The Hungarian agricultural and food industry can expect a calmer year in 2024

The credit institute’s indicator, prepared by surveying agricultural market players, improved even more at the end of last year after the strengthening experienced in the first three quarters of 2023: currently, the sector is mainly driven by livestock breeding, which is more profitable than before, although the assessment of the situation of plant growers in difficult circumstances has also improved. Food inflation slowed to below 5 percent by the end of the year, which, according to experts, also reflects the fact that lower producer prices are now reflected in consumer prices in stores.

“The effects of the coronavirus pandemic, the disruptions in supply chains, the rise in the price of energy and input materials, and the Russian-Ukrainian war brought significant changes to the agricultural and food industry. In 2024, however, the environment may become calmer, costs have decreased, and production has become more predictable. We are facing a transitional year, this is a good time for planning. In 2024, the first tenders of the Rural Development Program will be opened, and those who can optimize their management, reduce their costs and run their business sustainably will be in a good position to use them. The goal is for farmers to move towards quality with efficient production”

– said Dávid Hollósi, the managing director of MBH Bank’s Agricultural and Food Business, according to whom demand for loans may pick up somewhat this year due to the decrease in interest rates.

“We expect that, in addition to working capital financing, we will also be able to meaningfully negotiate investment loans with our clients at the end of the year.”