Hungary announces HUF 50 billion credit line for the dairy industry

According to the ministry's statement, the government's goals remain unchanged: developing the food industry; preserving and strengthening sovereignty; and providing the Hungarian population with a full range of high-quality, affordable food products, including milk and dairy products.

There has recently been a significant surplus in the European milk and dairy products market, which is posing an increasing challenge to Hungarian milk processing companies. To support them,

the government is providing a separate credit line of HUF 50 billion through EXIMBANK as part of the Demján Sándor Credit Programme.

Milk processing companies will be able to access working capital loans at favourable interest rates in both euros and forints.

With more than 15,000 people currently employed in the dairy industry in Hungary, the ministry considers protecting the sector to be a matter of national strategic interest. Significant changes in the European milk and dairy product market in recent years have resulted in considerable surpluses, with an increasing number of dairy products being sold at dumped prices in domestic retail outlets.

Due to increased imports and expanded production, significant stocks have accumulated in the milk market, the financing of which is becoming an increasingly challenging issue for Hungarian milk processing companies,

they write.

The Economy Minister had previously prohibited a foreign investor from acquiring Hungarian-owned Alföldi Tej Kft. This further step was taken in order to address the challenges facing the milk and dairy products market, and to support domestic milk processing companies.