BUSINESS

Hungary's biggest dairy producer eyes big profits in China's milk market

2017-04-30 09:52 GMT+8
Editor Wang Xinxin
A potential market of 1.3 billion customers is a serious incentive for every potential exporter, including the Alfoldi Tej, one of Hungary’s biggest dairy producers. The company is close to signing an export contract with their Chinese partners that will help deliver up to 3,000 tons of quality products to China.
Alfoldi Tej, based in the central Hungarian town of Szekesfehervar, is one of the leaders in the dairy field in Hungary. It was founded 14 years ago by local farmers and quickly grew to a group of 130 members who decided to buy a local dairy producer on the verge of bankruptcy. 
Today, The dairy producer makes a profit of tens of millions of dollars annually and is looking to increase its profits to almost 200 million by the end of 2018. The huge export contract with Chinese partners is one of the steps, which is expected by the end of May.
“In 2016, we started producing lactose-free products using the most modern technology. They have an excellent taste, and they are not yellow like the ones produced using old technologies. Given that over 60 percent of the population of China is lactose intolerant, we would like to introduce these products onto the Chinese market.” said Tibor Melykuti, executive director of Alfoldi Tej.
If and when the contract between the Alfoldi Tej and its Chinese partners is signed, the dairy products from hundreds of its farms will hit the shelves of demanding Chinese market. And as Alfoldi Tej, and farmers here are saying, they are prepared to do anything necessary to satisfy the tastes of Chinese customers. 
“The dairy market is under pressure in Europe. There is overproduction. For us, this contract means a new opportunity for sales, and I think that only the best, premium category of products should be delivered. We are a partner in this initiative, especially given that we have been producing GMO-free milk for years with excellent quality and in significant quantities.” said Andras Sudi, manager of dairy farm in Vilagospuszta, hoping for a positive outcome for a Chinese contract.
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