Hungarian agricultural sectors face economic challenges

Hungarian agricultural producers are facing significant economic challenges across different sectors. The Southern Great Plain Horticulturalists' Cooperative (DélKerTÉSZ) is advocating for a reduction in the Value Added Tax (VAT) for fruit and vegetable producers from the current 27 percent to 5 percent. According to DélKerTÉSZ Managing Director Sándor Nagypéter, this change is necessary to improve competitiveness, combat the grey market, and support small and medium-sized enterprises. The cooperative suggests a decision should be made by early 2027.

In the dairy sector, despite an 8 percent increase in milk yield per cow during the first nine months of 2026, farmers are struggling due to low purchase prices. While productivity has improved, milk revenue per cow has dropped by approximately 20 percent, sometimes falling below production costs. To address these difficulties, MBH Bank has strengthened its strategic partnership with the Interprofessional Dairy Organization and Product Council to provide better financing and support initiatives to boost domestic milk consumption.