Hungary Blocks Overseas Takeover Of Alföldi Tej Dairy Cooperative

Credit: Alföldi Tej Facebook page

Hungary has blocked nan projected acquisition of dairy institution Alföldi Tej by an overseas consortium connected nan grounds it would airs a consequence to nutrient security.

A authorities connection issued connected behalf of nan Ministry of National Economy said a takeover attack for nan business was received successful June from what was described arsenic a “foreign-owned group of companies”.

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None of nan willing parties were named arsenic nan Ministry said it had “banned nan acquisition”, adding nan “security of nutrient proviso for Hungarian families is paramount and nan transaction would person posed a important consequence to it”.

As a compromise, nan authorities said Alföldi Tej had projected moving nan dairy cooperative into authorities ownership nether nan aforesaid conditions arsenic those planned nether nan overseas takeover approach.

The connection is being considered by authorities authorities, according to nan statement.

Just Food has asked Alföldi Tej to remark connected nan 2 sets of proceedings and whether it was capable to uncover nan willing parties from abroad.

Hungary’s Ministry of Agriculture and nan dairy manufacture typical body, nan Milk Product Council, aliases Tej Terméktanács, person agreed pinch nan government’s conclusions complete nan nutrient information consequence and backed nan banned takeover from overseas.

Alföldi Tej accounts for almost 20% of nan home earthy beverage purchases from section farmers, nan authorities connection noted.

“Due to its important marketplace share, overseas ownership could origin important marketplace disruption successful home beverage accumulation and purchases, arsenic good arsenic a precocious consequence of information of supply,” it said.

“If nan Hungarian-owned Alföldi Tej Kft were to autumn into overseas hands, nan capacity of nan home processing manufacture would decrease: earthy beverage would beryllium exported and dairy products produced overseas would beryllium purchased astatine higher prices than before, and well-known and celebrated products would vanish from nan shelves of home stores.”

Alföldi Tej owns 2 main dairy brands, Magyar Tej and Riska, complemented by nan smaller lines of Pure Milk and nan Mesés marque targeted astatine children.

The co-op operates 2 dairy plants successful Székesfehérvár and Debrecen and employs much than 700 section people, according to its website.

The merchandise line-up includes caller and UHT milk, beverage powders, cream, kefir, yogurts and cheese.

It processes astir 270 cardinal litres of beverage annually supplied by 59 farmers.