1. Dr. Györgyi Molnár – Péter Földi Hungarian Poultry Product Board 1

2. The presentation…. 1.Hungary in facts 2.Poultry Product Board 3.Egg production 2

3. 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 3

4. 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 Development and the authorities. 4

5. Structure of the PPB  Number of members in 2014: 1793  Six member associations: 5

6. Structure of the PPB – according to the activites 6

7. Egg production….. 7

8. Egg sector in Hungary breeding Grandparent/ parent stocks (hatching) production Grading/ packaging 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

9. Laying hens population 01. 12. 2013. thousand hens Breeding stocks* 3 100 backyard, seasonal 6 200 intensive 3 800 Total 13 100 *including broiler breeders

10. 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

11. Capacities of the egg production farms 11 591 farms6 020 259 hens Source: NFCSO, aug. 2012., PPB calculation

12. Proportion of the different production systems in Hungary (2012) Capacity: 6 million, farms: 561, hens in: 3,8 million 12 Source: NFCSO, aug. 2012., PPB calculation

13. Placement of laying chicks in Hungary (‘000) (2000-2013) Source: PPB, 2013 Placement of laying chicks (‘000 heads )

14. Table egg production in Hungary on intensive farms (In million eggs) (2000-2013) Source: PPB, 2013 Table egg (million pieces)

15. Egg consumption (egg/capita/year) (1980-2011 ) Source: CSO, 2013 Egg consumption (egg/cap./year)

16. Export – Import statistics of egg (tons) (2003-2012) Source: CSO, 2013 Export: Romania, Austria, Slovenia, Germany, Lithuana Import: Slovakia, Germany, Poland, Lithuana Volume (tons) Hungary became netto importer on table eggs Egg in shell export Egg in shell import Table egg export Table egg import Egg in shell import

17. Price change at feed and eggs (January 2010 = 100%) Source: Szöllösi, based on AKI PaIR and PPB data Change at feed price (%) Change at egg (M+L, cage system) (%)

18. 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

19.  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 Effects of the accession to the EU- III.

20. 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

21. Storm clouds….

22. 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

23. Investment demand in the whole poultry industry, 2014-2020 ProductionMillion EurBillion FTDevelopement goals Broiler-483145 Modernisation and building new stalls, development of technologies Turkey-18355 Development in the supply chain, product development Goose-11735Breeding, technology Duck-16750Technology Table egg10030 Increasing of hen population (targeting self sufficiency) Stall and technology development (partly in production and in packaging centre), Total1050315

24. 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)

25. Trademark on the poultry meat….

26. …and on the eggs! 26

27. 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 -

28. 28 Thank you very much for your attention! gyorgyi.molnar@magyarbaromfi.hu www.mbtt.hu

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