The Hungarian food industry produces a 20% surplus besides being self-sufficient and this surplus could reach 50% said Mr. Endre Kardeván, who is in charge of the food supply’s supervisory committee and under-secretary of Agricultural management.

He expressed his views at a professional conference held by the Joint Venture Association and the National Association of Food Processing Firms.

At the conference of Hungarian food industry and agriculture examining Hungary’s EU prospects, the under-secretary explained that the possibilities of development are given in the long run, if Hungary can make its production more economical and maintain it. This provides the Hungarian national economy with a significant advantage, since the growing global demand for food is becoming more and more obvious.

Hungarian Agriculture’s share is 2,5% from the GDP and the food industry’s share is 2,1 % while this figure was 13,7% in 1989. The year before investments for the food industry amounted to 75,9 milliard Forints on the actual daily price, which was 11,5% less compared to the previous year. The share of Hungarian production within the European Union is roughly 1% evenly in this sector. This means Hungary is the 16th among the 27 member states. Since the EU’s competiveness is declining and the efficiency of the food supply is low, the Union is facing a challenge. There is a need to change the system, that requires new technology, new structure for the products and the appropriate experts.

Mr. Endre Kardeván stressed that local and domestic markets are most important for the Hungarian Agriculture. This department wants to promote the curtailing of commercial chain and implement a suitable price-system.

A special goal is to support products of higher value and of higher sophistication within the industry in order to recapture the lost domestic and international markets for the Hungarian producers.

Rural development’s key element is to improve the local economy and at the same time, it is the foundation of restoring cooperation between city and country. Therefore, this priority is of special importance for Rural Development and a national interest. It is important to improve small local businesses and industrial activities and it is crucial to use local resources so the money should be circulated in the local communities for the longest possible time. Village communities should have close economical, cultural ties with the nearby cities’ communities.

The following was stressed by the under-secretary of the Ministry of Rural Development: „The fact that producers get closer to customers increases their mutual trust, promotes the communities’ security of food supply, saves energy, decreases the use of additives and wrapping material and in this way environmental protection is promoted.”

(Ministry of Rural Development, Press Office)