László Bárány, the founder and owner of the Master Good group of companies, has good news for all of us. Based on the economic developments of the past few years, he expects a significant drop in the price of poultry meat. According to the expert, people can look forward to a 10 percent reduction by the end of the year.
After a 10 percent reduction in April, Mr Bárány expects another 10 percent correction in chicken meat prices by the end of the year.
Poultry exporters benefited from the unfavourable conditions
The expert told Magyar Nemzet that although the economic consequences of the COVID-19 pandemic and the Russian-Ukrainian war have put businesses in a difficult situation, poultry exporters have benefited significantly from the demand market that has also developed in this context, as well as from the weak forint.
He added that the European-wide avian influenza pandemic had led to the culling of huge flocks. This resulted in a massive poultry shortage.
Consequently, the demand market has allowed not only to absorb extra costs, but also to increase the profit margin, Index explains, based on Magyar Nemzet.
Mr Bárány said that high costs coupled with low supply naturally generated high consumer prices. To this, the Hungarian government responded by introducing price caps. Among chicken products, breast fillet and rump have been capped.
Another 10 percent price drop is expected by the end of 2023
He said that for six months, this measure had indeed put a slight brake on the relentless rise in prices. However, at the end of last year, a new turnaround occurred: as grain prices soared due to the drought, consumption fell and the fall in demand began to curb the rapid price rises.
According to László Bárány, this means that by the second quarter of 2023, overall sales prices in Europe had fallen by ten percent. What is more, this trend is forecast to continue in the coming months. According to the company owner, this means that a further 10 percent drop in prices is expected by the end of the year.
He added that, in his view, this will lead to long-term price stability. Finally, Mr Bárány said that inflation in Hungary is forecast to fall noticeably in July, which means that consumption will increase again over time at lower prices.