Hungary’s milk producers are getting hit harder than most of their European peers, with August raw milk prices down 35.3% from a year earlier and the country sliding to the bottom of the EU ranking as falling farmgate prices collide with drought-driven feed costs.
Hungary milk prices fall 35.3% in August
That matters because milk is now selling for less at the farm gate just as input costs are rising, squeezing margins across the dairy sector and raising the risk that producers cut herd size, delay investment or exit the market. For investors, the pressure points to weaker economics for processors, more import reliance and less room for consumer prices to keep falling.
Hungary’s national average raw milk price came in at 128.57 forints per kilogram in August, up 1.7% from July but still far below the level a year earlier. Exported raw milk fetched 141.86 forints per kilogram, more than 10% above the domestic average, underscoring how weak local bargaining power has become.
The slide is not just a Hungarian story. In Slovakia, raw milk prices rose 1.7% in August to 37.32 euros per 100 kilograms after previous monthly declines, while Romania and Slovakia both still sat above Hungary in the European Commission’s harmonized comparison. On that measure, Hungary’s price was 34.80 euros per 100 kilograms, versus 34.86 euros in Romania, 36.11 euros in Slovakia, 40.14 euros in Poland and 45.50 euros in Austria.
The gap matters for the wider food chain. Lower farmgate prices usually feed through to consumer prices with a lag, and Hungary has already seen retail milk prices fall 8.1% year on year in August, while cheese and butter were cheaper by 11.1% and 15.5%, respectively. But the benefits to shoppers may prove limited if feed costs stay elevated and supply tightens.
The broader European market appears to be stabilizing after months of declines, with EU milk prices edging up for a second straight month in August and major processors lifting payouts again. Still, the bloc-wide average remains more than 20% below year-ago levels, leaving Hungary exposed because its own decline has been steeper than the EU average.
That leaves the next six months critical for Hungarian dairies. Industry officials say raw milk prices still do not cover production costs, while drought and feed shortages are only beginning to filter through to farms — a setup that could keep pressure on supply even if prices stop falling.
| Entity | Gains | Losses |
|---|---|---|
| Hungarian consumers | ▲Lower retail dairy prices | ▼Limited benefit if supply tightens |
| Hungarian dairy farmers | ▲Slight monthly rebound | ▼35% yearly price slump |
| Slovak and Romanian farmers | ▲Better EU-relative pricing | ▼Still below year-ago levels |
| Dairy processors/importers | ▲Cheaper input costs | ▼Potential farm supply strain |
