Dávid Hollósi, managing director of MBH Bank’s agro-food business, predicts a positive shift in Hungarian agriculture. He anticipates a sustained upturn starting in 2024, with equilibrium likely by 2025.
Factors contributing to this optimistic outlook include a more predictable economic environment, declining input costs, and forthcoming rural development tenders. These developments enable increased lending for agricultural investment, breaking the stagnation in agricultural lending.
Consequently, Mr. Hollósi foresees a shift in arable crop production away from dependency on grain yields for exports.
He urges Hungarian grain producers to enhance efficiency and reduce reliance on subsidies for long-term viability.
Highlighting the importance of strengthening food companies for overall sector competitiveness, Dávid Mezei, MBH Bank’s head of agri-food business, underscores the pivotal role of food companies as primary buyers of agricultural products. He emphasizes the availability of substantial rural development funds for investments, complemented by an interest subsidy to support applicants.
Mr. Mezei anticipates new development tenders in 2025, amid potential changes in the EU’s agricultural funding system, urging farmers to capitalize on current support before potential post-2027 alterations.
Strategic analyst Csaba Héjja notes improved conditions across various agricultural sectors by the end of 2023, particularly in pork and cattle farming, with stable prices and incomes. However, challenges persist in vegetable and field crop production, such as high labor costs and profitability concerns.
Fruit growers face uncertainty attributed to market unpredictability and aging plantations, necessitating specific structural changes.
Mr. Héjja advises producers to focus on cost reduction, as they lack influence over price developments. Despite positive trends, challenges remain in 2024, alleviated by anticipated improvements in economic sentiment driven by rural development tenders.
