Hungary’s raw milk market has shown its first clear sign of stabilization after several months of declining producer prices, with the national average price increasing in August 2026. According to the latest data from Hungary’s Institute of Agricultural Economics (AKI), the average producer price for raw milk reached 128.57 forints per kilogram in August, up 1.7% from July.
Despite the monthly increase, prices remain significantly below levels recorded a year earlier. The August price was 35.3% lower year-on-year, highlighting the continued financial pressure facing Hungarian dairy farmers.
The August increase follows several months of declining prices. The national average stood at 129.12 forints per kilogram in June before falling to 126.45 forints in July. The subsequent increase in August brought the downward trend to an end.
Export market shows stronger improvement
Export data provided another positive signal for Hungary’s dairy sector.
The average export price of raw milk increased to 141.86 forints per kilogram in August, representing a 5% increase compared with July. The export price was therefore around 10.3% higher than the domestic producer price.
Export volumes also increased substantially. Hungary’s raw milk exports rose by 9.5% month-on-month and were 20.3% higher than the same month a year earlier.
The combination of higher export prices and stronger volumes suggests that external demand is becoming increasingly important for Hungary’s dairy market as domestic conditions remain challenging.
Domestic milk purchases continue to decline
While export activity increased, milk purchases within Hungary moved in the opposite direction.
Dairy processors purchased approximately 102,394 tonnes of raw milk in August, down 2.2% from July and 4.6% compared with August 2025.
The decline in milk purchases could indicate tightening supply conditions. If production and available milk volumes continue to fall while demand remains stable, the reduced supply could provide additional support to producer prices.
However, the August data alone are not sufficient to establish whether this represents a sustained change in market conditions.
Hungarian prices remain below EU average
The gap between Hungarian and European Union milk prices remains significant.
In July, the average raw milk price in Hungary was approximately €35.25 per 100 kilograms, compared with an EU average of €42.05 per 100 kilograms.
Hungary’s price declined by around 29.1% over the year, while the EU average fell by approximately 20.4% during the same period.
The comparison highlights the greater pressure experienced by Hungarian dairy producers during the recent market downturn.
Feed conditions could influence future prices
The recent price movement comes amid concerns about milk supply and feed availability across Europe.
Drought conditions and deteriorating feed availability have raised concerns that the previous milk surplus could begin to decline. A reduction in milk production could gradually tighten supply and provide support to prices.
Another indicator came from the FAO Food Price Index, whose dairy price component increased in August after four consecutive months of decline.
These developments provide some evidence that international dairy markets may be moving toward a different supply-demand balance. However, the Hungarian market remains exposed to domestic production costs, feed availability, export demand and wider European dairy conditions.
Recovery remains uncertain for farmers
Despite the August improvement, Hungarian dairy farmers continue to face a substantial price gap compared with the previous year.
The August producer price of 128.57 forints per kilogram remained around 70 forints below the 198.67 forints per kilogram recorded a year earlier.
This means that the monthly price increase has not yet translated into a meaningful recovery in annual terms. Producers continue to face pressure from operating costs while dealing with significantly lower milk revenues.
The sector’s professional organization has repeatedly called for government measures to address the difficulties facing dairy producers, although it says its proposals have so far not resulted in significant action.
Market may be approaching a turning point
The latest figures suggest that Hungary’s raw milk market could be approaching a stabilization point after a prolonged period of declining prices.
Higher domestic producer prices, stronger export prices and volumes, and declining milk purchases are all developments that could contribute to a tighter market balance.
Nevertheless, the August increase should not yet be interpreted as a definitive recovery. Future movements will depend on milk production, feed conditions, domestic demand, export markets and developments across the wider European dairy sector.
For Hungarian dairy farmers, the immediate improvement provides a potential sign that the prolonged price decline may be slowing, but the sector continues to operate well below the price levels seen a year earlier.