In an announcement on Tuesday, the ministry said the transaction would pose "significant risk" to the security of food supply. It noted that Alfoldi Tej accounts for close to 20pc of farm gate purchases of milk in Hungary.

Under foreign ownership, local manufacturing output would fall as raw milk is exported and the price of dairy products produced abroad climbs, while popular brands disappear from local store shelves, it added.

The state is weighing an offer to purchase Alfoldi Tej for the same conditions planned for the sale to the foreign investor, the ministry said.

It added that the Agriculture Ministry and the Dairy Products Council had agreed that that the sale to the foreign investor would pose risks.

"The government's aim is to renew and develop the food industry, while preserving and further strengthening sovereignty, and ensuring high-quality and affordable food to all Hungarian households," the ministry said.

The planned acquisition of a 100pc stake in Alfoldi Tej by the foreign investor was reported to authorities on June 5.


Source: MTI – Hungary’s national news agency since 1881. While MTI articles are usually factual, some may contain political bias, and readers should be aware that such content does not reflect the position of XpatLoop, which is neutral and independent.

Since the goal of XpatLoop is to keep readers well briefed, right across the spectrum of opinions, MTI items are shared to ensure readers are aware of all narratives within the local media.

XpatLoop believes in empowering readers to form their own views through complete and comprehensive coverage. To facilitate this XpatLoop has a balanced range of news partners, as you can see when you surf around XpatLoop.com

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