Excessive production

Hungary’s annual grain production is between 9-17 million tons. The domestic market absorbs less than 8 million, while the rest is exported or offered into intervention. Hungary is a net exporter of crops with a stable processing. Export figures vary: they were relatively low in 2004 due to EU accession and change in tax law. The first half figure for 2006 was 1.5 million tons. Shipping has started immediately after the harvest, with some obstacles in transportation logistics. The safety of the crop growing market has increased in the past 2 years. The increase in crop prices effected farmers and fodder producer as well. The main product of the mill industry is wheat used for white bread. Among noodle products Hungarians favor the ones containing egg. The Hungarian crop sector will continue producing for export in the future as well. Developing the sectors of animal breeding and bio-fuel production is included in the government plans, which will effect crop industry as well. Actors of the market are not counting on a significant change in consumer habits. Flour consumption is stagnating at an annual 80-82 kg per capita, while noodle consumption has experienced a slight increase in the past years.