Farm economist György Raskó told the paper that only one-third of this year’s crop is of milling quality, the lowest ratio in a long time.

Népszava noted that Hungary’s bakery industry has been pressing the government for years to lower the VAT rate on their products from 18 percent to 5 percent. Bakers’ margins now stand at just 0-2 percent, making capital expenditures impossible.

The industry is also struggling with a shortage of 2,500-3,000 labourers who have gone abroad to seek higher-paying jobs.

Hungarian Grain Association chief secretary Zsófia Potsa told the paper that the country’s milling industry has been loss-making for years.

Republished with permission of Hungary Matters, MTI’s daily newsletter.