Hungary: Economic and climatic challenges in agriculture

Frosts devastated more than 25 thousand hectares of land

Minister for Agriculture István Nagy has announced that based on 3,700 damage claims submitted electronically until May 19, more than 25 thousand hectares of farmland have been damaged by frost this spring.

Nearly 90% of damage reports were linked to the severe frostwave experienced during the April 6-11 cold snap, when temperatures in some areas dropped as low as -7 to -8°C.

Of the affected land, two-thirds (17 thousand hectares) consisted of orchard crops, primarily apple (6,200 ha), sour cherry (3,100 ha), apricot (2,300 ha), and plum (1,500 ha).

By far the most affected county was Szabolcs-Szatmár-Bereg, with 8,600 hectares impacted, accounting for roughly one-third of all reported damage. Additionally, more than 2 thousand hectares of frost-related losses were reported in Hajdú-Bihar, Békés, and Bács-Kiskun counties. According to a survey by FruitVeB, Hungary’s largest fruit and vegetable growers’ organization, the April frosts affected 80% of the country’s fruit-growing areas.

The damage to orchards is estimated at several tens of billions of forints — amounting to hundreds of millions of euros.

Foot and mouth disease contained, EU Restrictions Lifted

Hungary has successfully brought the recent foot-and-mouth disease (FMD) outbreak under control, prompting the European Union to lift all related trade restrictions, Minister for Agriculture István Nagy and the National Food Chain Safety Office (NÉBIH) stated on Friday, June 6.

The outbreak, Hungary’s first in over fifty years, emerged in March. Following the successful containment, the EU has now lifted all protection and surveillance zones, along with the previously designated restriction areas.

The disease affected approximately 19 thousand animals. More than 2,900 farms were tested, and out of concern that the virus might spread to wild populations, nearly 5,300 wild game meat samples were also examined. Between March 6 and April 17, cases were detected in five separate communities in North-West Hungary - and the virus also appeared across the Danube, in Slovakia.

With the removal of the restricted zones, domestic trade within the EU can now resume without disruption. However, talks are still ongoing regarding exports to third countries outside the Union. The veterinary authorities’ top priority is to regain Hungary’s official FMD-free status under the guidelines of the World Organisation for Animal Health (WOAH). According to NÉBIH, the earliest Hungary can formally request the reinstatement of its disease-free certification is July 20, 2025.

The long (financial) shadow of the foot and mouth disease

Although the livestock disease has officially been stopped, the foot and mouth disease (FMD) outbreaks in Hungary will continue to linger. Trademagazin.hu reports that affected farms are entitled to compensation and one year of loan moratorium. These are not enough however.

From a financing perspective affected farmers will require further measures, writes Trademagazin.hu, as restarting a cattle farm typically takes between 3 to 5 years before it can begin generating revenue again. Moreover, during the restart process, the enterprise continues to face both fixed costs (such as utility expenses, labor costs, incidental maintenance, upkeep costs, and essential repair costs) and variable costs (including medicine, feed, and other production-related expenses), all of which must be continuously covered by the business.

Hungarian farmers receive notice of their area-based subsidies being slashed

Népszava.hu reports that, numerous farmers have been notified by the Ministry of Agriculture that they will only receive part of the EU subsidies tied to the agroecological program (AÖP), leaving major holes in their annual budgets. Many say the Ministry’s justifications are unrealistic or overly bureaucratic, citing vague rules and questionable interpretations. One farmer had his payment halved because submitted photos didn’t clearly show the mowing equipment he used — a reason he called outright absurd. Another described the whole situation simply as “a complete screw-over.”

The National Federation of Agricultural Cooperatives and Producers (MOSZ) confirmed the issue, with president Máté Koncz linking it to Hungary’s CAP Strategic Plan. He said the subsidy rules, approved by the European Commission, place heavy administrative burdens on farmers. MOSZ had warned early on that the system could create unrealistic situations.

„In the case of the grassland [referring to one of the farmers who only received half their subsidy amount], the requirement isn’t to prove that mowing took place, but to clearly show that it was done with the prescribed machinery. If that isn’t evident, authorities may decide to award only a portion of the subsidy even if the grass was properly cut.”

The subsidy procedures were not mandated by the EU but designed nationally, including the strict conditions and penalties, says MOSZ president Máté Koncz. While some reforms have been achieved, he warns the current system imposes unrealistic administrative burdens and is causing serious hardship. The issue escalated as farmers recently received letters informing them they’ll only get partial payments for 2024, just weeks before the June 30 deadline. With several bad harvest years and depleted reserves, many now rely heavily on these funds, and without them, some may be forced to quit farming. MOSZ has called for urgent talks with the Agriculture Ministry.

