K&H farmers have to expect higher purchase prices for the next production cycle

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They added that this could stabilize the income level of the agrarian farm at the pre-drought level. However, they also pointed out that if there is another drought in 2023, similar to this year’s, the agricultural sector is not prepared to deal with it.

Currently, there is a lack of resources in the sector, the demand for working capital financing has increased significantly

In addition, however, the banks have resources that can be deployed many times over, and from the second half of the next year, you can count on EU calls for tenders again. The announcement quoted István Tresó, head of the K&H Agricultural Development Department, who said that Hungarian agriculture is indeed good, but has untapped potential. Companies now need to take a hard look at their own management, markets, strengths and weaknesses. Knowing these, you have to build your new strategy and not postpone the necessary steps and investments. In this state of economic imbalance, which is called a crisis, the winning team of the next 8-10 years will be formed – emphasized the agricultural expert.

They also mentioned that the past year or a half has brought serious challenges for Hungarian agriculture

The energy price explosion that started in the middle of last year continued, which sometimes caused financial problems for farmers. The sales difficulties of animal husbandry – primarily pig fattening – also dragged on from 2021 to the first half of 2022. The arable plant growers had to deal with the drought after the beginning of the year, which in the spring still promised to be very encouraging. It is true that the long production cycle was helpful for the latter, since the production season started at moderate prices, and sales are already taking place at prices that have increased several times due to the loss of the two largest grain producers, which compensates for the loss of crops due to the drought. With the exception of two counties, where the drought completely destroyed the crop, the farmers earned an income above the average – read the announcement of K&H.

MTI