The optimistic sentiment in the feed market may end
The Hungarian feed industry is prospering, but storm clouds are gathering. Animal health risks are constantly present and market players are prepared to deal with them, but as Bujdosó Tünde, Director of Risk Management at Euler Hermes Credit Insurance, modeled the situation and the expected market outlook.
In this case, we can expect shortages, then overpricing that can have a serious impact on volumes and thus on the feed sector. Banks and credit insurers and feed manufacturers have to deal with the situation financially until farmers and producers are compensated. And to reduce VAT frauds in the soybean meal market, one of the main ingredients in feed, it would be worth to consider the introduction of reverse VAT or lowering the sales tax on the product – she suggests in her latest industry analysis.
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