Avian influenza decimates migrating birds in Hungary

Avian influenza kills tens of thousands of migrating birds

The Hungarian Ornithological and Nature Conservation Society (MME, BirdLife Hungary) reported earlier this week that Avian influenza started decimating migrating cranes in Hungary, with the disease starting to cause concerns not just for agricultural livestock farming but nature conservation as well. MME also reports that in the past twenty years, primarily migrating birds spread the viral disease to Europe, North America and the Middle East and that it was only a matter of time before the virus would spread in large quantities to the western half of Eurasia, where duck, goose and seagull populations sustain its presence. Because of this, since the beginning of the 2020s decade, Europe has not been free of the virus.

On the Hungarian situation, the Society reports that the presence of Avian influenza necessitates extensive epidemiological investigations. However, migrating cranes are primarily exposed to the virus here, in the Carpathian Basin, as serious cases of high mortality have not been observed to the north or east along their migratory route. In the summer and fall, MME and the National Food Chain Safety Office (NÉBIH) have examined six thousand wild birds as part of their regular monitoring and bird banding. In that period, infected birds and carcasses were primarily found at seagull and tern colonies. However, the dry summer and fall have decreased the number of viable roosting sites, where large numbers of birds have taken refuge, with densities similar to that of industrial fowl farms, which made for favorable conditions for the virus. Cranes are especially vulnerable to the disease, which has led to mortality in the hundreds and thousands. As the numbers of passing migratory cranes have reached around 200 thousand in the fall in Hortobágy, in the Great Plains, the disease has spread to various parts of Hungary, leading to between 10 and 20 thousand wild cranes succumbing to the disease.

MME’s overview highlights that large-scale industrial fowl farming has contributed to the development of the highly pathogenic strain of Avian influenza, with vaccinations in Asia putting a huge evolutionary pressure on the virus, making it more and more pathogenic and infectious.

Portfolio Group Agriculture Sector Conference

Portfolio Group has held its annual Agriculture Sector Conference in the resort town Siófok, on the shore of Lake Balaton, in West Hungary, this week, and various high-profile decision-makers and stakeholders participated at the industry meet-up.

Minister for Agriculture István Nagy has mentioned in his speech at the event that the subsidy schedule for agriculture and rural development subsidies has been completed and 64 interventions are expected to be announced in early 2024, and that from 2026 onwards, the ministry will be reopening all applications in the same format so that producers can apply in two stages during this cycle. The minister also highlighted that agricultural production should adapt to regional characteristics and should be firmly based on market principles. The agriculture minister also added that aside from the country’s major arable crops, soybean and legume production should also be considered.

Company heads from the food industry concluded in a roundtable that the domestic food industry has faced many issues since the COVID-19 pandemic, and throughout the economic hardships, energy crisis, and the war in Ukraine. However, prices are now stabilizing. On the flip side, input costs will continue to be a dominant factor in the market.

Rector Csaba Gyuricza of the Hungarian University of Agriculture and Life Sciences (MATE) mentioned in his speech that Hungarian agriculture is in need of a paradigm shift, and that practices to conserve the soil and soil moisture will be crucial. For this reason, tilling should be addressed, as it degrades the soil and decreases its moisture content. The rector mentioned that the 2022 European drought was a “catalyzer”, and that water retention in the soil is a much more crucial question than it was 30 or 40 years ago.

Agri-environmental and ecological farming subsidy requested for 1.5 million ha of farmland in 2023

VG.hu reports, based on Minister for Agriculture István Nagy’s recent announcement, that payment requests for close to one and a half million hectares have been submitted for this year's agri-environmental and organic farming support, and the advance payments have been initiated. The portal recounts that in order to bridge the transitional period in the Common Agricultural Policy, the ministry announced new calls for agri-environmental (AKG) and organic farming (ÖKO) grant applications in 2021, covering a three-year commitment period starting from 2022. For agri-environmental support, almost 17 thousand farmers have received support documentation, with a total farmland area of 1.2 million ha. Regarding organic farming, 5500 farmers have submitted grant requests, and they are entitled to support for a total area of around 275 thousand hectares. Agri-environmental payment advances have totaled €68.4 million, and organic farming grant pre-payments were worth in total €21 million.

125 thousand farmers have received advance payments

Magyarmezogazdasag.hu reports that advance payments as part of the Single Area Payment Scheme (SAPS) have been disbursed to 125 thousand farmers, based on information from State Secretary Zsolt Feldman of the Ministry of Agriculture. The disbursement period started in the middle of October. State Secretary Feldman announced this at a conference in Sárospatak. Mr. Feldman also remarked that the economic hardships of the past two years, the war in Ukraine, rising energy prices and input costs have made the situation difficult for agricultural producers.

Mr. Feldman also added that until 2027, €7.67 billion will go into agriculture and rural support in Hungary, out of which, €3.95 billion will be available for investment support.

The State Secretary further remarked that in connection with the Agri-Ecological Program, an agreement was made and that producers who partially fulfill their commitments do not lose the full support.

Further food price increases can be expected

Trademagazin.hu reports that further food price increases might be expected should packaging fees rise next year. The news portal reports that the government has to announce by the end of November the 2024 the fees that manufacturers will have to pay to the concession company for food packaging. The portal recounts that earlier in the summer, food manufacturers were shocked by the high fees. Producers aim to prevent the government from causing further cost increases, as the fees in Hungary are already exceptionally high compared to other countries in Europe.

Trademagazin’s article explains that in the European Union, member states are required to operate their waste management systems based on uniform framework rules. The goal is to achieve high levels of selective waste collection and recycling throughout the EU, and extended producer responsibility (EPR) and packaging fees are part of this framework. The new packaging fees introduced in Hungary were considerably higher than the previous tax obligation, with the tax burden increasing by five to nine-fold in certain cases. This was a shock to the industry, which has led to increased transfer prices. The portal remarks that while in Austria, manufacturers have to pay €0.18 per kilogram of purchased raw materials or plastic packaging used in transportation, and in Czechia this fee is around €0.09/kg, the fee in Hungary is €0.58/kg. Food manufacturers in the country are now strongly urging the government not to further increase packaging fees for 2024.

Plant product prices decreased, animal product prices increased this year

The news portal Üzletem.hu reports that in Q1-Q3, 2023, aggregate producer prices have decreased by 7.3%. Plant produce product prices decreased by 25%, while animal product prices increased by 25%, based on the latest data by the Central Statistical Office (KSH).

Cereal prices fell by 25%, the industrial crop price decrease was even higher, 37%. Especially the prices of wheat and maize strongly decreased since January. Although a temporary increase in May for wheat was observed, purchase prices of wheat were on average 10% lower than in 2021. The prices of fruits increased however, by 14%, and vegetable prices increased by 16%. Out of the vegetable categories, the prices of carrots and red onions increased, by 57% and 63%, respectively. Tomato prices were 6.1% higher. The price of potatoes increased by 46%.

On the decrease of produce prices, higher harvest yields in 2023 probably played a role in the change.

The purchase price of broiler chicken peaked in March, 2023, and since then it has gradually decreased. Between January and September, the price fell by 17% in total. The price of slaughtered pigs increased by 29% however.

Fertilizer prices decreased by 29%, the price of energy however, rose by 30%. Agricultural costs increased by 5.4% altogether, and the price of animal fodder increased by 1.7%. Plant protection agents were 24% more costly in Q1-Q3, 2024, and the price of veterinary products rose by 15%.