The Délalföldi Kertészek Szövetkezete (Délkertész) reports that Hungarian vegetables on store shelves have not yet returned to pre-2019 levels. Imported vegetables, particularly from North Africa, continue to pressure the market, despite Hungarian capabilities during the domestic season and a smaller environmental impact.
Price sensitivity remains an issue, with Hungarian growers facing higher costs due to EU regulations, leading to an increase in imported goods. Consumers often choose cheaper options, particularly following the energy crisis. Délkertész represents 500 producers in Szentes, about 150 km southeast of Budapest, known for producing peppers, tomatoes, cucumbers, and cabbage.
At a recent press conference, Ferenc Apáti of FruitVeB and Délkertész emphasized the need for a higher share of Hungarian produce in stores. Sándor Nagypéter, president of Délkertész, states: "The goal during the season would be around 80%. Right now, both in Hungary and Central and Eastern Europe, import pressure is extremely strong."
Nagypéter highlights challenges, saying: "Even after the start of the domestic season... peppers from the North African region are widely available in shops." He notes the difficulty in competing under differing regulations, adding that EU producers face stricter sustainability and quality processes compared to North African countries.
Hungarian growers also contend with a 27% VAT on vegetables, unlike the 5-10% in neighboring countries. Délkertész is investing in sustainability and innovative greenhouse technology in Szentes, using renewable energy and biological crop protection. Climate change impacts necessitate ventilation and cooling measures, contributing to production costs.
Délkertész recently opened a HUF 3 billion logistics center with cold storage and launched an online platform and store in Szentes to meet rising consumer demand for direct sales.
Source: Budapest Business Journal