THE HUNGARIAN FOOD INDUSTRY IN 2011

2011 was a successful year for agriculture in Hungary. The agricultural sector contributed significantly to the growth of the national economy. As a result, the share of agriculture in the Gross Domestic Product (GDP) rose from 3.2% to 4.6%. Without the strong performance of agriculture the economic growth in Hungary would have been negligible in 2011.
Agricultural output in value totalled a record 2,169 billion HUF in 2011, up 28.8% from the previous year. The output in terms of volume and the average selling prices of agricultural products soared by 10% and 17% respectively. Not only crop production saw high yields but the output of animal husbandry also expanded after many years of decline.
However, the size of animal stocks continued to shrink with the exception of cattle whose numbers showed an upturn (2%) over the previous year.
The lack of fl oods and less frequent high groundwater levels helped output to rise and increased harvested areas also contributed to gains.
The output of the food processing industry rose by 2.5% in volume last year, marking a reversal of the negative trends of recent years. Yet domestic demand remained weak as in previous years.
The ageing of the population in rural areas continued both in the EU generally and Hungary specifically. The average age is high and the number of young people is declining. This causes economic and social problems.
The new government’s priority is the mid- and long term development of the agricultural sector. The main objective of the new National Rural Development Strategy is to reverse the negative social and economic trends in rural areas.

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