Hungary: One of Budapest's municipalities to reduce food waste with a new school lunch program

Budapest district to introduce self-service school cafeterias

Gergely Őrsi, mayor of District II in Budapest, has announced on Facebook that self-service open buffet lunches will be introduced in multiple schools in the district. In the new system, students will be able to pick and choose from a variety of meals and serve themselves instead of receiving pre-determined portions from staff.

The mayor stated that this will have multiple benefits. According to Mr. Őrsi, past experience from other municipalities shows that the practice reduces food waste. Moreover, instead of spending most of their lunch break waiting in line, students would be able to get their food faster, with more time to properly eat their meals. Mr. Őrsi stated that in places where self-service buffet lunches were introduced, food waste had decreased drastically, to one-tenth of what it had been previously. Mr. Őrsi added that they had surveyed the system in work in Zugló (District XIV of Budapest).

Budapest’s schools are not the first to introduce similar school lunch schemes however. In 2024, the Hungarian edition of Deutsche Welle reported on the introduction of buffet lunches at a school in Sándorfalva, in Csongrád-Csanád County, South Hungary. Within a year of operation, the program had drastically reduced food waste, and incentivized school children to try out a wider variety of meals.

Ministry expects voluntary food price reductions

Following talks about a potential reintroduction of price caps by the minister for economy last week, the Ministry of National Economy published a press release on Wednesday calling for “voluntary price reductions” by retail companies. The release reads, “What is happening these days in stores is unacceptable, the increase of prices, for the sake of families and senior citizens, must be stopped!” It also adds that the ministry is in “intense talks” with companies on the market and “is expecting retail chains to signify their intentions within a week.”

The main product groups that the government is targeting for price reduction are chicken meat, pork, cooking oil, eggs, milk and dairy, flour, sugar and “other basic foods”. The release adds that “with the voluntary price reduction policy, the Ministry of National Economy expects commercial entities to contribute to the stabilization of food prices by reducing their current profit margins.” The ministry believes that in the recent period, the margin between wholesale prices and retail prices increased. The release adds that in case of a failure of getting results from the “voluntary price reduction,” the ministry will “use regulatory tools” against “those who increase  prices.”

Earlier in February, Telex.hu published an interview with Dávid Németh, leading analyst of K&H Bank. Inflation in January was 5.5%, higher than the worst projections, and food inflation stood at 6%. According to the analyst, inflation might shrink later in the year to 4.5-5%. The most surprising trend was the increase of service prices by 2.2% m-o-m in January. The depreciation of the Hungarian Forint played a central role in the increase of inflation, while in 2024 the mean exchange rate was 395 Forint to the euro, in the first six weeks of 2025, exchange rate was 410 Forint to the euro. Meanwhile, minimum wage is increasing by 9%, and guaranteed minimum income by 7%, while currently even a 5% real wage increase is unfeasible for most companies, the analyst told the portal.

Experts weigh in on price caps: “Everyone would lose”

Agrárszektor.hu interviewed experts on the possibility of the reintroduction of the price caps. According to the portal, experts agree: The policy would not decrease inflation rapidly, however, it would lead to the increase of substitute product prices, and the influx of cheaper import products.

According to agricultural economist György Raskó, similar to previous interventions, the introduction of the measure would be a political decision. There is a concern that this might not bea well-thought-out solution, the expert added. Mr. Raskó pointed out that the main reason for the price increase is the weakness of the Forint, which affects the prices of imported goods.

Mr. Raskó believes that the solution should focus on maintaining the stability of the Forint. Despite this, it is possible that retail chains might not want to risk additional special taxes and will give in to the pressure. For example, Tesco significantly reduced the prices of several dairy products and eggs mid-February.

On the potential consequences of the reintroduction of price caps, the economist said that discount retail chains would gain an even better market position, while independent Hungarian retail chains would be at an even greater disadvantage than before, with an even higher market concentration in the hands of discount retail chains. The market position of independent stores that do not belong to store chains will further weaken.

