July 10, 2007

Hungary's poultry production stymied over uncertainty in state aid

The Hungarian poultry industry would need Ft 5.5 billion (US$30 million) in additional state support for the second half of 2007 to stabilise production, according to the country's Poultry Council.

Despite rising prices, the poultry sector has been experiencing difficulties maintaining profitable production, the Council said. Rising feed prices due to the poor grain harvest harvest has dealt a heavy blow to a industry that it is still recovering from bird flu, the council said.

To worsen the situation, poultry imports have been rising while exports have been affected by the country's currency appreciation.

State subsidies were only available up until April 30 and the date and size of any subsidies in the second half of this year have been uncertain, a fact which has led to farmers reluctance to begin production for the second half of the year.