Despite the unfavourable weather, the agriculture sector is clearly performing better this year and agriculture is contributing decisively to the improvement of the country's economic growth, the Ministry of Rural Development's Minister of State for Agricultural Economy György Czerván said at a professional conference in Budaörs, west of Budapest.

At a press conference held at an event organised by the National Association of Cereal Producers (GOSZ), the Minister of State said that agriculture had increased its output by 12 percent and 17 percent in the first and second quarters, respectively, and by 15 percent in the third quarter based on preliminary data, thus contributing to the increase in GDP. The Minister of State indicated, it is hoped that despite the unfavourable weather the agriculture sector will contribute to the country's economic growth at a similar level as it did in 2011, when economic growth was 1.7 percent, of which 0.9 percent was derived from agriculture.

Economic growth in Hungary is achieved if there is also growth in the agriculture sector. The professional performance of those involved in the sector is a significant factor in improved economic output, Mr. Czerván said, adding that the Ministry has also done its best to provide support by decreasing administrative burdens, through various loan constructions and by introducing reversed VAT in the cereals sector.

DownloadPhoto: Csaba Pelsőczy

With regard to the status of the autumn harvest, the Minister of State said that according to data published on 25 November, sunflower has been harvested on 604 thousand hectares and the average yield per hectare was 2.5 tons. Maize is our most popular arable crop (1.223 million hectares), with 6.8 million tons reaching silos this year. The harvesting of sugar beet is still underway, with 1700 hectares still unharvested.

Mr. Czerván pointed out that farmers are on schedule with autumn tasks, autumn sowing was completed in time and work went ahead under optimal conditions. The status of the sown crops is excellent as regards both rape and winter cereals. Autumn deep ploughing is still to be completed this year, and 71% of areas have already been ploughed, he added. According to preliminary calculations, some 2.5 millions tons each of wheat and maize will be available for export.

DownloadPhoto: Csaba Pelsőczy

With regard to the advance payment of area-based funding, the Minister of State said that some 95 percent of farmers would receive the advance on their funding by 30 November. On 2 December, the advance of special milk funding will also be paid, third quarter poultry animal welfare funding will be paid on 17 December, and national supplementary milk funding will be paid to all eligible farmers by the end of the year.

(Ministry of Rural Development)