"A 27 percent VAT is a huge incentive to circumvent the system" – what would improve the Hungarian fruit and vegetable sector?
The vegetable and fruit production sector faces multiple challenges, including labor shortages, rising wages, and increasing production costs. Extreme weather and strong international competition further complicate the situation. Regulatory interventions, such as price caps and the Price Observer, distort normal market operations. While the Price Observer aims to help consumers compare prices, it has led retailers to pressure suppliers to match prices, disregarding varying supply costs. This often results in producers bearing the financial burden of these discrepancies. The negotiation process with retail chains involves complex cost considerations, including logistics and packaging expenses.