Assessment of the situation in the agricultural and food sector

In the 2000s the decline in the GDP share of agriculture continued and the share of the food industry was also very low. Especially the result of the latter is not a natural process, but it can be explained by the weak position of the domestic food industry. The composition of farmers is unfavorable in many respects: more than 40% of agricultural land is cultivated by farmers without professional qualifications. Appropriate development of the technical background, the appropriate amount of fertilizer or pesticide use or, as an alternative to the latter, the spread of integrated plant protection are hampered by the lack of funding in the sector. Both the irrigation systems and the logistics network are extremely underdeveloped and, on the one hand, they are more vulnerable to weather fluctuations than justified, and on the other, they make it difficult to reach export markets.
Commissioned by: Hungarian National Bank.
Prepared by: Ágnes Nagy, Éva Palócz, Márton Szabó.

Budapest, October, 2012.