Magazine: Optimistic start of the year in agriculture

The majority of farmers would be satisfied this year if agriculture’s output – at least in crop yield – would reach the same level as two years ago. So far the weather has been kind to farmers. In comparison with 2014, agricultural production fell about 10 percent in 2015.

Last year was rather calm, only the drought caused problems, due to which HUF 100-130 billion was lost in revenues in crop farming. 13.5 million tons, almost 3 million tons less cereal grains were harvested than in 2014. Prices didn’t compensate for the lower yield because they basically stayed the same as last year, growing by only HUF 1,000-2,000 a ton.

Nothing much happened in livestock framing, the size of the pig, cattle and poultry stocks increased and animal feed prices developed favourably last year. At the same time chicken, pig, sheep and milk was purchased from farmers at lower prices, generating a smaller income for them. It was a great achievement that despite the EU lifting milk quotas, the dairy sector managed to complete the year without a major setback. However, milk’s purchasing price froze below HUF 80 per litre, due to the influx of cheap products from Western Europe.

All in all, the sector’s output increased further in 2015 and reached HUF 2,457 billion. From this animal farming’s share was HUF 856 billion, up 3.6 percent from 2014. The value of Hungary’s agri-food foreign trade is expected to approach the EUR 8-billion level again.

There is no lack of capital in agriculture: HUF 360 billion worth of loans have been placed. In the food sector HUF 352 billion has been granted in loans. The sector started the year with greater optimism than usual, as the Agricultural and Rural Development Agency (MVH) already paid HUF 240 billion in direct subsidies to farmers at the end of January.