Development prospects for the domestic fruit and vegetable sector

Erdész, Ferencné

Keywords: production, competitiveness, organisation, prospects, development tasks

The Hungarian fruit and vegetable sector’s preparation for EU accession was not particularly successful and the experiences and results to date of our EU membership have been uneven. There have so far been more negative consequences of accession, which threaten the sector’s future, than positive returns. As a result of earlier weaknesses – disorganisation, archaic technical standards, deficient logistical systems, a partitioned land ownership structure, and extremely differentiated production (farming) standards – market losses and structural tensions arose domestically. Collaboration and cooperation among farmers, and the organisation of their sales activities, began late and took off slowly. Producers’ weak position in market negotiations influenced both sales and income unfavourably. The Hungarian fruit and vegetable sector’s competitiveness presents a mixed picture: besides the strengths, numerous weaknesses can be found that endanger the chances of accessing the market. The structural transformation of the sector has not been completed and the current situation cannot be compared to that of West European countries with decades of market economy training.
Growing market competition, deficiencies in the balance of supply and demand, and adaptation to new market conditions require a whole series of changes. Development of the fruit and vegetable sector is justified because, in comparison to other countries in the Central European region, Hungary has good attributes. One of the strengths of each sector could be producing for the expanded internal market. Production of organic, speciality and “Hungaricum” produce offers an opportunity to meet the demands of niche markets. For the moment, however, competitive disadvantage prevails and we must reckon with imports of fresh produce increasing in the coming years. It is in the national, consumer and farming interest that both sectors embark on the desired development path by 2013. Much needs to be done, however, to achieve this: more innovation, development and effective cooperation is required. Development resources could be offered by the New Hungary Rural Development Programme grants.

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