Lard and poultry fats market in Hungary

Earlier Report Observations

The Hungarian lard and poultry fats market began the period with production at 104 thousand tons in 2018, supported by regulatory changes that enabled the operation of small slaughterhouses and mobile processing facilities, alongside the entry of new state-owned and private companies into the poultry and pork processing sector. However, production volume gradually decreased to 95.7 thousand tons by 2020, a period marked by a shift in feed composition within the poultry segment and ongoing privatization in the meat processing industry, which altered the supply structure.

A temporary recovery to 98.1 thousand tons occurred in 2021, driven by innovations in animal nutrition, including the development of fermented feeds and natural components aimed at optimizing feed utilization and fat digestibility for poultry. This upturn was sharply reversed in 2022 when severe feed cost inflation, high input prices, and disease outbreaks such as avian influenza significantly reduced profitability. These pressures led approximately one-third of poultry farmers to cease operations, contributing to a production drop to 92 thousand tons that year.

By 2023, production fell further to 87.3 thousand tons, and total market size contracted to 88.2 thousand tons. Although regulatory amendments in May 2022 allowed small producers to sell their goods nationwide, this measure could not offset the overarching market contraction caused by prolonged high production costs, animal disease challenges, and a broader consumer shift towards white meat, which impacted the demand for traditional fats.

Production lard and poultry fats in Hungary

In kind, 2018-2021, K t

Hungary was one of the world's leading producers of lard and poultry fats from 2018 to 2021, ranking 13th globally by production volume during this period.

Top producers of lard and poultry fats, 2018-2021

World map of production of lard and poultry fats, 2018-2021

After a two-year decline, lard and poultry fats production in Hungary increased in 2021. The country produced 98.1 K t that year, marking a slight gain of 2.4% compared to 2020. Over the 2018-2021 period, production decreased by 5.7%, with a compound annual growth rate of -1.9%. The lowest production level was recorded in 2020 at 95.7 K t, with the largest decline of 5.3% occurring that same year.

Annual dynamics of production in Hungary in kind, 2018-2021, K t

Exports lard and poultry fats from Hungary

Exports in kind, t

Following a two-year decline, Hungary's exports of lard and poultry fats increased in 2021. Exports totaled 4 353 t that year, representing a 16.3% rise compared to 2020. Between 2018 and 2021, exports decreased by 33.7%, equating to an annualized decline of 12.8%. The lowest export volume was recorded in 2020 at 3 742 t, while the largest decline of 35.7% occurred in 2019.

Annual dynamics of product's exports from Hungary in kind, 2018-2021, t

From 2018 to 2021, Italy, Slovakia, and France formed the main cluster of markets for Hungary's lard and poultry fats exports in kind. Italy accounted for 34.1% of exports, Slovakia for 24.5%, and France for 21.8%, with these three countries together representing 80.4% of total export flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Hungary in kind, 2018-2021

Exports in value, K $ US

The market showed signs of volatility during the observed period. Hungary exported 7 217 K $ US worth of lard and poultry fats in 2021, reflecting a sharp improvement of 123.8% compared to 2020. The lowest value was recorded in 2020 at 3 224 K $ US, with the largest decline of 40.2% occurring in 2019. From 2019 to 2021, exports varied by 2.2 times between their peak and trough.

Annual dynamics of product's exports from Hungary in value, 2018-2021, K $ US

From 2018 to 2021, France, Slovakia, and Italy were the principal destinations for Hungary's lard and poultry fats exports in value terms. France accounted for 42.4% of exports, Slovakia for 16.3%, and Italy for 11.2%, with these three countries jointly accounting for 70.0% of total export flows.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Hungary in value, 2018-2021

Imports lard and poultry fats to Hungary

Imports in kind, t

There were noticeable fluctuations in market performance during the period. Hungary imported 5 574 t of lard and poultry fats in 2021, showing an advance of 151.9% year-over-year. The minimum value was recorded in 2020 at 2 213 t, with the largest decline of 28.5% occurring in 2019. From 2020 to 2021, imports varied by 2.5 times between their low and high points.

Annual dynamics of product's imports to Hungary in kind, 2018-2021, t

From 2018 to 2021, Slovakia, Austria, and Poland together accounted for 87.5% of Hungary's total imports of lard and poultry fats in kind, remaining the main sources. Slovakia contributed 39.5% of imports, Austria 27.5%, and Poland 20.5%.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Hungary in kind, 2018-2021

Imports in value, K $ US

There were noticeable fluctuations in market performance during the period. In 2021, Hungary imported 6 648 K $ US worth of lard and poultry fats, up by 145.4% year-over-year. The minimum value was recorded in 2019 at 2 402 K $ US, with the largest decline of 32.0% occurring that same year. From 2019 to 2021, imports varied by 2.8 times between their minimum and maximum levels.

Annual dynamics of product's imports to Hungary in value, 2018-2021, K $ US

Over the 2018-2021 period, Slovakia, Austria, and Poland were the primary suppliers of lard and poultry fats to Hungary in value terms. Slovakia accounted for 39.0% of imports, Austria for 25.0%, and Poland for 19.8%, with these three countries jointly accounting for 83.7% of total import flows.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Hungary in value, 2018-2021