Food Industry in Hungary 5
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FOOD INDUSTRY IN HUNGARY HUNGARY SMART. AMBITIOUS. COMPETITIVE. Food Industry in Hungary 5 FOOD INDUSTRY 4 CONTENT 6 ABOUT HUNGARY 14 FOOD INDUSTRY IN HUNGARY 26 LABOUR FORCE 32 LOCATION HUNGARIAN INVESTMENT Published by the Hungarian Investment 42 Promotion Agency, HIPA PROMOTION AGENCY (HIPA) All rights reserved © HIPA, 2018 www.hipa.hu Food Industry in Hungary 7 ABOUT HUNGARY MAIN FIGURES CURRENCY FORM OF GDP (PPS) GDP GROWTH GOVERNMENT FORINT EUR 192,855 4.0% PARLIAMENTARY (HUF) MILLION (2017, HCSO) REPUBLIC (2016, HCSO) AREA TIME ZONE 93,023 m2 GMT + 1 HOUR INFLATION 2.4% (2017, HCSO) HUNGARY OTHER MAJOR CITIES POPULATION POPULATION CAPITAL Debrecen (201,981) 9,797,561 BUDAPEST Szeged (161,137) POPULATION Miskolc (157,177) (2017, HCSO) 1,752,704 Pécs (144,675) (2017, HCSO) Győr (129,301) CLIMATE RISK OF NATURAL TEMPERATE DISASTERS (similar to the rest of VERY LOW the continental zone) MEMBERSHIP IN INTERNATIONAL ORGANISATIONS EU, UN, OECD, WTO, NATO, IMF, EC EU member since 2004 (Source: HCSO = Hungarian Central Statistical Office) Food Industry in Hungary 9 ABOUT HUNGARY FDI IN FOCUS ungary is an open economy where particu- lar emphasis is placed on encouraging foreign Hdirect investment (FDI). Partnership with potential investors is a national priority; special atten- tion is paid to the needs of companies already settled in Hungary, and to the further improvement of the business climate. YOU CAN 66% 62% 51% COUNT ON THE GOVERNMENT’S 40% 32% COMMITMENT Inward FDI stock amounted to 66% of the TO FURTHER GDP (2016) the highest IMPROVE THE ratio in the region. HUNGARY CZECH SLOVAKIA POLAND SLOVENIA Source: wiiw FDI Database BUSINESS CLIMATE REPUBLIC Food Industry in Hungary 11 ABOUT HUNGARY ...has modified its taxation and incentive BUSINESS ENVIRONMENT system related to R&D activities to make Hungary the innovation hub of CEE. ...offers companies a …is committed to strategic partnership, further reduce taxes and provides them on employment. with fast access to the Government. IN ORDER TO IMPROVE ...is helping THE BUSINESS CLIMATE companies to function THE HUNGARIAN reliably by providing a clear agenda on economic GOVERNMENT... development and FDI strategy. ...further improved INVESTMENTS IN FOCUS INVESTMENTS the practice-based dual education system built on industry needs. ...has created ...has introduced its ...has introduced a the most competitive unique economic new incentive scheme CIT in the EU development plan supporting with 9% flat rate. based on Industry 4.0 technology intensive requirements. investments. Food Industry in Hungary 13 HUNGARIAN EXPLORE THE COUNTRYSIDE ABOUT HUNGARY PARLIAMENT Hungary’s diverse countryside offers a wide QUALITY OF LIFE BUILDING ranked range of outdoor activities: 11,000 kilometres th of hiking routes; more than 4,000 kilometres of 10 cycle paths; 14 golf courses; 10 national parks; in world's top 10 and many protected nature reserves for those landmarks for 2018 in love with fresh air. The protected Puszta- by TripAdvisor region, the Great Plain, the romantic Danube Bend with its historic sites, and pretty baroque towns, such as Eger, attract visitors all over the year. Lake Balaton, the largest fresh water lake in Central Europe, is a perfect holiday resort. HUNGARY ranked among the TOP 5 COUNTRIES in the BOCUSE D'OR INTERNATIONAL SCHOOLS competition Expatriates looking to stick with the curricula in 2017 of their home countries can choose from a range of private international schools for their children. There are also many English, German or French public and private pre- schools for children aged from three to six. The school year starts in September and ends in June, and school buses are usually available at private schools. There are many opportunities to study in a foreign language at universities too. GASTRO STORY The dining scene in Budapest is livelier Did you know