Brief period of happiness after three difficult years

2008 has been a good year for agriculture as production has grown by 20 percent, following three years of decline. At the same time, the domestic market has shrunk, with sales dropping by 1.4 percent in the first eight months, compared to 2007. Quarterly reports are prepared regularly by Agrár-Európa Kft and KOPINT-TÁRKI Zrt about domestic and international agriculture. Their latest findings were published at a press conference held on 28. October. Global recession has had a negative effect on export demand. The financial crisis has an adverse effect on demand, which in turn reduces prices. Differences between sectors and regions within agriculture are growing, with selection intensifying in the market. A drop in production of 5-10 percent is expected in 2009, assuming normal weather conditions. Import has been growing at a faster rate than export in recent years (with the exception of 2007). The products showing the most dynamic growth in terms of export are materials like wheat or maize and minimally processed products like sunflower oil, whereas the most dynamic growth in import is seen among highly processed products which represent high added value. Imports of processed food products have approached or even surpassed the exports of such products. Though exports were up in terms of value in the first seven months of 2008, they dropped in terms of quantity. The growth in revenues of EUR 463 million was mainly due to a 40-80 percent rise in the prices of wheat, rape, sunflower seed and oil. At the same time, the export of maize was down by 57 percent in terms of quantity. It was pointed out by researchers that Hungarian export is excessively focused on the EU and especially the central European region, mainly as a result of a shortage of products with high added value.