MBH Bank: Hungarian agricultural sector’s expectations for the end of the second quarter have improved slightly

By: STA Date: 2025. 08. 06. 10:30

Hungarian agricultural sector’s expectations for the end of the second quarter have improved slightly compared to the first three months of this year, but at the same time, the sector is more cautious due to animal health epidemics and weather extremes – the managing director of MBH Bank’s agricultural and food business unit explained at the financial institution’s press conference in Budapest on Wednesday.

Dávid Hollósi said based on the business unit’s quarterly analysis: the effects of the foot-and-mouth disease epidemic, other animal health problems, and weather extremes were decisive in the period ending in June, which, together with the factors determining the market environment, continue to make the sector’s players cautious. The value of the MBH AgrárTrend Index, the agri-food industry confidence indicator based on the situation assessment of the bank’s clients, interprofessional organizations and the bank’s analysts, was 32.7 points on a 48-point scale at the end of June 2025, thus slightly approaching the 35 points considered the equilibrium level, and increased by 0.3 points in a quarterly comparison. However, in an annual comparison, a 1.2-point decrease can be observed in the index, he indicated.

The expert mentioned among the favorable developments that wheat has become a crop of outstanding quality, barley is profitable, and chicken and egg production is continuously expanding

However, due to the extremely hot and dry June, serious crop losses are expected for corn and sunflower. Spring frosts caused significant damage in fruit production. Dávid Hollósi highlighted that the long-awaited investment projects of the Common Agricultural Policy may be launched in the second half of the year, which may also help improve efficiency, laying the foundation for the long-term development of agriculture.

According to the managing director, this year’s performance in agriculture is expected to reach the average level of the previous year

Csaba Héjja, strategic analyst of the agricultural and food industry business unit of MBH Bank, said at the press conference, among other things: a 5-10 percent lower yield of corn and sunflower can be expected, and an even greater loss in the southeastern part of the country due to the drought in June. Due to the more favorable weather in July, even better results are expected from sunflower in particular. The food industry and feed production use approximately 5 million tons of corn per year, according to current estimates, it is not certain that the domestic crop will reach this amount, the supply may be scarce – he explained.

MTI

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