1. The Role of Horticulture in Strengthening Hungarian Agriculture Miklós Kis Vice President Hungarian Chamber of Agriculture, Food and Rural Development Amsterdam, 13.03.2014

2. Value ratios in agriculture animals 27% other 2% horticulture 20% animal products 14% industrial plants 9% feed 2% cereals 26% 1500 billion HUF other 3% grape-wine 22% ornamentals 13% vegetable-fruit 62% 300 billion HUF

3. Sectors of horticulture Vegetable-fruit-mushroom (170 thousand hectares, 200 billion HUF) Grape-wine (70 thousand hectares, 60 billion HUF) Ornamental plant (2 thousand hectares, 30 billion HUF) Medicinal plant (18 thousand hectares, 10 billion HUF)

4. The features of horticulture 300 billion HUF of primary production value High cost requirement and value creation 1000 billion HUF of commodity value Subsistence for 300 thousand families

5. Our conditions Favourable ecological conditions Nearby markets International consumption trends

6. Vegetable production in the EU 2.8 % Source: FAOSTAT EU27 member states altogether: 64 million tons together with melons! Italy Spain Romania Germany Greece Portugal United Kingdom Hungary Belgium Netherlands France Poland thousand tons

7. Fruit production in the EU 3.7 % Source: FAOSTAT 2.4 % EU27 member states altogether: 24+13 million tons without melons! Italy Germany Greece Romania Hungary Austria Belgium Netherlands France Spain Poland Portugal United Kingdom thousand tons FruitTropical fruit

8. Average yields in the EU (tons/hectare) Source: FAOSTAT vegetables fruits Netherlands Slovenia Czech Republic Bulgaria Lithuania Germany Malta Romania Latvia Sweden Slovakia Finland Poland Italy Estonia France Hungary United Kingdom Belgium Austria Spain Luxembourg Cyprus Greece Portugal Denmark Ireland Belgium Slovakia Lithuania Latvia Romania Greece Sweden Portugal Bulgaria Finland Estonia Spain France Hungary Luxembourg Cyprus Malta Czech Republic Austria Ireland Germany United Kingdom Italy Denmark Slovenia Poland Netherlands

9. Features of the vegetable-fruit-mushroom sector vegetable-fruit-mushroom sector 200 billion HUF of primary production value 50% export-oriented 600 billion HUF of commodity value Subsistence for 150 thousand families

10. Our production of and foreign trade in fruits and vegetables thousand tons fruitsvegetables

11. Value of our foreign trade in fruits and vegetables million HUF

12. Data of buying up fruits and vegetables for processing industry purposes thousand tons million HUF Other (1000 t) Refrigeration (1000 t) Canning (1000 t) Refrigeration (M HUF) Other (M HUF)Canning (M HUF)

13. Change in the number and turnover of producer organisations in Hungary Number of recognised POs Total fruit-vegetable value (bn HUF) Planned turnover of POs Total number of POs Turnover of POs Billion HUF Piece

14. Strategy and future prospects Expansion of domestic and foreign markets Goal: to achieve production of 3.5 million tons 100 thousand new jobs, rural employment Increasing the share of POs in turnover to 40% Expertise, product and regional development

15. Development plans in 2014-2020 Mushroom production (doubling of compost production and production output, champignon, oyster, shiitake) The result of the development: Compost production increases from 150 to 300 thousand tons, 100 new heat treatment furnaces, 25 thousand tons of new products and new production value of 20 billion HUF per year are produced. The programme requires development support of 18 billion HUF altogether. Greenhouse production (building of a thousand hectares of new greenhouses, extending the supply of fresh market products, green pepper, tomato, lettuces, melon, strawberry, etc.) The result of the development: Greenhouse area increases from 2600 to 3600 hectares, 200 thousand tons of new products and new production value of 45 billion HUF per year are produced. The programme requires development support of 45.5 billion HUF altogether.

16. Development plans in 2014-2020 Fruit production (increasing the rate of intensive and modern plantations from 1/3 to 2/3, making water-saving irrigation systems general, ice and frost protection, special automation of fruit production) The result of the development: The area of modern plantations increases from 26 to 52 thousand hectares, 400 thousand tons of new products and new production value of 50 billion HUF per year are produced. The programme requires development support of 60 billion HUF altogether. Outdoor vegetable growing (increasing yields and quality, strengthening production integrations and making irrigation general) The result of the development: 400 thousand tons of new products and new production value of 15 billion HUF per year are produced. The programme requires development support of 30 billion HUF altogether.

17. Development plans in 2014-2020 Processing industry (modernisation of processing technology, expansion of the product range and supporting the processing industry developments of the POs) The result of the development: 250 thousand tons of new products and new production value of 60 billion HUF per year are produced. The programme requires development support of 50 billion HUF altogether. Development of handling and automation (increasing yields and quality, strengthening production integrations and making irrigation general) The result of the development: 400 thousand tons of new products and new production value of 15 billion HUF per year are produced, Employment of 10 thousand people. The programme requires development support of 30 billion HUF altogether.

18. Summary of the development plans Fields of development Total costs of supported developments Required support New commodity supply and commodity value produced yearly as a result of the development thousand tonsbillion HUF 1. Greenhouse production90 bn HUF45 bn HUF200*45 2. Mushroom production36 bn HUF18 bn HUF 25* (+150 compost) 20 3. Fruit production120 bn HUF60 bn HUF400*50 4. Outdoor vegetable growing60 bn HUF30 bn HUF400*15 5. Processing industry100 bn HUF50 bn HUF25060 6. Handling and automation60 bn HUF30 bn HUF-See dev. 1 to 4 Total:465 bn HUF232.5 bn HUF1.025*180 bn HUF SectorCurrent productionResult of developmentTotal Vegetables grown on land1300 k tons400 k tons1700 k tons Forced vegetables380 k tons200 k tons580 k tons Cultivated mushroom25 k tons 50 k tons Vegetables total1705 k tons625 k tons2330 k tons Fruits800 k tons400 k tons1200 k tons Fruits and vegetables total 2505 k tons1025 k tons3530 k tons 200 bn HUF180 bn HUF380 bn HUF

19. Government measures taken so far for the developments Promoting casual employment National melon programme Solving thermal energy recovery Expansion of irrigation facilities Support for horticultural machinery Fruit and vegetable strategy Successful negotiations with the EU, ensuring development funds Promoting local sales Promotion of Hungarian products

21. Thank you for your attention!