Provides an introduction to the agricultural best prospect industry sectors in this country.
Last Published: 8/6/2019

Agricultural Sectors

In Hungary, arable land and permanent crops account for 4.33 million hectares (ha), of which about 130,000 ha are irrigated.  Pastures account for 0.8 million ha and forests for 1.94 million ha.  Major crops include wheat (1 million ha), corn (1 million ha) and oilseeds, sunflower and rapeseed (0.91 million ha).  The country has a long tradition in producing planting seeds and in horticultural products.  Animal production includes 2.9 million pigs and poultry flocks of 40 million birds.  The number of cattle of all types is approximately 885,000.
Hungary’s agriculture contributes about 3.6% to the GDP and 4.3% to the gross value added.  Food industry contribution to the domestic production stagnates at around 2%.  Agriculture accounts for 4.1% of total investments in the economy and for 4.8% of the national employment rate.  The food industry contributes 2.6% to investments and 3.2% to the total number of employees.
The gross output of agriculture shows an upward trend at current basic prices.  The share of plant products is 59%, that of live animals and animal products is 34% and agricultural services and secondary activities amount to 7% of the gross output.
The country's agricultural trade balance is positive.  Agricultural exports account for 8% of total exports from Hungary.  The share of agricultural imports has been stagnating at around 6% for years.
The foreign trade structure of agricultural and food products is relatively stable in Hungary.  Most of the exported commodities are grains and grain products (17%), meat and meat products (15%), vegetables and fruits (11%), animal feed (11%), beverages and tobacco (7%), oilseeds (6%), and vegetable oils (6%).  Imports mostly belong to the commodity groups of meat products (13%), vegetables and fruits (13%), grain and grain products (9%), beverages and tobacco (10%), coffee, tea, cocoa and spices (9%) and animal feed (8%).  More than 93% of agricultural imports comes from EU member states. Hungary’s most important trading partners are Germany (20.4%), Poland (12.8%), Slovakia (9.2%), Austria (7.5%), the Netherlands (6.9%), the Czech Republic (5.9%), and Italy y (5.6%).  Non-EU import partners include Ukraine, Serbia, the United States, Turkey, Indonesia, and China in the plant product dominated markets.
 

Planting Seeds

Overview
Hungary is a traditional agricultural exporter.  However, it imports high quality planting seed for propagation and production. U.S. exports of vegetable, grass, forage and, in particular, sunflower and corn seed have been traditionally strong in this market.  One limitation for new exporters is that the market is well established, and trade linkages are solid.  It is worth noting that the country is an active opponent of agricultural biotechnology in the European Union.  Since the European Union member states are legally allowed to restrict or prohibit the cultivation of genetically engineered (GE) crops, Hungary has adopted a law directly banning the growing of GE plants.

Sub-Sector Best Prospects
Best prospects are in corn, sweet corn, popcorn, sunflower, and forage seeds.

Web Resources
Hungarian Seed Association
 

Bovine Semen

Overview
Hungary’s cattle inventory has expanded in recent years, and its dairy industry has been stabilized by top-up payments, extra EU aids, and other government measures.  Dairy cows, particularly Holsteins, account for roughly 60 percent of the country’s bovine stock.  Therefore, demand for high quality bovine semen for dairy cows is strong.  The volume of U.S. exports to Hungary has shown a growing trend since 2016, and the United States became the country’s most important supplier.  Imported U.S. bovine genetics cover about 87% of total imports and amount for 43% of total demand.  Regarding the stabilized dairy market, and the increasing number of cattle inventories, there are real potentials for these products.  Still, the market is well established and trading linkages are solid.  It can be a limiting factor for new exporters.

Web Resources
Hungarian Animal Breeders Association
 

Dried Fruits and Nuts (incl. Peanuts)

Overview
Dried fruits and tree nuts from the United States are sought by Hungary’s well-developed confectionery and bakery industries, and for special but popular dietary trends such as the Paleo diet.  Despite challenging conditions, U.S. exports of tree nuts have remained flat in recent years.  Still, maintaining the current market position is difficult because suppliers from less expensive and developing countries have well set trade relations with Hungary.  In addition, a substantial percentage of U.S. imports are re-exported from Germany, Austria or other West European countries due to the need for small volumes but continuous deliveries.

Sub-Sector Best Prospects
Best prospects are in raisins and almonds, along with those mentioned above.
 

Sugar Confectionary and Snack Foods

Overview
As western consumption patterns are emerging especially among the younger consumers, exports of sugar confectionary and snack food offer lucrative opportunities.
 

Fish & Seafood

Overview
Although per capita fish consumption is still low in Hungary and direct channels for exports from the United States are still negligible, there are opportunities for food retailers to satisfy the increasing demand for healthy fish and seafood products. Most consumers would adjust their eating habits and diet for health reasons. Therefore, government programs support the increase of fish consumption. As of January 1, 2018, VAT rate on fish has been cut from 27% to 5%. The reduction is expected to contribute to higher per capita fish consumption in Hungary.

Sub-Sector Best Prospects
Best prospects are in hake, pollock, bar, cod, flatfish, breams and porgies and crabs.

 

Beef

Overview
Hungary’s beef imports increased over the past years. The market availability of high-quality beef is limited. Therefore, good market opportunities can be identified for U.S. high quality beef at full service, fine dining restaurants and steakhouses.

Sub-Sector Best Prospects
Best prospects are in high-quality beef.
 

Beer

Overview

Increasing beer consumption offers limited but improving export opportunities for U.S. products.  Especially, craft beer has good market potential despite the high number and good availability of substitute products.

Sub-Sector Best Prospects
Best prospects are in craft beer products.
 

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