Hungary blocks sale of local dairy company to foreign investor
The National Economy Ministry has prohibited the sale of Hungarian-owned dairy company Alföldi Tej to a foreign investor.
In an announcement on Tuesday, the ministry said the transaction would pose “significant risk” to the security of food supply. It noted that Alföldi Tej accounts for close to 20pc of farm gate purchases of milk in Hungary. Under foreign ownership, local manufacturing output would fall as raw milk is exported and the price of dairy products produced abroad climbs, while popular brands disappear from local store shelves, it added.
The state is weighing an offer to purchase Alföldi Tej for the same conditions planned for the sale to the foreign investor, the ministry said. It added that the Agriculture Ministry and the Dairy Products Council had agreed that that the sale to the foreign investor would pose risks.
“The government’s aim is to renew and develop the food industry, while preserving and further strengthening sovereignty, and ensuring high-quality and affordable food to all Hungarian households,” the ministry said. The planned acquisition of a 100pc stake in Alföldi Tej by the foreign investor was reported to authorities on June 5.
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