The Hungarian Ministry for National Economy has blocked the attempted foreign acquisition of Alföldi Tej Kft., one of the country’s largest dairy processors. The ministry cited national strategic interests and the potential risk to food security as the reasons behind the decision.
As Világgazdaság reported, the intended buyer was Olympos, a Greek-owned dairy company with business operations across several countries in the region.
The move follows an official notification received by the ministry on June 5, 2025, disclosing that a foreign-owned corporate group sought to purchase 100% of Alföldi Tej, a Hungarian-owned company. The ministry, in cooperation with the Ministry of Agriculture, reviewed the sales contract and concluded that the deal posed a potential threat to Hungary’s national interest.
The food supply of Hungarian families is a top priority, and this transaction posed a significant risk,”
the ministry said in its statement.
The dairy sector is classified as strategically significant, employing over 15,000 people in Hungary. Alföldi Tej currently handles nearly 20% of all raw milk procurement in the domestic market. In the ministry’s view, foreign ownership could have caused serious market disruptions and introduced high supply security risks.
The Ministry of Agriculture and representatives of the Milk Product Council reportedly agreed with the decision, underlining the potential impact on both producers and consumers.
Officials warned that if the sale had gone ahead, Hungary’s domestic processing capacity would likely have decreased. This could have resulted in more raw milk being exported, while finished dairy products would return at higher prices, and familiar local brands could vanish from supermarket shelves.
Following the government’s decision, Alföldi Tej offered to sell its ownership stake to the Hungarian state under the same terms originally presented to the foreign buyer. The state is currently evaluating the proposal.
Fact
Founded in 2003, Alföldi Tej is a key player in Hungary’s food industry, generating revenue of HUF 74 billion (cc. EUR 190 million) last year. The company processes around 270 million liters of raw milk annually and operates under a cooperative model, sourcing directly from its Hungarian farmer-owners.
The company runs two major facilities in Székesfehérvár (central Hungary) and Debrecen (eastern Hungary).
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The Székesfehérvár plant produces UHT and ESL milk, flavored milk, cream, yogurt, kefir, and sour cream.
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In Debrecen, the focus is on traditional curd cheese, various cheeses, and a dedicated cheese plant opened in 2018.
Its product portfolio includes well-known Hungarian brands such as Magyar Tej and Riska, as well as niche lines like Pure Milk (targeting health-conscious consumers) and Mesés, aimed at children.
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Via Világgazdaság; Featured image: Pixabay
The post Dairy Deal Dead: Foreign Takeover of Leading Milk Producer Blocked appeared first on Hungary Today.
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