In 2013, Hungarian agriculture preformed better than in previous years, as also indicated by the fact that it contributed to a significant extent, by almost 50 percent, to the 1.8 percent increase in GDP recorded in the third quarter of 2013, Minister for Rural Development Sándor Fazekas told Hungarian news agency MTI, reviewing the sector's performance in 2013.

Mr. Fazekas pointed out that Hungarian agriculture had improved its performance in the first, second and third quarters by 12, 17 and 15 percent respectively, while fourth quarter figures are also expected to show an increase in the sector's performance well in excess of 10 percent. Accordingly, the agricultural economy is expected to contribute to the gross national product (GDP) to a similarly significant extent as it did in 2011. According to preliminary data from the agricultural invoice system, agricultural output is expected to have grown to 2265 billion forints from 2173 billion forints last year. This equates to an increase of some 4 percent.

Agriculture contributes significantly to the increase in GDP in Hungary, he added. Accordingly, it is important that people operating within the sector work well, and the Ministry is providing all possible help for this purpose, Mr. Fazekas said, citing as examples the reduction in administrative burdens, the various loan constructions and funding available and the fact that the regulatory background of the various sectors has been put in order.

In the interests of further increasing the excellent performance of the agriculture sector, the development of 30 strategic planning documents for the 2014-2020 financial period was completed by the Ministry of Rural Development before the end of the year. The Ministry completed the task using 140 million forints in jointly financed state and EU funding awarded within the framework of the New Széchényi Plan's Operative Programme for State Reform. During the work, experts from the Ministry developed 13 strategic documents and 17 impact studies based on analysis of determinative areas managed by the Ministry, including strategies for among others the development of the pork and the fruit & vegetable sectors, the preservation of biodiversity, the modernisation of the food industry, conservation, agrarian innovation and rural development tasks for the 2014-2020 period.

Minister Fazekas emphasised that the goals of the Government's land acquisition policy are centred on the strengthening of family run farms and the agrarian middle class. It was for these reasons that the new act on the trade of agricultural land was developed and subsequently adopted by the National Assembly. The new Land Act represents the beginning of a new era, because the socialists governments had an interest in the facilitating the success of large farms, while in contrast the present Government sees the future in smaller, family-run farms. This is why it launched the Land for Farmers Programme, within the framework of which 250 thousand hectares of state-owned farmland is being distributed in leasehold. Some 3000 contracts have been concluded within the Programme so far and almost 70 percent of successful tender applications are working the acquired farmland as family businesses.

One of the most important tasks in the new European Union financing period that began on 1 January 2014 is the development of the Hungarian food industry, so that that Hungarian agricultural products can be put on the market at the highest level or processing, he stressed. Accordingly, the value of food industry development projects realised in Hungary by 2020 may reach several hundreds of billion of forints.

Mr. Fazekas also mentioned that locally produced foods are gaining in popularity, something which is also indicated by the fact that the ratio of their domestic consumption has increased from 6-8 percent to 8-12 percent. To this end, the Ministry has simplified and is promoting the establishment of as many new, local markets selling traditional products as possible. In addition, it wishes to significantly increase public awareness of the advantages of the consumption of local produce. New legislation now makes it possible for locally produced food ingredients to be incorporated in to public catering (e.g. school meals) without the need for public procurement tenders, he indicated, adding as an example that this is one of the reasons why, among others, the Government wishes to increase the number of slaughterhouses to fulfil local demand.

The Minister for Rural Development also stated that it is also important to note that the standard or living of people living in rural areas and the required infrastructure is also improving continuously. This goal is served, among others, by the Farmstead Development Programme launched in 2011 with national funding, the establishment of a network of integrated community spaces, and the reconstruction and renovation of the building that provide a home for these spaces. The preservation of the natural environment, including biological diversity, is also an important task, he said, as is the fact that everyone should have the opportunity to find out about and experience the country's natural treasures. The framework programme for an accessible Hungary encompasses hiking, cycling, equestrian and aquatic tourism. Hiking and conservation are closely linked, as also indicated by the fact that state forests now place special emphasis both on maintaining their public health function and on the protection and preservation of the environment.

Sándor Fazekas emphasised that Hungary is a clear winner of the European Union's Common Agricultural Policy (CAP), and accordingly the Government is making every effort to make the best use of the opportunities it has succeeded in gaining. Hungary's share of CAP funding has increased from 2.4 percent in the previous period to 3.2 percent in the 2014-2020 financing period, meaning 12.3 billion euros will be available during the 2014-2020 period, compared to a total of 10.4 billion euros in 2007-2013. Mr. Fazekas also stated that Hungary must retain its GMO-free status, as determined by the parliamentary decree that has been in force since 2006 and was agreed on by all five political parties with seats in Parliament at the time.

(MTI)