Record Demand for Food Industry Grants: HUF 708 Billion in Applications

There is huge interest in the renewal of the food industry, as over HUF 708 billion (EUR 1.7 billion) of applications have been received for the call for proposals of the Ministry of Agriculture, originally announced with a budget of HUF 150 billion (EUR 373 million), said Minister of Agriculture István Nagy.

The politician stressed that the government’s goal is to renew and keep the food industry in domestic hands. “The left-wing governments had destroyed the sector and sold it to foreigners, and today they still represent the interests of foreigners,” he noted. He recalled that it was György Raskó, an advisor to the TISZA Party, currently the largest opposition party, who sold the Hungarian food industry to foreigners. Now they are again representing the interests of foreigners. In Brussels, they support proposals that would end up with Ukrainian big companies receiving area-based subsidies instead of Hungarian farmers, he added.

On the other hand, the government is committed to making the fullest possible use of the potential of the Hungarian agricultural and food sector, one of the most important interests of the national economy, he emphasized.

This is why the Ministry of Agriculture has launched the largest investment program in the agricultural and food sector since the fall of communism (regime change, 1989).

Thanks to the maximum national co-financing of 80% of EU funds from 2021, in the last three years alone, HUF 400 billion (EUR 996 million) has been spent on the development of livestock farms, over HUF 100 billion (EUR 249 million) on the modernization of horticultural farms, some HUF 230 billion (EUR 573 million) on expanding food industry capacity, and HUF 180 billion (EUR 448 million) on the transition to precision farming. Thanks to these investments, farmers can be further strengthened and the sustainability of rural areas can be further improved, the Minister stressed.

He recalled that two calls for tenders for the renewal and modernization of food processing were launched this summer, with a total budget of HUF 200 billion (EUR 498 million).

There were two calls for proposals, one for small projects and one for large projects, so that they would not compete with each other for funds.

The calls, which have just closed, were met with huge interest. Over 860 projects received HUF 54 billion (EUR 134 million) under the call for proposals to support the development of processing plants, aiming to help small projects achieve their objectives.

The call for support for the complex development of processing plants to help create capacity to compete on international markets and boost domestic exports attracted applications totaling more than HUF 708 billion.

The politician said it was “fantastic to see how many people see the potential in the sector.” This overwhelming enthusiasm for development and entrepreneurship is proof that stakeholders are also partners in the government’s overall modernization of agriculture and the food industry, and that they are consciously committed to doing their bit, he underlined.

István Nagy also pointed out that according to market players’ calculations, agricultural income could increase by up to HUF 160 billion (EUR 398 million) a year from 2026-2027 through investments under the tenders now being launched, meaning an increase in income of more than 10% for the sector.

Commenting on the results of the past period, he said that the performance of the food industry has not only increased, but the share of processed products in agricultural exports has also risen to 74.2%. Foreign trade surplus increased by 65%, also the result of technological improvements, government support, and adaptation to market needs.

Via MTI; Featured image via Facebook/Szijjártó Péter