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9. Agriculture

The natural conditions in Baranya county are favourable for the cultivation of field crops and in the east of the county - are particularly good for growing wheat and corn.

The range of produce that developed over the centuries is quite wide.

Vine growing has long traditions in the Villány-Siklós region and around Pécs, on the southern slopes of the Mecsek Hills.

Fruit production is not as significant as that of vine, even though the varied surface, soil and climate are well suited for this purpose as well.

The area of forests has been on the increase recently thanks to the continuous plantation and today it exceeds 100,000 hectares, two-thirds of which are utilised by the state-owned firm called Mecsek Forest Co.

The valuable stock of game attracts a large number of hunters from abroad, too.

9.1. Trends in Production

In the 1980s about 70 % of all agricultural products were consumed domestically and some 30% was exported, mainly to countries that today are members of the Commonwealth of Independent States (CIS).

When the volume of export decreased dramatically in the last couple of years, and domestic consumption also fell significantly, the agriculture suffered a serious crisis, which was deepened by the fact that imported goods suddenly meant a strong competition.

It does not seem realistic to expect a considerable increase in exports in the short run, therefore the government makes efforts to protect the domestic market by imposing duties, quotas and very strict hygienic requirements, which falls in line with the European standards.

Other government measures are meant to encourage multinational corporations that now own many of the Hungarian food processing companies (in tobacco, meat, sugar, beer, vegetable oil production, deep freezing) to promote the integrated domestic production of raw materials and make investments into the food industry in order to enlarge the assortment of high quality products.

Area by land-use categories May 31, 2001 (hectares)

Land use category

1980 1990 1999 2000 2001

Arable land

224 599

227 787

230 555

220 958

228 305

Garden

16 831

19 158

3 949

3 484

3 484

Orchard

3 289

1 768

1 763

1 741

1 062

Vineyard

6 111

5 010

4 944

4 051

3 241

Grassland

47 164

37 202

35 931

32 412

33 901

Agricultural area

297 994

290 925

277 142

262 646

269 993

Forest

97 497

102 652

103 417

103 820

103 820

Reed

696

494

659

961

961

Fish-pond

1 545

1 304

1 031

937

937

Productive land

397 732

395 375

382 249

368 364

375 711

Uncultivated area

42 861

44 651

61 087

74 966

67 619

Total

440 593

440 026

443 336

443 330

443 330

Area by land use categories and form of association

Land use category

Economic associations

Individual farmers

Non-agricultural producers

Total

Arable land

133 469

91 897

2 939

228 305

Garden

1

2 568

915

3 484

Orchard

319

743

-

1 062

Vineyard

714

2 527

-

3 241

Grassland

5 605

20 915

7 381

33 901

Agricultural area

140 108

118 650

11 235

269 993

Forest

63 178

40 642

-

103 820

Reed

123

494

344

961

Fish-pond

589

302

46

937

Productive land

203 998

160 088

11 625

375 711

Uncultivated area

9 137

2 563

55 919

67 619

Total

213 135

162 651

67 544

443 330

In the mid-1990's, plant growing hardly reached the 70-80 % of averages in the 1980s (see Table) and only the production of vegetables showed a slight increase. By 2001, however, almost all crops production averages reached or exceeded those in the 1980's.

The Cannery of Szigetvár has been closed down, which has further reduced the market for fruits, therefore the share of individual farming is growing, similar to the vineyards.

The state-owned Bóly Plc is a decisive actor in the agriculture of the county, because its 1600 employees and the 22 000 hectares of land under cultivation make it the largest agricultural firm in Hungary.

Its main activities include the production and sale of sowing seed, the breeding of cattle, pig, poultry and horses, the genetic protection and development of the species.

