Effects Of Covid Crisis On Hungarian Food Supply Chains

The aim of the study is to show what challenges the actors of the food supply chains faced with during 2020 in Hungary as a result of the COVID-19 pandemic and how they were able to deal with them. This research applies a qualitative methodology and semi-structured interviews were conducted with actors in the food supply chain to sum up the observations in a case study. The authors targeted raw material producers, processors, a retailer and a logistics service provider specialized in the food sector to understand what problems have arisen at supply chain level and how they can be addressed, and what impact they have had on the actors. The authors have also identified a special-origin bullwhip effect experienced by the different food supply chain members. The food industry plays a vital role in supplying the population and this has grown as a result of the epidemic. However, according to current assumption, some sub-sectors were not equally affected by the crisis: consumption shifted towards cheaper, basic foods, while demand for expensive and / or luxury products declined (e.g. chocolate). At the same time, the reorganization of final customers' consumption and the increasing household consumption could not offset the lost sales volume due to the closure of the Hotel, Restaurant and Catering (Horeca) sector. Overall, the Hungarian food industry has successfully overcome the effects of COVID-19, its political judgement has strengthened, and the importance of the country's ability to self-sufficiency with food has increased. In the upcoming period, domestic and European Union subsidies to support agricultural and food industry investments will also help funding this endeavour.