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Official: Hungarian dairy sector ready for new EU system

The Hungarian dairy sector is prepared to operate in the new system after the European Union phased out milk quotas on April 1, moreover it is expected to gain from the changes, agrarian ministry state secretary György Czerván told Hungarian news agency MTI late yesterday.

Phasing out milk quotas will leave no cap to milk production in the EU, the secretary noted adding that most countries produced below their quota. Hungary too, used up only 75-80% of its quota, he added.

According to Czerván, the ministry was able to raise the direct annual support, both domestic and EU, for the sector to approximately HUF 50 bln from HUF 26 bln. The secretary added that another HUF 42 bln would be established as marketing fund based on consultations with thte dairy product council.

It is necessary to develop the processing industry, the state secretary said, adding that the resources opening up in the new budget period make about HUF 300 bln available for food industry developments.