There were notable changes in the dairy industry from 2012 onwards that seriously affected the Hungarian dairy market. The main events were the introduction of the Milk Package in 2012, the beginning of the Russian import ban in 2014 and the abolition of the milk quota system in 2015. These events affected the development of the domestic dairy industry, and at the same time, the Hungarian dairy sector faces long term challenges. The aim of our research is to analyse the dairy price developments between 2003 and 2017. We compare the Hungarian producer and consumer prices over time and we analyse the relationship between the domestic prices and some of the international prices as well. We calculated the coefficient of variation, price ratios and correlation for different time periods. The results indicate that there has been a strong market integration between the domestic and the international market since 2003.
Hungarian Dairy Journal. 2018. 75 (2) 23-35.