Hungary: Apples and walnuts looking good, maize challenged by soya

Apple harvest bountiful this year

The news portal Agrárágazat.hu reports that Hungary’s apple harvest will total between 500 to 550 thousand tons, almost double the amount of the yield in 2022.

According to forecasts, the harvest of cultivars for human consumption will be 100-120 thousand tons, which will be sufficient to supply domestic consumers. The quantity of industrial cultivars is expected to be between approximately 400 and 430 thousand tons, which will cover about 80-90% of the domestic processing capacity.

While Hungary’s apple growing area has been shrinking for years, yields have increased. In 2006, the total amount of farmland covered in apple orchards was 45 thousand hectares, however, by 2023, the size has fallen under half that number.

Walnut harvest also looks promising

The National Chamber of Agriculture (NAK) and the Fruit and Vegetable Growers Union (FruitVeB) have reported that both the quantity as well as the quality of the walnut harvest has improved compared to last year. The organizations warn however that the state of the market is not favorable for walnut growers.

Out of the total walnut growing area in Hungary (9408 ha), half is located in Szabolcs-Szatmár-Bereg County, in East Hungary (4489 ha). Due to summer rains, bacterial diseases were prevalent in the orchards in the county, however, with plant protection methods, these proved to be manageable. However, third-country produce is constantly driving down prices, which means that domestic production would have to surpass 4 tons per hectare to remain profitable. The news portal AgroTrend.hu reports that particularly the produce imported from Australia and Chile are proving to be tough competitors for Hungarian walnut on the market.

Many maize farmers consider switching to soya

The news portal Agrárszektor.hu recently published an interview with the head of an agriculturalcompany in Hungary who told the news portal that due to uncertainties in the market and the environment, many sunflower and maize growing farmers are considering switching to other crops. Mr. Zoltán Bene has highlighted that there is a marked increase in interest for soya cultivation. There are multiple reasons for this. One is lower input costs. Another is the ease and speed of their sales. Soya also brings in subsidies which can cover as much as a quarter of the production costs. Furthermore, soya has lower logistical costs – These costs for maize, due to its sheer volume, are 2 to 3 times higher. Due to these factors, soya can break even with harvest yields of 1.5-1.8 tons per hectare. Moreover, the subsidies for protein crops will be increased by 22% this year, reports Agrárszektor.hu, making soya a valid alternative for maize.

Dairy industry faces hardships

The National Chamber of Agriculture (NAK) recently issued a press release on the difficulties that the dairy industry in Hungary is currently facing. According to NAK, while the purchase price of milk continues to decline, high inflation is causing a decrease in demand for dairy products. Additionally, imports have gained new momentum, with significant quantities of semi-hard cheese and UHT milk arriving in the country over the past eight months.

In August, the purchase price of raw milk continued its months-long decline, as it was 32% lower than in the beginning of the year and decreasing by 17% y-o-y, to €0.39/kg. Raw milk prices have also been decreasing in the rest of the EU. However, in other EU countries, declining raw milk prices also led to lower consumer product prices, increasing competitiveness.

In the first half of 2023, imports of semi-hard cheese increased by 4 thousand tons (11.3% increase). The import of shelf stable milk increased by 48.8%. Consequently, producer prices in the domestic industry have also been declining. The transfer prices of Trappist cheese decreased by 36%, for butter they decreased by 34%, for cottage cheese prices the decrease was 16%, the transfer price of 1.5% fat content UHT milk decreased by 29% and for 2.8% fat content UHT milk, which was previously under government regulation, the decrease was 26%.

Food industry – Both imports and exports declined in the summer

TradeMagazin.hu reported on the latest statistical figures of the economy and trade recently published by the Central Statistical Office (KSH).

Between June and July, the exports of food, beverages, and tobacco decreased by 2.9% in volume, while imports decreased by 11%. The decrease in volume in exports was influenced by the turnover of vegetables and fruits, while in imports, it was influenced by cereals and cereal products. The reduction realized by the commodity group moderated the overall export volume change by 0.2 percentage points, while it increased the pace of import decrease by 0.5 percentage points.

Generally, in July, the volume of exports increased by 3.2%, while imports decreased by 5.4% in the national economy y-o-y. The surplus was €559 million, and trade balance was  €1.9 billion higher that in the same period last year.

Premium variety of Hungarian pork sees slight increase in demand

Agrárszektor.hu reports that pork from the Hungarian pig breed mangalica is increasing in popularity after years of low demand. According to the news portal, although not long ago the breed was “on the brink of extinction,” currently 300 tons of mangalica pork is sold on the domestic market. Mangalica still only accounts for 2% of the country’s pig livestock.

Two-thirds of the sales comes from export, where it is sold at marketplaces and festivals. The article highlights that the growth of mangalica breeding will also depend on the utilization of subsidies. In the 2023-2027 cycle of the Common Agricultural Policy, there are plans for subsidies worth €3.9 billion for investments and €936 million for livestock farm facilities.

Proposed act on banning energy drinks for minors

The news portal Agrofórum.hu reports that two Fidesz-KDNP MPs, István Hollik and Lőrinc Nacsa are proposing an act for the banning of the consumption of energy drinks for individuals under the age of 18.

The news portal reports that according to experts, energy drinks may have some beneficial effects on physical performance, but they pose specific health risks for children and adolescents. They can have serious effects on the cardiovascular system, including heart rate fluctuations and increased blood pressure following consumption.

The news portal also reports that other experts believe that although two-thirds of energy drinks are consumed by the age group 13-15, these beverages do not pose a serious health risks. Dr. Gábor Zacher, one of the best-known toxicologists in the country, recently said that “a can of energy drink is not different in terms of caffeine intake from a cup of good quality coffee.”