Hangya calls for cost reduction in agricultural production

ccording to Hangya Cooperative Association’s calculations, farmers could cut their production costs by 10 percent on average by acting together. Vilmos Patay, president of Hangya Holding told that farmers can’t represent their interests in the market because they have no national interest representing organisation. This is the reason why the volume of agricultural production reduced drastically in the last 23 years. Producers’ share from the profit generated in various product paths is low and the sector is less competitive than other countries’. Hangya sees the solution in cutting production costs, for instance by the collective purchasing of products and services used by farmers. They also urge cooperation in selling farmers’ products. Hangya-Coop Agricultural Holding Cooperative was established in April to realise these plans. Plans include supplying Coop stores with fruit and vegetable in cooperation with Producers’ Sales Organisations.