Dairy Industry Faces Deepening Crisis

According to agricultural news outlet Agrárszektor, industry leaders warned at the 15th Dairy Industry Conference that farms must survive on their own resources, while roughly 20% of Hungary’s raw milk is exported and later returns as higher added-value products such as cheese, yogurt, and protein drinks.

Processors are also struggling after years of underinvestment, recurring crises every 3-4 years, and the loss of export markets following last year’s foot-and-mouth disease outbreak, leaving the industry unable to generate sustainable profits.

Despite tighter lending conditions, banks remain willing to support viable investments, while milk prices have begun to recover.