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Hungarian meat sector restructuration in the post-EU accession period

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  • Konig, Gabor
  • Nagy Orbanne, Maria

Abstract

other Hungarian food industry sectors and also compared to the concentration level in West European countries. In the sector the share of foreign capital is also very low (17%). Because of the low share of foreign capital and relatively small concentration, structural and ownership changes were to be expected, resulting in a more concentrated and competitive sector. The restructuring process involved a number of steps. First of all, Sándor Csányi acquired Délhús and then later acquired Pick Szeged, and in 2005 these two corporations’ sectoral share was about 25%. As for the other two large corporations – R-KO-N and Carnex – in late 2005 the latter weakened significantly causing a loss in market share and the bankruptcy of two companies within its industrial group. Currently the meat sector is undergoing rationalisation of costs and activities, coordination, and an elimination process, all brought on by increasing competition. Pork consumption tends to run counter to the rising standard of living as consumption has been stagnating for years. Domestic production of pork is going down but imports (mainly live pigs) are shooting up. Now a portion of produced pork (mainly carcass meat) can be sold in Hungarian’s export markets at the re-accession level. Even today the elimination process is affecting numerous abattoirs. Changes in ownership structure could hasten the elimination process, leading to a reduction in the large surplus capacities. For example, in 2003 50% of pig slaughtering capacities were used, similar to the capacity used in salami and sausage production.

Suggested Citation

  • Konig, Gabor & Nagy Orbanne, Maria, 2007. "Hungarian meat sector restructuration in the post-EU accession period," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 105, pages 1-10, January.
    • Handle: RePEc:ags:stagec:107655
    DOI: 10.22004/ag.econ.107655
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    References listed on IDEAS

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    1. Lakner, Zoltan & Reti, Attila, 2005. "Competitive Strategies On The Meat Products Market," GAZDÁLKODÁS: Scientific Journal on Agricultural Economics, Karoly Robert University College, vol. 49(Special E), pages 1-11.
    2. Ollinger, Michael & Nguyen, Sang V. & Blayney, Donald P. & Chambers, William & Nelson, Kenneth B., 2005. "Structural Change in the Meat, Poultry, Dairy and Grain Processing Industries," Economic Research Report 7217, United States Department of Agriculture, Economic Research Service.
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