A serious rush is expected for milk with a fat content of 2.8 percent in stores before the price cap is introduced on August 1, Miklós Istvánfalvi, the president of the Tej Terémtánács, told Portfolio.
Of course, the specialist cannot comment on the purchase price of 2.8 UHT milk per store, but he revealed that the milk
the average processor transfer price is currently net HUF 250 per liter.
This includes the 5 percent VAT (milk is not taxed at 27 percent).
In peacetime, 1.5 percent milk is cheaper
The national delivery price of UHT milk with a 1.5 percent fat content – which is cheaper in peacetime – is HUF 252 net, and the rule that it cannot be sold for more than the purchase price does not apply to it.
In principle, the more expensive 2.8 milk will most certainly be sold above HUF 250 – if this product is not included in the 15 percent sale – without a margin, and the price of 1.5 percent milk is determined by the store . They can also discount 15 percent of the price if it is their turn as part of the mandatory promotion.
The price of 2.8 percent UHT milk was frozen by the shops at the price of October 15, 2021. According to the KSH, the average consumer price of this milk has been between HUF 286-304 since then. ESL (requiring refrigeration) milk is much more expensive than this, the 2.8 is between HUF 530-550, and the 1.5 is between HUF 490-520.
On the GVH price monitoring page, the consumer price of 2.8 UHT milks currently varies between HUF 206 and HUF 320, but this includes current promotions. 1.5 percent UHT milks are currently more expensive than this: they range between HUF 260 and HUF 600.
Although the exact amount is not known, it can be strongly assumed that the consumer price of 2.8 milk may be somewhat higher than the current, frozen price, which will be increased, for example, by the amendment of the government regulation related to the extended producer responsibility (EPR) system. Miklós Istvánfalvi puts this increase at HUF 9-10.
2.8 UHT milk is currently a price-stop product, which will be subject to special rules from August 1.
- In the stores affected by the mandatory promotions, the price of the product types with the price tag cannot temporarily be higher than the purchase price.
- Two products of the 8 product range must be offered at a price at least 15 percent lower, so that the 15 percent discount must be provided in relation to the purchase price.
The amount of the mandatory campaign will also change, from the current 10 percent to 15 percent.
The government will extend the new rules only to stores with an annual revenue exceeding one billion forints, that is, the price cap will be abolished in small stores, and in the case of typically Hungarian chains, they will no longer be involved in pricing.
Cover image: Getty Images
