The Hungarian feed industry is experiencing a significant rebound following a turbulent period over the last few years. According to a recent report from the Budapest-based Institute of Agricultural Economics, feed production is on a steady recovery path.
In 2024, Hungarian feed mills are projected to manufacture approximately 3.8 million tonnes of feed, marking a 4.1% increase compared to the previous year, as calculated by the institute’s analysts.
A Mix of Challenges
The past few years have presented considerable hurdles for Hungarian feed manufacturers, including rising food inflation, sharp increases in grain prices driven by ongoing drought conditions, and spiking electricity costs due to the war in Ukraine.
Nonetheless, there are positive indicators on the horizon. Analysts have noted that lower raw material costs and a decrease in borrowing costs have revitalized investment activity within the industry.
Poultry feed continues to dominate, accounting for 48.3% of Hungary’s total feed production, which amounts to approximately 1.84 million tonnes in 2024.
Feed Production Estimates
- Broiler feed increased by 5.1% in the last year.
- Duck feed production saw a solid rise of 10%.
- Feed production for laying hens declined by 3.5%.
- Turkey feed production dropped significantly by 10.7%.
- Goose feed production fell by 16.8%.
- Pig feed production grew by 10.3%.
- Cattle feed production increased by 2.3% compared to 2023.
Price Fluctuations Stabilize
Analysis reveals that the composition of Hungarian feed is largely based on grains (approximately 61%), protein crops (13.9%), and oilseeds (8.1%).
A notable achievement in the last year is the moderation of price fluctuations in the feed market. Researchers have observed that changes between consecutive quarters in 2024 were confined to about 4%, a stark contrast to nearly 10% in 2023.
Positive Trade Balance
In 2024, a remarkable 23% increase in feed exports has been noted, although specific figures were not disclosed. Conversely, imports into Hungary have decreased compared to the previous year, resulting in a favorable balance of trade in the industry. The main markets for Hungarian feed exports are Romania, Croatia, and Slovakia.
Consistent Consolidation Levels
The Hungarian feed industry maintains a strong level of consolidation. The five largest feed manufacturers produced 1.25 million tonnes, representing 32.9% of the total output in 2024. This percentage remains consistent with average levels observed in recent years, indicating stability within the industry.
