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Last year, the value of agricultural exports reached EUR 13.4B, indicating that Hungary sold EUR 3.5B more on foreign markets than it imported. Agriculture accounted for 38 percent of the total external trade surplus of the national economy.
The country’s agricultural sector extends beyond the production of raw materials, with processed products comprising 74 percent of exports last year, as stated by the Ministry of Agriculture.
The value of domestic agricultural exports surpassed the 2022 high by 1.3 percent, reaching EUR 174M. Agricultural imports, valued at EUR 9.9B, also increased by 1.3 percent, resulting in a surplus of EUR 122.8M compared to 2022. This led to a 1.5 percent increase in the trade surplus.
The slight rise in agricultural exports was attributed to rising prices, despite declining volumes.
In addition, the agricultural export volumes decreased by 0.8 percent year-on-year in 2023, while export prices rose by 2.1 percent. Agricultural import volumes decreased by 9.1 percent, offset by an 11.4 percent increase in prices over the same period.
The recent pace of export growth aligns with the EUR 15B target for 2030, set in the “Renewable countryside, renewable agriculture” program.
Export performance has also improved in recent years in terms of increased processing, another important agricultural trade objective. This improvement is primarily driven by an increase in exports of highly processed products, as noted by the ministry.
In terms of domestic value added, employment, and income, processed products accounted for 74 percent of exports in 2023, compared to 62 percent in 2010. The significance of noting that exports of secondary processed products increased every year between 2010 and 2023, is highlighted, with their share rising from 31 to 42 percent in 13 years.
Additionally, 33 percent of exports were primary processed products, while 26 percent were raw materials.
Germany emerged as Hungary’s largest export market in 2023, with EUR 1.8B, followed by Italy (EUR 1.7B), Romania (EUR 1.65B), Austria (EUR 1.1B), and Poland (EUR 750M). These five countries collectively accounted for 53.9 percent of agricultural exports, as detailed by the ministry.
Via MTI; Feature Image: Pixabay