Hungarian Milk Producers Hit Hard By Falling Prices
Tamás Székely 2015.06.21.
The bulk purchasing price of milk in Hungary was 100 forints (approx. €0,3) per litre a year ago but earlier agreed contractual prices have fallen to 75-77 per litre and spot market prices are as low as 72-73 forints per litre, Hungarian business daily Világgazdaság reported.
Production costs for most range between 95-98 forints per litre according to the paper and only subsidies are keeping many producers from going bankrupt. Világgazdaság said the price of milk has fallen because of large global supply, the phasing out of European Union milk quotas and the embargo by Russia.
The milk quotas were withdrawn on 1st of April 2015, and since there are now no limits to milk production within the European Union. Majority of EU member states had so far not used their full milk quotas, and Hungary too has only made use of some 75-80 percent of this opportunity.
via vilaggazdasag.hu and hungarymatters.hu photo: Balázs Mohai – MTI