From July 1, another wave of price increases may come to the shops

In recent years, in order to remedy the environmental protection problems related to the packaging of products, such as food, and to increase the efficiency of recycling, based on the guidance of an EU directive, the so-called extended producer responsibility system (EPR) has been introduced in all member states, including Hungary. The already domestic peculiarity is that from July 1, not the non-profit management organization established by the state or market players, but the concession company operated by MOHU Mol Zrt. will perform the necessary collection and utilization tasks on behalf of the manufacturers.

Food producers have continuously indicated to the legislators their concerns related to the concession plans,

because it would have been considered more efficient and cheaper to operate the execution of the tasks on a market basis in accordance with international practice.

FÉSZ believed that their fears seem to be justified, as it will be a big blow for manufacturers that from July 1, the amount of the environmental protection product fee paid for this purpose until now

they have to pay 3-5 times, in some cases even 10 times, for the individual packaging materials.

This increased item is called the extended manufacturer’s liability fee.

The professional organizations representing the manufacturers were not involved in the creation of the fee rates either, so it is not clear to the cost bearers on what basis their rates were determined. Because of all this, the cost increase for manufacturers is twofold; not only do they have to pay higher fees for the packaging of the packaged food that goes to the store, but higher costs are imposed on all elements of the packaging along the entire production and supply chain.

Manufacturers will be forced to implement this cost increase in the transfer price of food, which the

due to their own increased burden, retailers may also be forced to pass it on to consumers.

This means that food prices are expected to increase further due to the high fees to be introduced from July 1.

Therefore, the Association of Responsible Food Manufacturers is convinced that in order to prevent further increases in food prices and to ensure the survival and competitiveness of Hungarian food industry enterprises, an audited review and significant reduction of fees is necessary.

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