Organic Agriculture in Hungary

Hungary offers good conditions for organic production. Many of its low intensity agricultural areas (mostly pastures, meadows, fallows) are free from the effects of agro-chemicals. Its constitution bans the use of GMOs. There are currently 127,000 hectares of certified organic land (about 2.5% of the total agricultural area). More than 1,500 enterprises produce approximately €25 million (equivalent) of organically certified food. Yet it is also clear that the country’s organic sector has not yet reached its potential and that there are numerous unexploited opportunities.

While the organic sector grew quickly between 1996 and 2004, it has since been stagnating. The percentage of organic land in Hungary is just half of the European Union average and Hungary is one of the few European countries where the organic sector has not been expanding. This is partly due to a lack of effective policy incentives, such as suitable subsidies or administrative support, a lack of coordination of export marketing initiatives and of any broad awareness-raising campaigns for domestic consumers. A large part of organic produce is still sold as conventional. Better cooperation between stakeholders is required for the sector to move forward. (Picture: Landscape at the village Hernádszentandrás in Northern Hungary) 
 

The Hungarian Government has recently approved the National Rural Strategy which aims to generate demand for high quality, GMO-free, locally produced food. The document considers organic agriculture as a strategic sector which deserves strong support. The strategy sets very ambitious objectives for the future development of organic agriculture in Hungary. It aims to have 350,000 hectares of certified organic land by 2020, almost a threefold increase on the current total. It is anticipated that subsidies for organic conversion and for yearly certification costs will play a major role in achieving this. Organic producers will also receive priority in future calls from the Rural Development Ministry for diverse support programmes, such as the young farmers’ initiative. Organic animal husbandry and apiculture will receive particular support, as these are priority areas within the Ministry’s agricultural development policy. The National Rural Strategy also foresees the creation of an Organic Action Plan, which will set out a detailed programme for the sector’s development. 
 

Organic farming in Hungary first started in the 1980s. By 1988 there were just 15 organic farms. This figure rose to 108 by 1995, 471 by 2000 and reached its peak in 2009 when there were 1,660 certified organic units. The area under organic cultivation grew from 1,000 hectares in 1988 to 128,690 in 2004 and 140,292 in 2009. Since 2009, the number of operators and the total cultivated area have decreased, dropping back to the 2005 level. Grasslands make up the majority of registered organic land (51.7%), followed by arable crops (38.9 %), perennial crops (4.4 %), and vegetables (1.3 %). (Graph by ÖMKi: Land use types of certified organic area in Hungary 2010)

Although more than half the organic area is grassland, organic animal husbandry is relatively insignificant compared to crop production. In 2010 fewer than 100 farms kept certified organic livestock, which is less than one tenth of the organic producers. This is because most of the animals grazing on organic fields are not certified, as farmers consider the certification costs to be too high (and the existing regulations do not stipulate that only certified animals can be kept on organic grasslands). As a result organic grasslands receive substantial subsidies without creating any final organic product to speak of, showing the inadequate structure of the current support scheme. 
 

Today, organic products in Hungary have just a small market share. About 85% of the total production is exported. Most of it leaves the country as raw materials or as low added-value produce. Most of the produce goes to the EU, principally Germany, Austria, the Netherlands and, outside the EU, to Switzerland. At the same time, the majority of the (modest) organic assortments in Hungarian food stores are processed imports. Some estimates suggest that 90% of domestic organic consumption is made up of imports. (Picture: small vegetable operation in Central Hungary)
 

There is a significant lack of organic processing capacity in Hungary and this could provide interesting potential market opportunities for organic food processing companies. This market opportunity is further enhanced by Hungary’s proximity to countries with large organic markets.
 

Supermarket chains are playing an ever increasing role as distributers of organic products and, as elsewhere, it can be assumed that they will play a major role in expanding the domestic market (see table). However, only few domestic organic producers can currently meet the volumes, quality standards and the regularity of deliveries demanded by the supermarket chains. Pilot projects for product development, quality assurance and cooperation in production are needed to help domestic producers tap into this market. The formation of farmers’ production and marketing groups, organic farmers’ markets and local producer-consumer networks can also be important vehicles for distributing certified local organic products and expanding the domestic market. : Table: Retail channels for organic products (Source: Frühwald, 2012).

In contrast to Western European countries, Hungarian consumers are mainly motivated to buy organic by health considerations. Studies have shown that organic products are favoured because they are free from GMOs, toxic chemicals, additives, artificial flavourings and colourings, preservatives, and are perceived as having a higher quality. Taste, nutritional value and price are less important motivating factors, and ecosystem protection plays a minimal role for most Hungarian consumers. Although demand for organic products is growing, a large percentage of the population, even some of those who regularly purchase organic products, cannot define what organic means, and the difference from non-organic products. Effective outreach programmes and reasoned marketing campaigns are needed to disseminate credible information and to develop consumer awareness. Dissolving the misconceptions about organic production is crucial for increasing domestic consumption.

The future development of organic agriculture in Hungary depends a lot on the EU’s Common Agriculture Policy, how this will be implemented nationally and, most of all, on the realisation of the new National Rural Strategy. Hungarian organic production needs a stronger practice-oriented research basis, there needs to be more dissemination work – underpinned by local scientific evidence - and efforts to increase consumer awareness in order to establish a stable and growing organic sector. Cooperation and better communication between organic stakeholders (producers, traders, umbrella organisations, certifiers, and research institutions) is crucial for effective lobbying work and for Hungarian agriculture to play a role in facing up to global challenges, such as climate change or water and oil scarcity. It is anticipated that market demand for organic products will continue to steadily increase, and some organic farming methods will soon become mainstream agricultural practices. The development of organic agriculture could play a key role in maintaining Hungary’s competitiveness on agricultural markets. This is increasingly recognised within current agricultural policy. Joint efforts by Hungarian organic stakeholders are needed to ensure the realisation of the promising policy plans. (Picture: Onion field for seed production)

The Hungarian Research Institute of Organic Agriculture (ÖMKi) is a private non-profit research centre, founded by the Swiss Research Institute of Organic Agriculture (FiBL) in 2011. The aim of ÖMKi is to advance science and innovation in organic agriculture in Hungary. ÖMKi’s motivated team works closely with many stakeholders in the Hungarian organic movement, initiating, coordinating and implementing innovative research projects, as well as providing training and extension services. This year it started to build up an on-farm experimentation network that has engaged many organic farmers. ÖMKi regularly organizes workshops and vocational trainings for farmers and other stakeholders (often in partnership with other organisations). It has also established a popular PhD and postdoctoral scholarship programme in order to foster the development of a new generation of Hungarian scientists, who will be deeply involved in researching organic agriculture and sustainable production methods. Thus, ÖMKi is striving to support the development and competitiveness of Hungarian organic agriculture and food production in the long run. (Picture: Wheat field in Western Hungary)

All pictures are taken on organically managed fields by ÖMKi. The article was first published in the IFOAM magazine Ecology and Farming September 2012 edition. We thank the authors and editor Peter Brul for the permission to reprint it.
See: www.ecologyandfarming.com