The “Crisis Performance” of the Hungarian Food Economy

Mizik, Tamás

Keywords: agriculture, food industry, trade surplus, crisis, Q02, Q17

Crises affect the whole economy, but their impacts vary from sector to sector. The last two crises from Hungarian aspect (the global financial crisis in 2008 and the embargo against Russia in 2014) have resulted in a decline in international agri-food trade and an increase in agricultural prices. Hungary had an agri-food trade surplus even before the EU accession which increased significantly after the accession. The purpose of this article is to give an overview of the impacts of the past 3 crises on the Hungarian agri-food industry. According to the results, the type of products (raw material vs. processed product, perishable vs non-perishable goods, etc.) and the level of trade integration matter among other issues. To this end, the article provides an overview of the Hungarian agricultural production and agri-food trade performance. As Hungary is strongly integrated into the EU’s single market, therefore trading mainly happens with other member states, and its most important trade partner is Germany. At the product level, it can be seen that the share of raw materials is higher on the export side (cereals and oilseeds) compared to the import side (e.g., meat and meat products or various confectionery products). Based on the results, the impacts of the coronavirus were different from that of the two previous crises. The Hungarian exports are expanded despite transport difficulties, which resulted in a growing trade surplus. Besides, international food prices have remained stable. Overall, Hungary was able to take advantage of this crisis, as its overproduction resulted in an even higher food security and an increasing agri-food trade surplus.

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