.

It is important that the calving and age conditions do not change. This means that the animals applied for must meet the conditions for calving and being at least 23 months old by March 31. The necessary amendment to the regulation has already been published in the Hungarian Official Gazette, the minister added.

The government’s goal remains to preserve the viability of domestic milk producers, stabilize the dairy sector, and is committed to maintaining the security of Hungarian food supply, even in this challenging European market environment. As is known, to this end, it has accelerated the final payment of EU funds available in the single application, and has recently provided more than 2.4 billion forints in national support to milk producers.

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