Scandal at Lidl Hungary: promise broken, here is why

Almost two years ago, Lidl promised to sell only products from Hungarian suppliers in the fresh poultry and pork section. Now, there is no sign of that happening: unrealistically cheap German and Polish imports are everywhere. Lidl says that the vast majority of its products still come from Hungarian partners. The aim is to keep inflation down by keeping prices low.

False promises

Világgazdaság wrote that less than two years ago, Lidl made a voluntary commitment to only sell fresh poultry and pork meat from Hungarian suppliers. The popular supermarket chain stated the following:

• It will strive to offer as many Hungarian products as possible and thus act as a partner for Hungarian farmers and the Hungarian economy.
• In addition to a wide range of products, it will offer a very rich selection of exclusively domestic fresh poultry and pork meat.
• Lidl is extremely proud that 100% of the fresh meat in its permanent range comes from Hungarian suppliers.
• For Hungarian families, this is a guarantee of freshness, outstanding quality and sustainability.
• In addition, it means stability and a steady source of income for their Hungarian suppliers.

A problem for the Hungarian meat industry

Two years after Lidl’s major announcement, shoppers can now see that the German-backed supermarket chain is flooded with cheap German and Polish imports in the meat section. There is no trace of the 100% Hungarian supplier ratio. The imported meat is unbelievably cheap. During hard economic times, people will choose the cheapest option over anything. Therefore, Lidl’s move is squeezing out Hungarian goods, and driving rival retail chains into a price war. This could seriously damage the Hungarian meat industry even in the short term.

Response from Lidl

Lidl has responded to Világgazdaság’s questions regarding the subject. Judit Tőzsér, Head of Company Communication, argued that Lidl aimed to break down inflation in line with the Hungarian government‘s ambitions and thereby support Hungarian families. The chain’s main goal is to bring down inflation. Tőzsér added:

Lidl can contribute by ensuring low prices, as the company continues to focus on the interests of its customers.

Tőzsér thinks that the company prioritises its Hungarian supplier partners. In addition, Lidl will continue working on ensuring that cooperation remains unbroken, as Hungarian products play a central role in the chain’s product range. The Head of Company Communication also pointed out that Lidl works with over 500 Hungarian suppliers. Thus, the chain still has outstanding cooperation with Hungarian suppliers. Lidl ordered products worth HUF 124 billion (EUR 322 million) more than in 2021.