Hungary-Turmoil in meat industry.

HUNGARY-PROBLEMS IN MEAT INDUSTRY.

Hungary’s meat industry is facing serious difficulties because of the lowering demand and a lack of investment caused by the global financial crisis.

President for the Association of Meat Producers, Tamás Éder, warned last week that processors will have to cut production costs if they want to survive.

Retail sales decline

Domestic retail sales of meat declined 2% - 3% in 2008 and the consumption fell by 1.5% - 2% compared to 2007.

According to the Association, whose members are responsible for 70% of total pig and 90% of cattle slaughtering, there will be another drop in domestic sales this year.

Also, it has been reported that surplus production is unlikely to be absorbed by export markets which have slowed down recently.

Processors are also experiencing serious difficulties accessing new loans, according to the Association.