The domestic meat and dairy industry is losing money, but it receives a lot of support

In the distribution of subsidies, animal breeders currently benefit the most, while horticulture receives less support. Arable crop production also accounts for a large share, a significant part of which is used for the production of animal feed. The higher VAT rate for vegetables and fruits, in contrast to the lower tax rate for milk and pork, further aggravates inequalities – writes Másfélfok in its analysis.

The data show that livestock farms, especially pig farmers, dairy and beef farms, have been unprofitable for years. This means that the state not only supports the profits of the farms, but also compensates for their losses.

The analysis highlights that subsidizing milk and pork exports practically results in Hungarian taxpayers financing products consumed abroad. According to FAO data in 2020, Hungary produced more meat per capita than the neighboring countries combined, and even France and Germany.