If the war gets prolonged, the production prices of meat and dairy products are also expected to rise by 30-40 percent, Zoltán Varga, senior analyst at Equilor Investment told news site Index.
The Russia-Ukraine war and the lifting of the food price cap introduced in January could lead to significant price rises, analysts predict. The war is causing energy prices to rise, fertilizer shortages, and a significant drop in grain production, so if the war drags on, production prices for meat and dairy products are expected to rise by 30-40 percent.
In the case of a 40 percent increase in raw material costs, a 25 percent increase in consumer prices for meat products is very likely, Zoltán Varga said.
According to the analyst, in the pig sector, the realistic price of pork is expected to be around 3-4,000 forints per kilogram (EUR 8.16-10.88) by the end of spring, while in the poultry sector, chicken prices of 2-3,000 forints (EUR 5.44-8.16) would be necessary to maintain the viability of producers and avoid unbearable losses.
Featured photo illustration by Zoltán Máthé/MTI