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The Hungarian egg sector. Dr. Györgyi Molnár – P éter Földi Hungarian Poultry Product Board. The presentation…. Hungary in facts Poultry Product Board Egg production. Hungary in facts I. Population: 10, 014 million Land area: 9,303 million ha Agricultural Land: 5,337 million ha
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TheHungarian egg sector Dr. Györgyi Molnár – Péter Földi Hungarian Poultry ProductBoard
The presentation…. Hungary in facts Poultry Product Board Egg production
Hungary in facts I. Population: 10, 014 million Land area: 9,303 million ha Agricultural Land: 5,337 million ha Arable land: 4,322 million ha Cereals: 2,6 million ha (wheat, corn) Animal husbandry: Cattle: 682 000 Pig: 3,2 million Sheep: 1,2 million Horse: 65 000 Poultry: 36 million
The Poultry Product Board (PPB) of Hungary – Who we are? • Non-profit, non-governmental organization, represents the vertical poultry production-chain. It is able to operate self-regulation and represents the industry at national and European level as well. • Duties, responsibilities: Forum for reconciliation in the industry, market-regulation – self regulation, advocacy, lobbying, marketing. • Information: collecting and processing data, informing the members about EU and domestic trends, changes of laws, collaborate with the Ministry of Rural Developmentand the authorities.
Structure of the PPB • Number of members in 2014: 1793 • Six member associations:
Egg sector in Hungary Grandparent/parent stocks (hatching) Grading/ packaging breeding production • 100% - Hungarian ownership • „own” breeding company • 70% of day old chicks hatched In Hu • Most of the producers have own packaging centres as well (and partly own feed mill) • 2 big packaging centres also integrate producers
Laying hens population01. 12. 2013. *including broiler breeders
Backyard production • depending on the feed price: cheap cereal – more hens/eggs • market size is not forecastable • the government wants to increase the ratio of the backyard population – giving work and income to people living on low standard
Capacities of the egg production farms Source: NFCSO, aug. 2012. , PPB calculation
Proportion of the different production systems in Hungary (2012) Capacity: 6 million, farms: 561, hens in: 3,8 million Source: NFCSO, aug. 2012. , PPB calculation
Placement of laying chicks in Hungary (‘000)(2000-2013) Placement of laying chicks (‘000 heads) Source: PPB, 2013
Table egg production in Hungary on intensive farms (In million eggs) (2000-2013) Table egg (million pieces) Source: PPB, 2013
Egg consumption (egg/capita/year) (1980-2011) Egg consumption (egg/cap./year) Source: CSO, 2013
Export – Import statistics of egg (tons) (2003-2012) Export: Romania, Austria, Slovenia, Germany, Lithuana Import: Slovakia, Germany, Poland, Lithuana Volume (tons) Hungary became netto importer on table eggs Egginshell import Table egg import Egg in shell export Table egg export Egg in shell import Source: CSO, 2013
Price change at feed and eggs(January 2010 = 100%) Change at feed price (%) Change at egg (M+L, cage system) (%) Source: Szöllösi, based on AKI PaIR and PPB data
Effects of the accession to the EU- I. • Closed, protected market became opened • Even small surplus of the main egg producer countries can cause problems on the small Hungarian market • (3-4 million poor people take only the price into account ) • Price politics of the commercial chains is based on small size and mixed (S+M, S+L) packed eggs
Effects of the accession to the EU- III. • Administrative market intervention of the EU (Cage ban) causing price cycles • But: low price remains longer than the high price in case of lack of eggs • Amount of the Hungarian import depends on the price (in Euros) but on the exchange rate of the HUF as well • Threats of importing from third countries
Consequence of the accession to the EU • Hen population decreases • Number of producers decreases • Lost self sufficiency in eggs • Only those producers have profit, who have import activities as well • Price pressure • Bigger warehouse stocks from time to time
Clouds above the egg industry • No economic reserve any more • No resource for development • Competitiveness decreases • VAT is 27% • Black-market is relative big • Dominance of chain stores • (actions of the NGO-s, animal welfare politics in the EU) • Import pressure • Low egg consumption
The way to reach our targets • Investment program – with subsidy • Strong collaboration with the government • Opening to the chain store – discussions • Special agricultural credit with low (subsidised) interest • Marketing programs (to increase egg consumption) • Decrease the VAT • Initiate to change regulation(s)
Possible results • 10-12 thousands extra working places (periodically and continually) • Better product quality • Loyalty to the „logo-products” • Higher consumption • Higher self sufficiency rate (more export) • More tax to the government • Smaller black-market • Stable production level (hens and eggs) • Stable market -
Thank you very much for your attention! gyorgyi.molnar@magyarbaromfi.hu www.mbtt.hu