Export driven growth of organic farming

1
Export driven growth of organic farming

• The Hungarian model

2
First steps. 1983!

• Biokultúra Klub,
• (later Association)
• the first organic civil organisation in CEE
  region.
• 1500 members,
• own newspaper
• 58 local groups countrywide
• International relations
• IFOAM membership 1987

3
Agropotentials and land use in the late 8Os
4
Privatization 1990

• New forms of enterpreneur-ship
• Changes in average farm size

5
Inspection and certification

• Biokontroll
• Hungária kht
• EU approval on the 3rd Country list in 1995
• State supervision
• Government regulation on principles
• Nr.act 140/1999 (IX.3.)
• Ministerial regulation on production, trade and
  labelling
• Nr.act 2/2000 (I.18.)

6
EU Recognition of Hungary

• EU acknowledged certification organisations of
  Hungary in 2003
• Biokontroll Hungária KHT
• Hungária Ökogarancia Kft
• SKAL Hungary Kft

7
Export dominancy 90!

• Reasons of easy export
• Quality products
• Trust (reliable control)
• Acceptable price
• Geographical advantages
• Comparative benefits

8
Export dominancy 90!

• Target markets
• EU (A, D, F, NL, GB)
• Switzerland
• United States
• Others (accession countries, other CEE countries)

9
Export dominancy 90!

• Some important certified vegetal products

10
Export dominancy 90!

• Main Export Products

11
Export dominancy

• Extraprofit is
• still existing, but resolutely decrease

12
The home market set

• Distribution channels
• Off farm sales
• Weekly ecomarket
• Greenbox system
• Healthfood shops
• Supermarkets

13
Wake processing industry

• Bakery products, baby-food, milk- milkproducts,
  preserves, juices, herbs-and spices, sweets,
  candies, cakes, frozen foods etc.

14
Expected trends tendencies

• SWOT
• Strength
• Nearly 20years experience
• Stable structural system
• Comparative benefits (climatic and soil
  conditions)
• Good practice in large scale farming and seed
  production
• High level of culinar art

15
Expected trends tendencies

• SWOT
• Weaknesses
• Low efficiency in project planning
• Low level of information transfer
• Lack of financial means
• Poor banking activity
• Low level of motivation

16
Expected trends tendencies

• SWOT
• Opportunities
• Growing home market
• Further export expansion
• Brake down trade barriers
• Specialisation
• Growing reputation

17
Expected trends tendencies

• SWOT
• Threats
• Poor banking activity
• Dramatic decrease in animal production
• Low level of information transfer
• Growing competition in Eastern Europe,Balkan and
  Asia