An analysis of the Hungarian dairy industry in the light of sustainability

Abstract

The two most important expressions in the title are „dairy industry” and „sustainability.” In a few words, sustainability is the capacity to endure. This concept has three dimensions: environmental, economic, and social. In ecology, this word describes how biological systems remain diverse and productive over time. „Economic sustainability” is the term used to identify strategies that make it possible to utilize available resources to the best advantage. In the case of business operation, economic sustainability calls for using resources so that the business continues to function over a number of years, while consistently returning a profit. „Social sustainability” encompasses human rights, labor rights, and corporate governance. The present study tries to analyze the dairy sector in the light of sustainability. The general objective of this paper is to answer the following question: How can the dairy industry achieve competitive growth while attempting to comply with the criteria of sustainability? To answer this question we should be aware of the present situation of the Hungarian dairy industry. This study will try to give a complex overview of domestic milk production, consumption and trade and to illustrate the above-mentioned three dimensions of sustainability in dairy sector with examples. The expected general result of this study can be summarized in one sentence: in many cases – as in the case of the dairy industry – sustainability can hardly be achieved while following the spirit of competitiveness. Keywords: Hungary, dairy industry, sustainability, competitiveness