Prospects of competitiveness and strategy dilemmas in Hungarian agriculture

Udovecz, Gábor – Popp, József – Potori, Norbert

Keywords: competitiveness, production course, future prospects, strategy

In an earlier study (Adaption constraints in Hungarian agriculture: AKI; 7, 2007) the authors concluded that Hungarian agriculture drifted with relatively large fluctuations along a constrained path and up to 2013 may only increase its output by 6% and even that in a distorted structure. In this constrained space income from agriculture in terms of real values would stay at the 2006 level and include excessive inequities of branches. We have pointed out, however, that this unfavourable prognosis is not inevitable, but can be modified. Based on our given conditions there is a more dynamic developmental path leading to an increase of 25% in production volume and 50% rise in entrepreneurs’ income in terms of real values.
A year later agricultural workers (intellectuals, farmers, processors) believe, and statistical data bear it out, that Hungarian agriculture is still floundering on a course characterised by structural stresses and feeble competitiveness. The exploitation of our natural and human resources lag behind of what is possible. Certainly in terms of international (and mainly European) competition the self-regulating mechanisms of spontaneous developments and intervention distorted markets do not produce the results acceptable to us. In a power field determined by the security of food and energy supply and environment protection a new, resolute and co-ordinated adaptation strategy is required! The “command” of adaptation, the intellectual challenge is not merely of an agricultural interest or an agricultural task! Competitive agriculture in these days cannot exist without competitive processing, markets, training-research, innovation and a system of institutions.

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