Lasting economic power

By: Trademagazin editor Date: 2017. 12. 01. 19:23

According to Péter Sebesta, president of the Association of Hungarian Deep-freezing and Canning Industry (MHKSZ), with its HUF 160-170 billion output the sector contributes about 10 percent of the Hungarian food industry, while its share in food export is 20 percent. Mainly sweet corn, peas and sour cherry are used in production. The sector had suffered after the country’s political transformation in 1990 and the volume of production dropped further, by 10-20 percent during the years of economic recession. However, there were positive changes in the last 3-4 years: production was growing slowly but steadily and investment projects were realised in the deep-freezing and canning industry. Mr Sebesta expects that the popularity of naturally healthy processed fruits and vegetables will increase, which are free from additives and are rich in vitamins and fibre.

At a European level Hungary has strong positions in processing sweet corn and manufacturing canned sour cherries in a glass jar. The president added that in the long run companies need to expand their product portfolios and increase the volume of production. MHKSZ will recommend the reduction of VAT on products to 5 percent

In the current budgetary period considerable funding is available to food industry companies. Money from these grant programmes is likely to generate important positive changes in the sector if companies use it well. In the export markets it needs to be monitored how international agreements develop, for instance to be aware of protectionist measures. A good example of this is the free trade negotiations with the USA, as the USA is the biggest manufacturer of Hungary’s top canned food product, sweet corn. //

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