"Due to a sharp rise in base material prices, the retail price of fresh meat could be raised by about 20% within days and the price of meat products could go up by 10-15% in about a month in Hungary, business daily Világgazdaság reporeted on Monday.Fodder prices soared by 50-100% over a year, which led to a drastic decrease in the number of hogs in Hungary. This could almost inevitably result in shortage of meat and import growth, experts of the meat industry told the paper.
According to data by Central Statistics Office (KSH), the number of pigs dropped by 410,000 to 3.66 million in 12 months by 1 April this year.
László Kovács, Chairman-CEO of market leader Pick Szeged, told the paper a price hike was now a matter of life and death for local meat companies, as base material prices have risen by about 20% recently, while meat producers were practically unable to raise prices since last year.
Base material prices determine 90% of cost prices at fresh meat and 70% at meat products. Considering this and changes at changes at other cost factors, meat companies would like to see a price hike of at least 20% at carcase meat 10-15% at meat products.
“We have already started talks to raise prices," said Gyula Román, President and owner of Debrecen-Hús, the second-largest player on the local meat market."
Source: Portfolio Online Financial Journal
19.05.2008