In July 2023, the Hungarian Competition Authority (GVH) has concluded its sector inquiry into the domestic dairy industry, intending to tackle inflation and enhance the competitiveness of local producers. Key measures have been identified and initiated to achieve these goals.

The GVH initiated an expedited sector inquiry into the dairy market, as part of its broader focus on food markets, in January 2023. The investigation led to six key recommendations:

1. Revising the raw milk pricing formula to better reflect market conditions.
2. Considering changes to existing legislation that governs food price caps.
3. Implementing measures to enhance the transparency and comparability of consumer prices.
4. Improving the market position of plant-based beverages.
5. Promoting sustainable packaging in the industry.
6. Recommending further regulatory intervention in the food retail sector.

Several of these recommendations have already been put into action. Notably, price caps for dairy products have been phased out starting August 1, and the Dairy Product Council is in the process of reviewing the methodology of raw milk price forecasting. Additionally, the authority launched an online price-monitoring system on July 1, which provides consumers with the ability to track and compare the daily prices of various dairy products across multiple retail chains (the system provides consumers with the tools to compare prices of over 60 product groups across a network of about 1,200 stores in six retail chains, enabling them to identify the best offers and most suitable products for their needs).

The sector inquiry by the GVH shows how much basic consumers goods (such as dairy products) are in the focus of competition authorities, since the competitive environment of such products directly affect the daily lives of millions of consumers. It is therefore expected - especially in the current difficult economic situation - that both the GVH and other national competition authorities in Europe will keep a close eye on the producers, distributors and retailers of these goods. Market players should thus remain vigilant and prepared for any regulatory and/or administrative steps that may be taken in this regard.  

Further information about the report can be found here (in Hungarian): Végleges a GVH jelentése a tejágazat vizsgálatáról - GVH