Magazine: New markets, new opportunities

According to an evaluation by the Ministry of Agriculture, between 2010 and 2014 agriculture’s output increased by 30 percent. The processing industry also made progress and agriculture’s weight grew in Hungary’s export. Secretary of state György Czerván recently announced at a conference that in the last three years our agricultural export had been EUR 8 billion, but this year this value may grow to EUR 10 billion. Agriculture’s performance last year is estimated to have been around HUF 2,410 billion. If crop yield will be as high as last year or exceed that level, plus prices increase too, the agricultural sector’s output may rise to HUF 2,500 billion in 2015. The food industry’s output may also keep growing for the fifth consecutive year. More subsidies will be available this year – in the case of cattle by 43 percent, for fruits by 89 percent and protein crop growing will be supported with HUF 8.4 billion. Last year’s cereal crop yield was superb: 9.2 million tons of corn was harvested – 34.7 percent more than in 2013, while wheat yield was up 3.5 percent at 5.2 million tons. Obviously this led to lower cereal crop prices, at the moment corn costs around HUF 40,000/ton and for milling quality wheat HUF 50,000/ton has to be paid. Russia’s ban on the import of farm produce from the European Union was very bad for Hungary’s agri-food export, but Hungary still considers Russia to be one of its main markets. It is a very important step forward that as of this year Hungary can export beef to China, while a similar agreement is in the pipeline as regards pork and poultry. For instance Hungary Meat Kft. of Kiskunfélegyháza has already been exporting to Japan, South Korea and Taiwan and recently Chinese inspectors have visited the company’s premises. Pick and Hungerit are also ready to start their Eastern conquest. According to data from the Central Statistical Office (KSH), last December the volume of retail grew 5.6 percent from the level of December 2013. In 2014 volume sales augmented by 5.2 percent in retail, with FMCG sales expanding by 3 percent. Market analysts expect a similar performance in 2015. Thanks to co-financing through European Union programmes, between 2014 and 2020 Hungary’s food industry is entitled to funding from a HUF 500-billion budget. At the moment Hungary can produce 20 percent more than the nation consumes, but the current production level can be increased to 150 percent in a relatively short time.