Hungarian pork processors hit hard by swine fewer
Rising live pork prices due to the swine fewer have hurt Hungarian meat processors. MCS Vagohid, one of the country’s largest slaughterhouse reported a HUF5bn loss in 2019 and HUF10bn since it began operations in Mohacs (southern Hungary) three years ago, local media reported on June 8.
The facility, a unit of agrobusiness holding Bonafarm, owned by OTP CEO Sandor Csanyi, is operating at 90% of its capacity. The facility located in Mohacs (southern Hungary) was inaugurated in April 2017 from a greenfield investment of HUF24bn.
Around three-quarters of the standard-weight hogs processed at the slaughterhouse come from farms of the Bonafarm group.
Although the government provided subsidies to promote pig breeding the number of hogs fell below 3mn last year. Six years ago it planned to double the livestock from 3mn to 6mn. The VAT on pork was cut from 27% to 5% in 2016.
MCS Vagohid revenue increased by HUF15bn to HUF63bn last year, of which HUF25bn came from exports, which means a two-fold increase from 2018.
The company processed 900,000 pigs and 50,000 sows, which means that the company operated full capacity with a single shift.
Read full article Share on twitter