Tamás Éder, president of the Responsible Food Manufacturers Alliance (FÉSZ) also thinks that there is a high chance that the government will use regulatory measures, Agrárszektor.hu writes. However, the expert also believes that the overall results of the previous price cap were unfavorable, despite being a net positive measure for the societal stratum whomst the measure targeted.

The portal adds that the measure had negative effects overall. The Hungarian National Bank’s (MNB) experts calculated that the price cap increased inflation. The lost retail margin on capped products was shifted to other products, causing higher inflation than the reduction achieved on the capped products, according to Mr. Éder.

Hungary: Rising cereal prices go against the global trend

Agrárágazat.hu reported this week on the global and regional trends of cereal price changes. While grain prices are falling at stock markets in the USA and Europe due to the American trade war and tariffs, in the Black Sea region and in Hungary as well, cereal prices are increasing. However, news about the upcoming wheat harvest in the USA, but also in the Black Sea region is also influencing trade, primarily leading to a decrease in wheat prices (€224-226).

According to recent figures by the Research Institute of Agricultural Economics (AKI), in Hungary, the producer price of milling wheat, excluding VAT and transport costs, was €234/ton (+34% increase compared to 2023). The price of feed wheat was €223/ton (+40% increase), and the price of feed corn was €215/ton (+38% increase), in the second week of February. The producer price of industrial sunflower seeds (including high oleic sunflower seeds) was €567/ton (+46% increase).

Soy on the rise, with caveats

Agrárszektor.hu interviewed industry stakeholders on the prospects of soy cultivation in Hungary with regards to recent changes in the market and the climate.

Petra Mózes, product manager at RAGT, noted that soybean cultivation in Hungary has significantly increased in recent years, reaching a new record, almost 1120 thousand hectares in 2024. This growth is driven by factors such as the rise of plant-based diets, advancements in processing technologies, and global trade. Soy contributes to sustainable farming by improving soil quality and reducing erosion.

The expected planting area for this year is influenced by factors like the incentive support system, last year's heatwave and drought, and germination issues. While interest in soy remains high, the increased demand for seeds may be challenging to meet. Successful cultivation requires attention to the plant's specific needs, such as optimal pH, nutrient balance, and temperature. Despite soy's drought tolerance, adequate rainfall during the flowering period and pod formation is crucial for maximum yield. The performance of soy this year will depend on the weather, growing conditions, and market trends, but with favorable weather and proper agronomic practices, good results are expected.

Zoltán Nagy, product development director at Gabonakutató Nonprofit Zrt., discussed the impact of last year's drought on soy production in Hungary, noting that while some regions faced disappointing results, others saw success. Despite the negative effects of summer heat stress on seed production, the soybean planting area is expected to remain stable, which is an improvement compared to previous years. There is a strong demand for non-GMO, locally produced feed components due to the high import volume of soy. The crops also improve soil nutrient levels and fit well into sustainable farming systems.

Zoltán Bene, CEO of Karintia Kft., stated that soy ranked first in profitability among major spring crops in 2022 and 2023, and performed exceptionally well in 2024, despite sunflowers surpassing it last year. This demonstrates soy's heat tolerance and marketability, making it a promising choice for this year. Mr. Bene emphasized the importance of soy's cost-effectiveness, predicting that farmers will focus on cost effectiveness in 2025 due to uncertainty. Shorter growing season varieties are seen as the key to the future in Hungary, reducing weather-related risks.

Although the planting area of soy increased significantly last year, a slight correction is expected, but the outlook remains optimistic. The summer heat stress has impacted both crop and seed quality, so timely seed orders are crucial.

New pesticide approved for drone spraying

Agrárágazat.hu reported this week that a new insecticide was approved for drone spraying on corn, which is the second pesticide to be approved for this method.

The Coragen® 20 SC insecticide has been approved for field use on corn (seed, grain, silage corn), sweet corn, and popcorn crops. With its application, growers can protect against the corn borer and the cotton bollworm. The National Food Chain Safety Office (NÉBIH) however highlighted the importance of complying with all safety regulations. The portal highlights that farmers often disregard these regulations.