PolicyPulse.pro

Hungarian Competition Authority Investigates Price Influences in Dairy and Egg Markets

A bunch of eggs stacked on top of each other
Photo: Photo by Tadeusz Zachwieja on Unsplash

The Hungarian competition authority has concluded two rapid sector investigations into the dairy and egg markets, identifying various factors affecting pricing and consumer costs.

06.07.2025 | Hungarian competition authority


On July 7, 2025, the Hungarian Competition Authority (GVH) announced the completion of two expedited sector investigations focusing on the domestic dairy and egg markets. The investigations revealed multiple factors influencing pricing within these value chains, ultimately affecting consumer prices.

The GVH noted that several previous recommendations had been implemented in the dairy market, including the launch of an online price monitoring system in summer 2023 and a margin reduction policy starting in March 2025, which helped to moderate consumer prices. However, the price increases observed in 2024-2025 were attributed to complex factors such as rising feed and energy costs, labor shortages, shifts in income distribution within the value chain, and certain retail procurement practices.

During a meeting of the Economic Committee of the National Assembly on April 15, 2025, GVH President Csaba Balázs Rigó announced the initiation of these investigations due to significant fluctuations in the prices of dairy products and eggs. The GVH's data collection involved extensive outreach to producers, processors, cooperatives, and retailers, resulting in over 230 data submissions for analysis.

In the dairy sector investigation, the GVH found that recommendations made in a previous investigation in early 2023 contributed to price reductions. Notably, the removal of a base price forecast significantly influenced the price of raw milk, which fell below the EU average in Hungary. Additionally, the online price monitoring system led to a reduction in gross margins for major retail chains, further lowering consumer prices.

The report also highlighted that the significant price increases in the dairy market during 2024-2025 were driven by a resurgence in raw milk prices across Europe, along with rising labor and utility costs. The analysis indicated a shift in income distribution favoring producers and processors, with consumer prices decreasing after the margin reduction policy was implemented.

In the egg sector, the GVH identified that the notable price increases observed in the second half of 2024 were due to a combination of factors, including rising feed and energy costs, labor and logistics expenses, and the impact of avian influenza outbreaks on production. Additionally, the transition from caged to alternative housing methods due to changing consumer demands imposed significant costs on producers.

Overall, the GVH's expedited investigations concluded that rising costs, coupled with seasonal demand fluctuations, contributed to the price increases in the egg market. The draft reports from these investigations have been made available for public consultation on the GVH's website, allowing market participants to submit feedback until August 25, 2025.

Consult source

Terms of ServicePrivacy PolicyCoverage
LinkedInFollow us on LinkedIn

© 2025 PolicyPulse. All rights reserved.