Production averages of main crops (kg/hectare)

Name

average of years

1999

2000

2001

Of which:

Economic associations

Individual farmers

1986-1990 1991-1995

Wheat

5 170

4 630

4 410

4 520

5 200

5 270

5 070

Double

-

-

-

-

-

-

-

Maize

5 490

6 390

7 180

4 610

6 990

6 790

7 180

Rice

-

-

-

-

-

-

-

Winter barley

4 710

4 300

4 160

4 430

5 080

5 220

4 000

Spring barley

3 080

3 010

3 220

3 140

3 260

4 170

2 670

Rye

3 500

3 920

4 200

3 980

4 480

5 050

3 080

Oat

2 690

2 820

2 870

2 770

2 880

2 760

3 000

Triticale

4 230

3 400

2 970

4 090

4 300

4 840

3 710

Potato

17 300

22 230

22 020

19 770

22 100

23 040

22 000

Peas

2 400

2 010

2 230

1 620

1 880

1 890

1 850

Soya beans

2 050

2 230

2 580

1 440

2 070

2 110

2 000

Sunflower seeds

1 980

1 530

1 650

1 950

2 090

2 390

1 800

Rape seeds

1 760

1 640

1 720

1 720

1 930

1 920

1 950

Oil-flax seeds

1 600

1 380

1 870

1 100

1 300

1 300

-

Tobacco

1 410

1 270

1 600

1 600

1 470

-

1 470

Sugar-beet

35 250

53 050

59 620

36 280

55 140

57 630

45 000

Silage-maize

24 900

27 330

30 200

20 530

28 650

28 750

22 000

Csalamádé

8 080

10 080

11 000

10 000

10 000

-

10 000

Lucerne-hay

5 760

5 300

5 400

4 590

6 460

6 640

4 500

Red clover hay

3 650

4 610

5 380

2 000

4 400

1 830

5 000

Production of meat-animals and related products

Definition

1980 1990 1999

2000

2001

Economic associations

Beef cattle (ton)

12 698

10 092

2 560

2 438

2 575

Hog (ton)

31 824

37 751

26 889

30 019

29 181

Horse (ton)

74

10

-

 3

-

Sheep (ton)

822

363

2

3

27

Rabbit (ton)

546

410

491

453

411

Hen (ton)

12 127

18 431

7 706

14 376

16 050

Goose (ton)

18

102

-

-

-

Duck (ton)

647

1 785

32

66

32

Turkey (ton)

1 430

2 432

97

1 370

1 633

Cow's milk (1000 l)

96 548

116 289

77 257

79 892

94 738

Hen egg (1000 pcs)

71 658

51 579

40 856

36 172

36 322

Individual farmers

Beef cattle (ton)

-

1 262

774

428

967

Hog (ton)

-

39 462

19 257

20 464

14 212

Horse (ton)

-

69

96

79

183

Sheep (ton)

-

172

369

527

269

Rabbit (ton)

-

2 214

537

450

339

Hen (ton)

6 029

8 731

3 747

3 452

6 822

Goose (ton)

290

244

58

107

208

Duck (ton)

254

3 705

603

304

112

Turkey (ton)

1 241

1 981

407

833

875

Cow's milk (1000 l)

33 290

25 488

16 176

14 945

13 965

Hen egg (1000 pcs)

115 472

116 280

67 500

60 000

60 000

There has been a serious setback in animal husbandry as compared to the early 1980s. The decrease is especially drastic in cattle breeding and hen egg- and cow's milk production for both associations and individual farmers, while the number of hogs decreased drastically for the individual breeders and stagnated in agricultural associations.

9.2. Institutional Changes

In 1985, there were 5 state farms, 1 forestry and wood processing firm, 60 agricultural co-operatives and 1 fishing co-operative operating in the county. Individual farmers cultivated 5,000 hectares, i.e. 1.7 % of all agricultural land.

More important than the individual farms were the so-called household plots given to agricultural workers and members of agricultural co-operatives. The total area of these household plots amounted to 29,000 hectares (10 % of all land under agricultural production), two-thirds used for gardening, fruit growing and vineyards.

