Drop in pork VAT reduces demand and price of poultry

EU

pixabay

As demand for poultry dropped in January so did prices, in response to a decrease in the price of pork caused by a drop in VAT from 27% to 5% as of the beginning of this year, Hungarian daily Magyar Idők reported today.

In year-on-year terms, farmgate prices for poultry fell by 6%, according to a report by the Agricultural Research Institute, as consumers opted for pork over the course of the month, Magyar Idők reported. According to data published by KSH, pork prices dropped 17.2% in the month of January, in year-on-year terms.

The VAT cut on pork gave the meat a competitive edge that poultry producers have only been able to offset by reducing prices, László Bárány, head of the Hungarian Broiler Association, told the paper, according to Hungarian news agency MTI.

Hungary’s poultry producers were reported to be in a panic as the cut to the VAT on pork has led to a significant drop in demand for poultry meat, and other food sectors were reportedly lobbying for similar VAT decreases.

In a follow up to the reduction of VAT on pork, Hungary was reportedly considering a cut on the VAT rate of milk as part of a measure to support the dairy industry.

ADVERTISEMENT

Purchasing Managers' Index rises Analysis

Purchasing Managers' Index rises

Lawmakers approve residency permit for digital nomads Parliament

Lawmakers approve residency permit for digital nomads

The strongest move - Morgan Stanley Hungary head and Chess F... Podcasts

The strongest move - Morgan Stanley Hungary head and Chess F...

New Jewish cultural hub opens in Budapest City

New Jewish cultural hub opens in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 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.