by PressGrain harvest in Hungary suffers due to weather and industry problems
Grain harvest in Hungary: industry overview
Last season, Hungary’s grain harvest declined. This was due to a severe drought combined with unusually high temperatures. Nevertheless, producers are hoping for an improvement in the situation this year.
It is worth noting that the country’s agricultural sector has undergone a number of changes that also affect grain production. According to FAS statistics for 2024:
— the number of enterprises in the sector decreased by 19% compared to figures from 2020;
— the number of horticultural and field farms increased by 10%;
— horticultural and field enterprises currently account for 73% of all agricultural activity in Hungary.
Many small farms were unable to survive the unstable economic conditions and left the market. Consequently, the industry underwent a transformation, with some enterprises merging to strengthen their positions. This consolidation has led to a rise in the number of farms. According to FAS data, the average enterprise size is around 28 hectares. This is almost twice the figure for 2010.
Industry characteristics
Changes in the sector have led to a number of issues that are complicating production. The most significant of these are rising energy prices and rapid inflation. In addition, the industry has suffered from drought for several years, reducing grain yields.
Agriculture plays an important role in the country’s economy:
1. Agricultural land accounts for 55% of the country’s territory. This is one of the highest figures among European Union countries.
2. Arable land accounts for 82% of the total agricultural area, exceeding 4 million hectares.
3. Pastures cover a total area of 800,000 hectares, accounting for 16% of the total agricultural land.
4. The key crops include wheat, oilseeds, and corn.
5. Hungary also grows horticultural produce and produces plant seeds.
Despite its importance, production volumes in the industry are declining. In 2024, the harvest decreased by 11%. The total value of agricultural products fell by 8% to just over US$11 billion.
The number of agricultural enterprises in Hungary continues to fall. At the same time, the area under cultivation is growing. The area dedicated to grain crops increased by 60%, to industrial crops by 23%, and to fodder crops by 8%. By expanding their land, farmers are trying to compensate for crop losses due to a lack of rain.
Dry weather has forced producers to rethink their priorities. Many have reduced corn cultivation and switched to other crops. Against this backdrop, the area dedicated to winter wheat has grown by almost 10%, reaching 1 million hectares. The area dedicated to winter barley has grown by 28% to reach 412,000 hectares. Meanwhile, the area dedicated to corn cultivation has decreased from 1 million hectares to 771,000 hectares.