Women farm managers more eco-efficient, study says

A Hungarian-Slovenian research group, led by Imre Fertő of the Corvinus University of Budapest, researched gender-based differences in eco-efficiency among arable farms in Hungary. The study was published in Nature this month. The results showed that women-headed farms had a clear advantage in eco-efficiency. The researchers attributed this advantage to „women’s ability to optimize resource use effectively, though unexplained factors also contribute, suggesting potential differences in management practices.”

According to the study, these farms make better use of resources, operate more efficiently, and produce their goods with less environmental impact. The research examined more than 300 farms. The researchers created a value for eco-efficiency, ranging from 0 to 1. Women-headed farms scored 0.361 on this eco-efficiency value, while men-headed farms scored at 0.316, with the results being statistically significant  (p =.001). It is worth noting that women-headed farms are usually much smaller in size and employ less labor, cultivate fewer parcels, and produce and sell fewer product. There is no gap between share of family labor and share of market income however. Generally, women-headed farms seem to optimize resources better, and have a higher rate of eco-efficiency.

„These findings highlight the need for policies that support women farmers’ access to resources, knowledge, and innovation in eco-friendly farming practices, helping to enhance sustainability in agricultural production,” the researchers write.

„Encouraging women participation in sustainable agricultural entrepreneurship could play a critical role in driving eco-efficiency across the crop sector, ultimately contributing to environmental resilience and rural socio-economic development.”

Professional organization believes that organic foods are on the rise

The Research Institute of Organic Agriculture (ÖMKi) has released new data on the retail sales of organic food in Hungary between 2022 and 2024. According to ÖMKi, the market value of organic food „grew dynamically over the three-year period.”

According to data collected by NielsenIQ (NIQ), the retail turnover of organic products in Hungary increased from €71.25 million in 2022 to €96.75 million in 2024, which was a  growth of 36%. This accounted for 0.62% of the total food and beverage retail turnover measured by the Central Statistical Office (KSH).

It is important to note that the data collection did not cover retailers specializing in organic products, markets, direct sales, or several key product categories within the organic sector (e.g., dried fruits, pulses, and baked goods). The researchers adjusted the data for these biases, and concluded that the total organic market represents approximately 0.8–1% of Hungary’s total retail food sales, based on the KSH figures as baseline.

In Hungary, the increase of the share of economic products was 19% between 2022 and 2023, while the EU average was 3%. The most popular products by far are organic baby foods. Between 2022 and 2024, their sales value increased by over one-third, rising from €16 million to €21.5 million.

Organic vegetables and fruits generated the highest total sales values in the organic sector. The sales value of organic vegetables grew by 39%, reaching €14.75 million in 2024. The top-selling items in this category were white mushrooms, cucumbers, carrots, tomatoes, and onions. The retail sales value of organic fruits grew by 41% over the same period, reaching €14.25 million. A significant portion of these sales occurred in discount supermarkets.

Between 2005 and 2023, the number of organic producers in Hungary rose from 500 to 6 thousand, and the certified organic farmland expanded from 125 thousand to 320 thousand hectares. This means the organic area grew 2.5 times, while the number of producers increased fourfold, while the share of ecological production in the total farmland area of the country increased from 2,6% to 6,4%.

It is worth noting that Hungary has experienced considerable food inflation in the past years.

Import strawberry continues to conquer the market

The latest fruit sector report by the Institute of Agriculture Economics (AKI) shows that the import of strawberries has increased in 2024 by 30%, to 3,596 tons. Exports dropped by 16% to 121 tons last year. Only a small portion of the strawberry harvest is shipped abroad, the fresh produce was exported to Slovenia and Slovakia last year.

This year, at the Budapest Wholesale Market, imported (Greek) strawberries appeared in the supply starting from week 4. The imported product was sold at a wholesale price of €6.90/kg during weeks 4 to 15, until Hungarian strawberries entered the market.

Imported strawberries remained available alongside the Hungarian product, and their average wholesale price of €4.18/kg during weeks 15–19 was 13% higher than in the same period of the previous year. Domestic strawberries entered the Budapest Wholesale Market in week 15 at a producer price of €9.75/kg.

Agrárszektor.hu reports, based on the latest Eurostat data, that while Spain and Greece increased their strawberry sales in  the EU common market, by 1% to 218.2 thousand tons and by 5% to 74.8 thousand tons, respectively, the Dutch export decreased 6% to 42.9 thousand tons compared to 2024.

Poultry sector sees slowing trade and fewer slaughters in 2025

Agrárágazat.hu reported last week on the situation of the poultry sector in Hungary.

While producer prices and changing trends characterized the international market in the beginning of 2025, Hungary saw declining slaughter figures, the portal writes.

Hungary’s poultry meat exports fell by 5.5% to 33 thousand tons in the first two months of 2025. Turkey meat exports dropped by 14% to 3.5 thousand tons, while chicken meat exports showed a slight 4% increase, reaching 25 thousand tons. The main export destinations were Romania and Slovakia.

