Development of the foreign trade competitiveness of the Hungarian fruit and vegetable sector

Medina, Viktor

Keywords: vegetable, fruit, competitiveness, foreign trade, EU accession

It can be determined based on the results of the study that the fruit and vegetable sector is competitive; however, its competitiveness is decreasing each year. The decline in competitiveness did not cease with accession to the EU, rather it grew stronger. This is partly due to the sector’s lack of preparedness and partly the result of abundant production in 2004 and inclement weather in 2005. It is also a disadvantageous result that the decline in position can be felt most keenly in target markets.
Analysing product groups separately, it can be seen that competitiveness indicators are most advantageous in processed products, followed by fresh vegetables. We can no longer really speak of a competitive advantage in the case of fresh fruit. The main explanation for this is the significant increase in the import of tropical fruits.
It would be particularly desirable to reverse this negative tendency, not only because the sector is a significant source of export-income, but also because Hungary’s ecological characteristics are advantageous to fruit and vegetable production, exploitation of which could also play a vital role in the employment of the rural population. The sector’s competitiveness could be improved through better organisation, market research, analysis, the preparation of action plans, community marketing programmes, the creation of a quality commodity stock, logistics development and the modernisation of production technology.

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