Among the solutions are investments to increase energy efficiency and the relocation of production abroad.Continue reading
Ádám Nagy, managing director of Nádudvari Élelmiszeri Kft, a producer of dairy products, meat, and frozen food, considers the development of energy prices to be the biggest uncertain factor in the food market, but he expects prices to fall, reports Világgazdaság.
Nádudvari Élelmiszer Kft., part of the Nagisz Group, increased its net sales from HUF 12.5 billion (34 million euros) to HUF 16.7 billion (45 million euros) last year, despite large cost increases, Ádám Nagy, Managing Director, said at the company’s recent press event. Meanwhile, their pre-tax profit decreased from HUF 567 million (1,5 million euros) in 2021, to HUF 435 million (1,2 million euros), which the managing director considers a good result given the costs of last year’s increases.
The Nádudvari Food Ltd. processes 30 million liters of milk a year, not including liquid milk sold by the company, Nagy said. Half of the turnover comes from milk processing, while the remaining 50 percent is shared equally between the production of meat products, which produce 3,500 tons of products annually.
Photo: Facebook/Nádudvari
Nagisz is implementing an investment program worth HUF 20 billion (54 million euros), which includes the recent completion of a HUF 1.234 billion (3,3 million euros) development at Nádudvar, resulting in capacity, automation, and efficiency improvements.
A HUF 650 million (1.7 million euros) investment program to increase energy efficiency, by expanding the solar park and replacing refrigerators for ones with lower energy consumption, will soon be launched.
According to Nagy, these investments are key not only for their company, but also for the Hungarian food industry, which is at an efficiency disadvantage compared to the western European and Polish food industry.
In 2023, Nádudvari plans to achieve a turnover of around HUF 18 billion (48 million euros), which they aim to increase to HUF 20 billion (54 million euros) in the next few years, mainly by increasing their exports. Their exports have increased from 300,000 euros in 2021, to 1 million euros last year, and the target of this year is to reach 2 million euros in export sales. They also want to break into the western European market – first of all Austria and Germany – with their frozen products, which could be an important factor since there is a great interest in vegan products, of which Nádudvari produces three types.
They are also planning to become the market leader in grilled sausages and to become the dominant player in the domestic yogurt market, which is now 80 percent imported.
via Világgazdaság, Featured image: Pixabay