The Hungarian Competition Authority (GVH) has released the findings of two accelerated sector investigations into the domestic dairy and table egg markets, revealing a complex interplay of cost increases, supply chain shifts, and the influence of regulatory tools on pricing trends.
Launched in April 2025 in response to pronounced consumer price volatility, the investigations explored developments across the entire value chain—from producers to processors to retailers—using data from over 230 market participants. GVH President Csaba Balázs Rigó initially justified the probes by pointing to substantial price hikes in both product categories that had significantly impacted food inflation.
Dairy Sector: Mixed Impact of Market Forces and Regulatory Action
The investigation into the dairy sector confirmed that a range of structural and economic factors contributed to rising consumer prices in 2024–2025. Among the key drivers were the Europe-wide increase in raw milk prices, rising labor and utility costs, and shifts in value chain income distribution toward producers and processors.
However, the GVH also noted that several of its earlier recommendations and initiatives helped temper price growth. The abolition of the basic price forecast for raw milk—first proposed by the GVH in 2023—contributed to a decline in Hungary’s raw milk prices below the EU average. In parallel, the online Price Monitoring System introduced in mid-2023 led to a notable reduction in retail margins for dairy products, with gross margins in major retail chains dropping by approximately 10 percentage points.
Furthermore, the margin reduction measure implemented in March 2025 is credited with easing consumer prices during the first half of the year. The investigation also assessed the pricing structure of plant-based dairy alternatives and provided an international perspective by examining similar inquiries and pricing trends across European markets.
Egg Sector: Rising Costs and Structural Transition Drive Price Hikes
The GVH’s analysis of the table egg market revealed that the steep price increases since late 2024 were primarily driven by higher input costs and structural changes in production. Feed and energy costs, along with labor and logistics expenses, were key contributors to the price surge. In addition, egg producers continue to grapple with recurring losses linked to avian influenza outbreaks.
A major cost burden for many producers has been the shift away from cage-based production systems to alternative housing models, in line with evolving consumer preferences. These investment-heavy transitions have exerted further upward pressure on prices. The GVH also identified seasonal demand patterns and retail purchasing practices as amplifiers of price fluctuations.
Public Consultation and Next Steps
The draft findings of both sector investigations are now available for public consultation on the GVH’s website. Stakeholders are invited to submit written feedback by 25 August 2025. The GVH will publish final reports, a summary of received comments, and—upon request—the full submissions, later this year.
The investigations show that the GVH is becoming more than just a watchdog for fair competition—it’s also keeping track of price changes and helping make sense of what’s really driving food costs in Hungary.
Links to the draft reports: GVH website
