Hungarian food industry magnate Sándor Csányi brushed off complaints by a farm ministry state secretary that his flagship company Pick Szeged, one of Hungary’s best known salami makers, is buying hogs from abroad while domestic farmers cannot sell their livestock, speaking in an interview published in weekly Heti Válasz.
Asked about comments by József Ángyán concerning Pick Szeged’s use of imported materials, when its products are considered a “Hungaricum”, Csányi said the company has no other choice because of the low stock of hogs in Hungary and the high cost of raising them.
“I’m ready to pay József Ángyán a commission if he can get Hungarian sows of appropriate number and quality for Pick Szeged,” Csányi said.
The stock of hogs in Hungary has plunged to 3 million, a historical low, thus there are not enough sows. The number of sows is around 200,000 and as many as 70,000 are slaughtered each year, about half non-commercially. Pick Szeged can buy only 20,000-25,000 fatted hogs a year on the domestic market, but it needs 50,000 to make its salami, he explained.
Hungarian hog farmers failed to use support to make investments in technology and breeds before the country joined the EU, thus the cost of raising hogs is now higher than the EU average, Csányi said. Anybody who cannot keep the cost of raising hogs under €1.05-1.10 per kilogram can not remain competitive, he added.
“The input cost is so high that even if we put a cockade [a Hungarian national symbol – ed.] in the pig’s ear, we still won’t be able to sell the high-priced salami made from them,” he said.
The problem is not the price; development is the solution, he added.
Producing journalism that is worthy of the name is a costly business. For over 30 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
