Efficiency, AI and sustainability: MBH Bank and MEGOSZ work together for the development of the agricultural machinery market

By: STA Date: 2024. 01. 24. 10:30

MBH Bank and the National Association of Field Machine Manufacturers (MEGOSZ) signed a cooperation agreement at the AGROmashEXPO and AgrárgépShow event. The main goal of the partnership is for the most important financier of Hungarian agriculture and the professional association of domestic machine manufacturers to jointly promote that as many Hungarian-made machines as possible contribute to the development of the sector and increase its competitiveness.

The collaboration will allow for a more efficient use of the existing resources in the sector and can promote better adaptation of the agricultural economy in the field of agricultural technology, artificial intelligence (AI) and sustainable farming. As part of the agreement, the credit institution supports the further development of the domestic agricultural machinery market by developing favorable and flexible banking products and services. The cooperation also extends to knowledge sharing, vocational training, and the efficient implementation of investments. “Hungarian agricultural machinery manufacturing is extremely stable: its production value is higher than the production value of the machinery market over a ten-year period, and our agricultural machinery industry is also a significant exporter,” pointed out Tamás Csanádi, president of MEGOSZ, adding that international companies operating in Hungary also carry out developments here, which further increases the importance of the segment in the agricultural economy and the national industry as a whole. “At the same time, agricultural machinery production faces challenges: in response to changes in the environment and climate in recent years, the technology for growing traditional grain, oil and fiber crops must be developed. But also the technical solutions necessary for the cultivation of other crops and the expansion of animal husbandry. The latter primarily according to the needs of the manufacturing industry.”

Domestic agricultural and forestry machinery production has a market share of 1.5-2 percent in the European Union

This is roughly the same as the share of the Hungarian agricultural and food industry, said Dávid Hollósi, managing director of MBH Bank’s Agricultural and Food Business. “We compete with countries like Denmark, Sweden and Finland. The long-term goal is for domestic production to be integrated into the European value chain at a higher level in this area as well,” he added. “With the opening of Rural Development Tenders, a significant amount of funds will soon arrive in the sector, and in addition to discounted loans, products with market interest rates may become more and more attractive again. It is important that the use of these resources supports the development of domestic machine manufacturing.”

MEGOSZ and MBH Bank emphasized that in order to permanently improve the situation and resilience of agriculture, sustainable management and efficient production methods are needed

Developments and investments can be the answer to these challenges. Agricultural machinery manufacturing is key to sustainability, artificial intelligence and robotics. In connection with the latter, for example, in remedying the labor shortage affecting the sector and in more efficient use of the workforce. With regard to related financing, both parties expect that the role of modern banking products and services will increase, but new forms of joint machine use – joint purchases, leasing and mixed constructions, machine circuits – will also be strengthened. The changes must be carried out in a short time, but with sufficient cooperation, self-reliance, various subsidies and bank financing can create an opportunity for this. If Hungarian agricultural machinery production meets the challenges, it can remain on the path of development, which is guaranteed by competitive, in many cases, world-class products in the field of grain technology, they pointed out.

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