The effect of the crisis on Hungarian foreign trade in foodstuffs, in an international comparison

Wagner, Hartmut

Keywords: crisis, price cycle, price explosion, foodstuffs, foreign trade

Hungarian foreign trade in foodstuffs has benefited from price cycle, more specifically, price explosion. The relevant balance improved significantly between the two dates; export of wheat and oil plants grew by leaps in 2007-2008 as a result of the increasing market prices. Hungary was among the losers in terms of the other sectors, however, especially with respect to the meat market (except poultry), as well as due to the loss of international competitiveness in the dairy market and in the growing of fruits and vegetables.
Comparing Hungary’s foreign trade in foodstuffs to its main competitors’ yields a mixed picture. The Netherlands, for example, improved its balance significantly not due to increasing raw material prices, and could also control costly imports. Germany, a country which is a net importer of foodstuffs, was an increasing threat to Hungary’s foreign trade position. Exporters in the countries reviewed were better able to utilise the price margins caused by the crises because they were able to use their aggressive price policies to increase their market share despite the increasing competition in terms of prices.
Comparison with Poland gives a different result, as Polish foreign trade in foodstuffs, which had been growing since the country’s accession, suffered more due to the crisis. Hungarian foreign trade in foodstuffs was better able to retain its position when compared to Poland, which does not mean that we conquered our competitor, as it still remains a strong contestant in various target markets and numerous products.

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