At the same time, poultry meat imports also declined, dropping by 20% to 10 thousand tons. Turkey meat imports fell especially sharply by 44%, to 465 tons. Imports of chicken meat also decreased, though comparatively to a lesser extent, down 3% to 9 thousand tons. The vast majority of imported poultry came from Poland.

Figures also declined at the slaughter houses. In Q1 2025, 170 thousand tons (live weight) of poultry were slaughtered in Hungary, marking a 5% decline compared to the same period in 2024. However, within this total, the volume of slaughtered broiler chickens rose by 7% to 137.1 thousand tons, while turkey slaughters increased by 3.8% to 17.4 thousand tons - highlighting differing trends by species.

The portal notes that while declining volumes and regional disparities can be observed in both international and domestic poultry markets, rising prices continue to characterize the sector. Amid cost and inflationary pressures, both producers and processors are adapting to the current supply-demand dynamics.

Agrárágazat also points out that Brazil’s suspension of all chicken exports due to Avian influenza is likely to have an impact on Hungary’s market, as well as on the broader EU poultry sector.

Hungary’s inflation 3rd highest in the EU

Trademagazin.hu recently reported on the latest inflation figures in Hungary, comparing it to the latest monthly data from other countries. The report is based on a new analysis on the inflation trends in Europe by Privátbankár.hu.

Hungary’s annual inflation rate fell by 0.5 percentage points, from 4.7% in March to 4.2% in April. However, out of 39 European countries, inflation was higher in only seven, and among EU member states, only Estonia and Romania reported higher rates.

According to the report, had Hungary’s inflation dropped to 3.5–3.6%, it could have outperformed seven to eight other countries in the ranking. In March, this was still possible. Analysts considered a larger decrease in inflation a reasonably possible scenario, as the profit margin cap introduced for certain food products on March 17 was fully in effect throughout April.

With the more moderately decreased inflation figure however, Hungary ranked 25th in the EU’s inflation chart. The country’s highest figure this year was in February with an inflation figure of 5.7%. Hungary achieved its inflation high score in early 2023, when annual inflation soared past 25% for several consecutive months.

Agriculture industry continues to struggle with labor shortage

Agrárágazat.hu reports that in the summer and fall of 2025, Hungarian agriculture will continue to face serious issues with the shortage of manual labor.

The number of reliable, available, and affordable workers is decreasing, while costs are rising rapidly, the portal reports. The issue is complex according to Agrárágazat. Legislative changes that came into effect in February 2025 have significantly increased the public charges associated with seasonal labor (more on this here), while workers’ wage expectations have also gone up — the current daily wage has reached around €45. (Read more about Hungary’s rising inflation here.)

Agriculture is already adversely affected by the labor shortage. Sowing and harvesting may face delays, the risk of crop losses is increasing, production costs are rising, and due to the lack of skilled labor, the quality of harvested produce may also deteriorate.

Citing data from the Central Statistical Office, the portal reports that the shortage of subordinate, non-skilled labor is becoming increasingly apparent in agriculture as well. At the same time, due to an uncertain employment environment, younger generations are showing less interest in agricultural work. This could lead to a collapse in labor supply within just a few years. According to experts, the projected 5% wage increase for 2025 is not sufficient on its own to resolve the labor shortage, the portal notes.

The sector is trying to compensate with immigrant workers: the quota for 2025 has been set at 35 thousand, which is lower than last year’s, but it may still provide significant relief for the sector.

Automation might be a way forward, especially in irrigation, the portal concludes.

Foxes and golden jackals might spread deadly disease

ATV.hu reports that a rare form of echinococcosis, alveolar hydatid disease has already spread 45 people in Hungary in the past five years, with four deaths, which is caused by a type of tapeworm. The disease spread into Hungary 25-30 years ago from the North, from across the Danube and Ipoly rivers. Caniformia mammals, mostly foxes and golden jackals, are dangerous vectors of the disease as they predate on infected field mice.

The area of Outer Somogy near Lake Balaton, as well as the Dráva Plain, are epidemiological hotspots where the prevalence of Echinococcus infection among predators significantly exceeds the average typical of Southern Transdanubia, stated a group of MATE university, which studies the disease. According to Dr. László István Sugár, professor emeritus of the Agriculture and Environmental Sciences Faculty of the University of Kaposvár has stated that Alveolar echinococcosis is an incurable, lifelong disease that sooner or later leads to death.

In theory, one can become infected while picking wild mushrooms in the forest or even in their own garden, for example, by consuming unwashed mushrooms, strawberries, or other produce. The parasite’s eggs can adhere to the surface of plants and enter the body that way, where they cause liver damage that is often only detected at a late stage, the professor said.