Hungary rises to EU organic demands
to establish an organic poultry processing plant, which will
largely serve the EU export market.
Situated in Petnehaza, north eastern Hungary, the HF900 million (€3.6 m) project took six months to complete and now includes a 4,200 square metre facility devoted to the processing of whole chicken and finished chicken products without the use of antibiotics or artificial feed.
The project was part-funded by the EU and the Hungarian government. EU SAPARD funding put up HF50 million, while various state bodies put up a total of HF310 million, while Master Good raised the rest through its own funds and bank loans.
The plant currently employs 120 workers and will process chickens at the rate of 15,000-25,000 a day. However the plan is to step up production during the course of the next six months by approximately 25 per cent, by which time an estimated 50 more employees will have been taken on.
The plant was ready in January, when test production began, and official export certification was granted on 23 March, allowing the company to export throughout the EU. The facility is now ready to assume production in time for Hungary's accession to the EU on 1 May.
As well as Master Good, Barany also owns several other meat processing operations, including a free-range poultry processor and feed operation, Baromfi Coop, as well as pig processing operation, Rohodi Hus. In 2003 the combined performance of the three companies led the group to achieve a HF300 million profit, due mainly off the back of the HF2.3 billion sales derived from the Baromfi Coop operations.
According to the Hungary Poultry Product Council, the country currently processes approximately 200,000 tons of poultry meat a year. Of this total around 1,000-2,000 tons is organically produced, making Master Good a clear market leader in the country, once it goes into full production.
"Although the market for organic poultry meat in Hungary is small it is definitely growing," said Tony Gere, spokesperson for the Hungary Poultry Product Council. "Right now the market is limited to larger supermarket outlets in the Budapest region, but we are anticipating that the market for this kind of poultry meat will spread fairly rapidly in the future."
