Agriculture played a decisive role in a higher than expected 1.4% rise in the Hungarian GDP in the last quarter of 2011. The output of the Hungarian economy increased by 1.7% in 2011, more than both the European Union average of 1.6% and the eurozone average of 1.5%.

Hungarian agriculture concluded a successful period last year: according to preliminary data, the sector's output rose by 29 percent. Gross added value grew by 48 percent, while net business earnings rose by 75 percent compared to 2010 values.

Hungarian agriculture is traditionally responsible for around 3-4% of the national economy's GDP, twice the EU average. The total agro business, which includes industries that cater to farmers and produce raw materials for agriculture, as well as sectors that accept and process farmers' and producers' goods, makes up 15-20% of the Hungarian economy.

Business was lively with regard to the trading of agricultural products. Last year, our agricultural exports reached their highest level since we joined the European Union, achieving 6.2 billion Euros in exports compared with only 3.8 billion Euros in imports. Exports rose by 17.5%, while imports increased by 15.5% compared to the previous year. Our agricultural import-export balance was 2.3 billion Euros. This figure – thanks to the increase in exports – rose by 21%, meaning that exports were responsible for 35% of the whole national economy. Last year's 2.3 billion Euro import-export balance is an increase of 10% compared to 2010 figures.

New markets have opened up for Hungarian agriculture, primarily the Russian market, to which we exported 21% more goods – mainly fruit, vegetables and food industry products – than in the previous year. Our Russian balance exceeded 173 million Euros in 2011, meaning that Russia is now among the country' ten most important foreign trade partners.

One of the significant success stories of Hungarian agricultural diplomacy resulted in 126 Hungarian meat production plants and three dairy product plants receiving export permissions for the Russian market within a period of only three months. During the previous government, there were only thirty such businesses in the country. Our agricultural exports to Algeria, Kazakhstan, China and Saudi Arabia also began a significant increase.

The sum of money spent on the purchasing of new agricultural machinery and equipment rose by 83% in 2011, compared to the previous year. Last year, investment in agricultural machinery was in excess of 78 billion HUF. During the same period, farmers spent 34.8 billion HUF on parts and accessories, 19% more than in the previous year.

In addition to being a key factor in the country's economic performance, agriculture also plays a significant role in employment. Thanks to the new simplified regulations that came into force last summer, the number of people employed in the affected sector increased by 50% in a single year. While 254 thousand seasonal workers were registered by agricultural and tourism-related businesses in July 2010, this figure more than doubled to 512 thousand last year.

Thanks to the National Rural Strategy and its implementation programme, the Ignác Darányi Plan, this year promises further progress regarding the improvement of the balance between crop cultivation and animal husbandry. A good sign of this process is that stocks of cattle have begun to increase significantly, the pig sector strategy has been completed, and a special support system is in place to aid sheep and goat farmers.

(Press Office of the Ministry of Rural Development)