Presumably, the 20-25% cost increase in the livestock and animal products market will result in a 10-12% growth in consumer prices.
As the Hungarian news portal Magyar Mezőgazdaság reports, both the pandemic and the bird flu impacted the poultry sector last year. However, the chicken population has grown despite the troubles. This can be explained by the fact that chicken and eggs are consumed on a daily basis by Hungarian families. These products will be of key importance both in Europe and globally.
According to the agricultural expert, ensuring the feed needs of domestic animal husbandry and animal products is a matter of national security. Therefore more attention should be paid to physical stocks in the future. For the time being, the only solution for producers to survive is to incorporate these cost increases into the price of their products, for which retail chains and consumers must be prepared.
As a result of the nearly 30% cost increase in the livestock and animal products market, a 10-12% increase can be expected in consumer prices.
Just like the catering industry, the poultry sector was also impacted negatively by the closure of hospitality establishments (hotel, restaurant, cafe). There was a significant decrease in the consumption of meat, eggs and goose liver.
The recovery of the sector will depend on the level of control over the pandemic and bird flu, as well as the restart of the tourism and hospitality sector.
Another significant problem is the lack of skilled workforce, for which the sector must be prepared in the long term. Currently, farms have two options: either adjust their production to the existing labour force or replace human labour. According to the expert, developing technology is the right way to build efficient and competitive companies and industries.