Market liberalisation and privatisation in the 1990's resulted in the proliferation of various forms of agricultural enterprises. Following the privatisation of many state farms, the disintegration of the old co-operatives, the high number of small farms and the closing down of many purchasing agencies also had an unfavourable affect on agriculture. 

As part of the 'compensation’ process, 60,000 hectares were privatised at auctions before March 1994.

By 1994, the 67 major agricultural organisations cultivating areas of 4,000-5,000 hectare became disintegrated and their place was taken by 259 smaller organisations with separate legal status, cultivating an area that was 20 % smaller than before.

The number of agricultural enterprises was growing further in the late 1990's and developed into the following categorization:

Number of economic organizations by number of employees and form of association, 2001

Number of employees Economic association of which: Private enterprise Total
Co. Ltd. Co. Co-operative Limited Partnership

0 and unknown

314

108

1

33

77

841

1 155

1 - 9

329

175

1

23

111

157

486

10 - 19

29

21

1

7

-

2

31

20 - 49

37

27

5

3

2

1

38

50 - 249

40

8

20

12

-

-

40

250 and more

2

-

2

-

-

-

2

TOTAL

751

339

30

78

190

1 001

1 752

Definition of the category 'individual farmer' in statistical analysis:

  • cultivates a total area of at least 800 m2 (garden, orchard or vineyard), or
  • uses at least 1,500 m2 of arable land, or
  • breeds one big (quadruped) animal , or
  • 50 poultry, or
  • 25 others (e.g., rabbits, pigeons)

Data taken on 30 September 1994

- number of individual farmers 43,505

of these producers for the market 1,098

- household members of individual farmers 133,569

At least half of individual farmers defined by the above criteria are pensioners, and one third live in towns.

9.3. Employment

In 1994, the number or rural population in the county was 174,000, 5,700 of which were employed in the industry, 6,000 in different services and 7,300 in the public sector (public administration, education, health services). Agricultural organisations employed a total of 10,000 people.

Of the 100,000 people living in the south and west of the county about 30,000 would be still active, but only 10,000 can find jobs, consequently the others can only make a living by subsistence -level individual farming, on very small pieces of land.

Seasonal jobs are open in the vineyards of the Villany- Siklós region between March and October.

Number and earnings of employees in agricultural economic associations, 2001

Definition Number of full-time employees Gross Net

monthly average earnings (HUF)

Blue collar

5 441

68 007

47 300

White collar

1 436

119 178

72 232

TOTAL

6 877

78 692

52 506

 

9.4. The Food Industry

The food industry of the county has been greatly differentiated by changes in the agriculture and demand for agricultural products.

The BAT Tobacco Factory Ltd and the PÉCS Brewery both produce only for the domestic market but are 100% owned by foreigners; they have quickly improved their technologies and increased output.

DÉLHÚS Plc, which has incorporated the slaughter house of Pécs as well, was acquired by an Austrian investor in the early 1990's. The company increase its market share  at the expense of its competitors, nevertheless it used only 50 % of its capacity. Due to unfavourable market trends, the Austrian owners withdrew from Hungary and the plant was closed down in 2000. Surplus capacity is also typical of mills and the dairy industry.

The Cannery of Szigetvár and the Poultry Processing Plant of Pécs have both lost their markets and have, therefore, been liquidated. Only 10% of their capacity can be hired out to small private businesses.

Within the food industry private bakeries have been the most successful.

The collapse of the market lead to a considerable decrease in the production of bottled wine and champagne.

The market of soft drinks is dominated by Coca-Cola and Pepsi-Cola.

Mc Donald’s, Pizza Hut and Kentucky Fried Chicken has opened outlets in Baranya county.

There are good business opportunities in the production of high quality specialities (like salami, cheese, dried fruits, wine, honey, herbs, etc.) especially if up-to-date technology is used.