Structural characteristics of the Hungarian Agriculture and Food Industry

1990-2004

Rome

29 June – July 2005

Éva Laczka

Joint UNECE /EUROSTAT/FAO/OECD

Meeting on Food and Agricultural Statistics in Europe

Structure of my presentation

• Introduction • Food consumption in Hungary• Hungarian Agriculture• Hungarian „Farms”• Hungarian Food Industry• Agriculture and Food Industry in the GDP• Agriculture and Food Industry in Employment• Agriculture and Food Industry in External Trade• Conclusion

Population volumes and Agriculture (per cent)

1990-2004(Index: average of years 1999-2001=100,0)

YearWorld Europe Hungary

population agriculture population agriculture population agriculture

1990 86,7 80,6 68,5 82,0 103,5 123,4

1991 88,1 81,0 68,7 81,9 103,2 129,0

1992 89,5 83,1 99,6 106,4 102,9 99,0

1993 90,8 83,6 99,7 103,9 102,6 89,8

1994 92,1 85,7 99,8 97,6 102,3 92,1

1995 93,5 87,6 99,9 97,7 102,0 91,4

1996 94,8 91,4 100,0 100,8 101,7 98,0

1997 96,1 93,5 100,0 100,9 101,3 101,6

1998 97,4 95,1 100,0 98,6 100,9 101,5

1999 98,7 98,2 100,0 100,0 100,4 94,8

2000 100,0 100,2 100,0 100,1 100,0 93,5

2001 101,3 101,6 100,0 99,9 99,6 111,6

2002 102,5 103,0 99,9 101,4 99,1 97,4

2003 103,8 105,8 99,8 98,3 98,7 96,0

2004 109,0 103,8 110,2

Food consumption in Hungary (1990, 1994, 1998, 2002, 2003)

ProductsFood consumption per capita, kg/capita

1990 1994 1998 2002 2003

Meat, meat products, fish 73,1 69,0 63,7 75,4 72,0

Milk 169,7 140,0 149,6 143,1 138,3

Fats 38,6 38,1 36,2 39,0 39,1

Eggs 21,6 18,8 14,7 16,7 16,5

Flour, rice 110,3 91,3 84,1 87,8 88,1

Potatoes 61,0 58,2 67,4 65,3 64,5

Sugar, honey 38,6 36,2 42,1 32,9 33,2

Vegetables 83,3 85,8 94,3 111,7 113,7

Fruits 72,3 69,6 67,5 91,6 86,4

The Hungarian Agriculture

• Utilised agricultural area 60 per cent

• Utilised agricultural area per capita 0,6 hectare

• Dominance of cereal production

• Limited orchard and vineyard areas

• Decreasing animal husbandry

Agricultural enterprises

• 7 800

• Average agricultural area 503 hectare

• 71 per cent Crop farming• 11 per cent Livestock farming • 18 per cent Mixed farming

• Cattle and pig

Private holdings (1)

• 766 000

• Average agricultural area 3 hectare

• 37 per cent Crop farming

• 25 per cent Livestock farming

• 38 per cent Mixed farming

• Pigs, cattle, sheep, horses

Private holdings (2)

• 59 per cent for family consumption

• 12 per cent for market

• 29 per cent for family consumption and for market

Food processing in enterprises and holdings (2000, 2003)

Denomination

Share of

agricultural enterprises private holdings

engaged in food processing (per cent)

2000 2003 2000 2003

Meat processing 1,15 0,76 0,41 0,40

Milk processing 0,39 0,38 0,13 0,62

Fruit and vegetable processing 1,32 0,78 0,21 0,50

Wine bottling 1,01 1,27 0,04 0,03

The Hungarian Food Industry

DenominationNumber of food processing factories

1990 1994 1998 2002 2003

Meat processing and preservation 87 86 132 232 249

Poultry processing 34 29 42 74 79

Processing of fruits and vegetables

.. 74 102 176 180

Dairy processing 33 47 52 70 66

Production of milling products 48 .. .. 111 102

Production of bread and fresh pasta

127 118 430 948 963

Production of sugar 12 11 8 5 5

Breweries 10 9 11 38 34

Production of soft drinks 24 .. 31 83 96

Key characteristics of the Hungarian Food Industry

• Decreasing state ownership

• Decreasing investment

• Reduction of employment

• Recreasing productivity

Agriculture and Food Industry in the national economy

0

1

2

3

4

5

6

7

8

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

%

Share of Agriculture in GDPShare of manufacture of food product in GDP

Agriculture and Food Industry in Employment

02468

10121416

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

%

Share of employed persons in food industry

Share of employed persons in agriculture

External Trade of cereals and cereal products

0

500

1000

1500

2000

2500

3000

1996 2000 2004

Thousand tons

Import Export

External Trade of vegetables and fruit products

0

200

400

600

800

1000

1200

1996 2000 2004

Thousand tons

Import Export

External Trade of meat and meat products

0

50

100

150

200

250

300

1996 2000 2004

Thousand tons

Import Export

External Trade of dairy products

0

20

40

60

80

100

120

1996 2000 2004

Thousand tons

Import Export

Conclusion

• The change-over to the market economy hit the Agriculture and Food Industry

• The share of Agriculture and Food Industry in the GDP declined

• The share of Agriculture and Food Industry in Employment declined

• The transformation process continues

• Agriculture and Food Industry should find the place and role in the EU economy

Thank you for your attention