Hellenic Dairies’ Central Europe expansion hits political roadblock amid fears of raw milk supply disruption
In a bold move that intertwines geopolitics with agribusiness, the Hungarian government has officially blocked the acquisition of Alfoldi Tej Kft by Greece’s largest dairy conglomerate, Hellenic Dairies Group. Despite shareholder approval and a proposed restructuring plan by the Greek firm, Hungarian authorities vetoed the deal, calling it a potential threat to national food security.
The acquisition attempt, routed through the group’s Romanian subsidiary, aimed to revamp Alfoldi Tej’s operations with significant capital investments and fresh product development. However, Hungary’s Ministry of National Economy intervened, warning that the deal could result in the diversion of domestic raw milk to foreign markets, increasing the country’s reliance on expensive dairy imports.
“Protecting Hungary’s food supply chain is paramount,” the ministry said, labeling the proposed deal as posing “significant risks” to the national dairy sector.
🚫 Why the Hungarian Government Blocked the Deal
- Concerns over raw milk supply: Officials feared Greek ownership might redirect raw milk procurement or shift production outside the country.
- Food sovereignty narrative: The Orbán-led administration emphasized national control over key agri-resources, including milk.
- Strategic industry protection: Analysts suspect informal lobbying by domestic players who could be threatened by Hellenic Dairies’ market entry.
🏭 Alfoldi Tej Kft: A Key Player in Hungary’s Dairy Supply
- 270 million litres of milk processed annually
- Two major plants in Székesfehérvár and Debrecen
- Brands include Riska, Magyar Tej, Pure Milk, and Meses
- Despite strong turnover (~€190 million in 2023), the company has reported losses since 2021
Hellenic Dairies had proposed revitalising the company with modern infrastructure, new product lines, and farmer-support initiatives. The group claimed its entry would strengthen, not weaken, Hungary’s dairy sector.
🇬🇷 Hellenic Dairies’ Expansion Strategy Stumbles
The blocked deal is a rare setback for Hellenic Dairies, which has expanded aggressively in Romania, Bulgaria, Cyprus, and within Greece. With successful acquisitions like Dodoni, the company has become a regional dairy powerhouse, exporting to more than 35 countries.
However, the Hungarian roadblock signals that dairy sector investments are increasingly subject to political risk, especially in Central and Eastern Europe, where food sovereignty narratives are gaining traction.
