Hungarian agriculture in the light of EU accession

Magda, Sándor

The objective of the present paper, intended to introduce a discussion, is to highlight the milestones and provide the examination of scientific requirements enabling the agricultural sector of Hungary to take advantage of the opportunities deriving from the entry of the country into the European Union, based on the objective situation, and taking the short period of time available until the accession into consideration.

The lack of different institutions related to integration and cooperation makes the situation of Hungarian farmers harder. This is why it is reasonable to support every cooperation or organisation capable of rapidly and effectively integrating and coordinating the organisations of small, medium-sized and large-scale farms. This would decrease the disadvantages caused by the smaller size of farms, increase efficiency for which the demand may even grow on the single market of the EU, and ease the process of financing and marketing. Obviously only farms capable of living up to these expectations, monitoring the product channel and the market, and having professional knowledge and skills will be supported.

The agriculture of Hungary has difficulties not only in terms of its organisational system. Due to the lack of technological development for over a decade and a half, along with decreasing capital investment and profitability, Hungary will be at a disadvantage after her EU accession. The improvement of the existing technologies and the introduction of new ones are imperative in order to improve the country’s chances in competition and ensure safe, variable and cheap domestic food production. The financial support of the society is necessary for the above purpose also in respect of the advance payment of financial resources. The form of integration could be considered a way of solution, because the supply and the operation of farmers’ groups is more efficient.

Experience acquired in recent years has shown that financial and marketing difficulties have equally affected the small, medium-sized, and large-scale farms. This is why it is necessary to improve the conditions of self- financing and marketing positions in a fast pace. The different integration forms mentioned above may significantly improve the financing, marketing position and bargaining power of producers.

Based on the domestic experience acquired so far, it can be stated that the competitiveness of agriculture can be expressed in a simplified way by the addition “integration + knowledge + efficiency”. The dissemination of knowledge among farmers, their rapid preparation for EU-accession, the setting up of integration, the spreading of technologies, and the solution of financial and marketing problems can only be provided in the form of extension service during the short period of time until Hungary’s EU accession. This is why it is so important to introduce, after all, centres and networks of extension service on the basis of experimental stations.

Every society requires a realistic view of their social situation and security, and a clear forecast of the future. The arguments listed above do not only reflect the objective situation but provide also the solution leading to secure living. With respect to the agro-ecological conditions of Hungary there are agricultural sectors having a good chance of being competitive in the EU even if they have to meet higher standards. The paper highlights these sectors.

Information published in the present paper, as well as the discussion provoked by the arguments listed in it, may contribute to designing the proper strategy of Hungarian agriculture in the light of the country’s EU-accession.

When looking for an answer to the question of how to outline the future of Hungarian agriculture, it is reasonable firstly to analyse the historical background, the important lesson drawn from it, and the current situation. Based on objective reality we can come to an agreement in evaluation of the chances and opportunities that are still ahead of this country.

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