Milk powder market in Hungary

Earlier Report Observations

The Hungarian milk powder market volume grew from 13 468 t in 2018 to 19 988 t in 2021. This upward trend was initially supported by EU intervention measures, including fixed-price public purchases of skimmed milk powder between March and September 2018, which helped stabilize producer revenues. The simultaneous introduction of mandatory monthly reporting for dairy processors and producers improved market transparency, facilitating more informed supply chain decisions.

Market volume peaked at 21 477 t in 2022, bolstered by lower international dairy prices that encouraged imports and by the rapid growth of online retail together with the entry of new market participants, which expanded distribution networks. In 2023, the market contracted to 17 789 t as rising raw milk costs squeezed production margins and exchange rate volatility increased import expenses, discouraging domestic consumption.

Production milk powder in Hungary

In kind, 2018-2021, K t

Top producers of milk powder, 2018-2021

World map of production of milk powder, 2018-2021

Hungary's milk powder production has increased for the third consecutive year. In 2021, the country produced 11 thousand tons of milk powder, marking a 1.0% year-over-year rise. Between 2018 and 2021, production grew by 15.4%, which translates to an annualized rate of 4.9%.

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

Exports milk powder from Hungary

Exports in kind, t

The market showed significant fluctuations during this period. Exports reached their lowest point in 2019 at 112 tons, with the largest decline that year at 72.7%. In contrast, 2020 saw the largest increase at 993.5%. By 2021, Hungary exported 1 850 tons of milk powder, a 51.3% increase from the previous year. The difference between the peak in 2021 and the trough in 2019 was 17-fold.

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

From 2018 to 2021, the Netherlands, Poland, and Bulgaria were the key partners for Hungary's milk powder exports in kind. The Netherlands accounted for 48.6% of exports, Poland for 21.3%, and Bulgaria for 7.5%. Together, these three countries represented 77.4% 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

Market behavior was volatile during these years. Exports hit a low in 2019 at 293 thousand US dollars, with the largest decline that year at 67.3%. In 2020, the largest increase occurred at 864.1%. By 2021, milk powder shipments from Hungary reached 5 497 thousand US dollars, a sharp 94.6% rise from the year before. The variation from the 2019 low to the 2021 high was 19-fold.

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

Between 2018 and 2021, the Netherlands, Poland, and Bulgaria contributed the most to Hungary's milk powder exports in value terms. The Netherlands made up 49.1% of exports, Poland 20.8%, and Bulgaria 7.5%. Collectively, they accounted for 77.4% 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 milk powder to Hungary

Imports in kind, t

Hungary's milk powder imports have risen for the third year in a row. In 2021, imports stood at 10 826 tons, which is 24.1% higher than in 2020. From 2018 to 2021, imports increased by 149.7%, equating to an annualized growth rate of 35.7%.

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

During 2018–2021, Italy, Czechia, and Poland were the main sources for Hungary's milk powder imports in kind. Italy accounted for 35.0% of imports, Czechia for 20.5%, and Poland for 14.1%. Together, these three countries represented 69.7% of total import flows.

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

Hungary's milk powder import volumes have increased for the third consecutive year. In 2021, imports totaled 18 494 thousand US dollars, reflecting a robust 24.4% year-over-year gain. Between 2018 and 2021, imports grew by 71.7%, which corresponds to an annualized rate of 19.7%.

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

From 2018 to 2021, Czechia, Poland, and Germany were the primary suppliers of milk powder to Hungary in value terms. Czechia accounted for 24.7% of imports, Poland for 19.0%, and Germany for 17.6%. Together, they comprised 61.3% of total imports in value terms.

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

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