Growth with limits

Péter Sebesta
president
Association of Hungarian
Deepfreezing and Canning
Industry

Future competitiveness is closely linked to how the proportion of domestic horticultural crops develops, the extent to which the industry is able to increase energy efficiency and how predictable the economic policy background will be in the coming years.

Raw material base

The structure of raw material supply has long been limited. Climate change is causing greater fluctuations in crop yields.

“The biggest problem with our raw materials market is that it is limited, both in terms of choice and volume. From our 5-6 million hectares of arable land no more than 100,000 hectares are used for horticultural crops”,

says Péter Sebesta, president of the Association of Hungarian Deepfreezing and Canning Industry.

Cost and market environment

For years the engine of development has been CAP funds and domestic investment incentive programmes, supplemented by individual support schemes and Széchenyi programmes. Meanwhile, a slow restructuring of the market can be observed: the positions of stable, financially strong players are strengthening. On the cost side, energy prices and rising labour costs are the strongest pressures, which can only be addressed through technological modernisation.

Due to the scarcity of raw materials, developments have mainly focused on packaging technology

Product paths and competitive situation

Sweet corn remains the leading product in the sector, with green peas and pitted sour cherries representing the highest added value. However, product innovation opportunities are limited by the scarcity of raw materials, so developments are primarily seen in packaging technology. Meanwhile, consumer trends are becoming more health-conscious and the debate around processing is intensifying, while global trade agreements may weaken the positions of European producers.