that… than ever, practically you can find the EXPATS LIKE HUNGARY …the kindergarten and the elementary cuisines of every culture in the capital, Budapest is a city full of surprises and school division of the International School of from high-end Michelin-star restaurants wonders, with its lively centre, pretty parks, Debrecen will start to operate in September to no-frill eateries, small bistros and majestic river, tall church spires, and lavish 2019 and its upper school education starts must-try food trucks. spas. One of the most exciting cities in the running from September 2020? world, Budapest is full of secrets, hidden spots to explore, and old favourites to revisit. This is the city where being bored is not an option. Food Industry in Hungary 15 FOOD INDUSTRY Johann Marihart IN HUNGARY CEO, AGRANA "AGRANA has substantial and successful affiliated companies in Hungary, since 1990 at Hungrana, since 1991 at the sugar factory Magyar Cukor in Kaposvar, and since 2002 at four apple juice concentrate 100% plants. All of our investments are characterized by considerable growth over the years. Due to the GMO-FREE strategic importance of this region AGRANA stood INGREDIENTS and stands clear to its investments in Hungary and does not intend to change that.” Keeping Hungarian agriculture GMO-free is a matter of extremely high strategic importance. The total abolition of the utilization of GMO in the country’s agriculture represents an ever-increasing competitive advantage for Hungary. The ban on GMO is laid down in the country’s Constitution and in the corresponding legislation. All parliamentary parties have worked together to for- mulate Hungary’s GMO-free strategy and the process of implementation aimed at its realisation in complete agreement. Food Industry in Hungary 17 FOOD INDUSTRY QUALITY INGREDIENTS HUNGARY IN HUNGARY ARE AVAILABLE ON is a major producer of A LARGE SCALE numerous agricultural products in Europe – GRAIN MAIZE AND CORN-COB-MIX (total production, thousand tons) especially compared 14,498 to the country’s size. 10,000 6 757 Among the 5000 3943 TOP3 crop producers 2450 2076 1700 1116 533 of the CEE region Source: EUROSTAT, 2017 0 POLAND CROATIA AUSTRIA ROMANIA SLOVAKIA BULGARIA HUNGARY CZECH REPUBLIC WHEAT AND SPELT (total production, thousand tons) SUNFLOWER SEED (total production, thousand tons) 11,568 3180 10,000 9785 3000 1 870 1860 5801 5 237 2000 5000 4649 1000 1831 1443 233 679 116 51 46 Eurostat, 2017 (As of Eurostat data available on 21 March 2018 / 31 January 2018) http://ec.europa.eu/eurostat/tgm/refreshTableAction.do?tab=table&plugin=1&pcode=tag00047&language=en 0 0 5 Source: EUROSTAT, 2017 CZECH CZECH POLAND POLAND CROATIA CROATIA AUSTRIA AUSTRIA ROMANIA ROMANIA REPUBLIC REPUBLIC SLOVAKIA SLOVAKIA BULGARIA BULGARIA HUNGARY HUNGARY Food Industry in Hungary 19 FOOD INDUSTRY he natural characteristics of the YOU CAN CARPATHIAN BASIN – climatic con- IN HUNGARY Tditions and soil – establish the large COUNT ON HIGH scale production of high quality raw materials QUALITY RAW for the food industry. MATERIALS FRUIT PRODUCTION (thousand tons) ALL GATHERED FRUITS (thousand tons) 2013 2014 2015 2016 1500 1040 Apple 592 780 511 497 850 Sour cherry 70 92 77 74 1000 778 755 Plum and greengage 48 45 46 48 Peach 44 39 37 40 500 Apricot 21 23 20 24 Watermelon* 190 219 196 185 Source: HCSO Honeydew melon* 22 12 16 20 2013 2014 2015 2016 VEGETABLE PRODUCTION (thousand tons) ALL GATHERED VEGETABLES (thousand tons) 2013 2014 2015 2016 2000 1626 Potato 478 567 452 429 1514 1601 Tomato 136 153 200 173 1441 Sweet pepper 77 84 116 137 1500 Green peas 68 88 95 111 Carrot 67 84 78 91 1000 Onion 60 62 60 62 Source: HCSO White cabbage 67 60 65 53 500 *Note that watermelon and honeydew melon are listed as vegetables in the statistical tablesnot of HCSO. counted Therefore in the „All they gathered are fruits” diagram, but the „All gathered in the „All vegetables” gathered counted it is not therefore HCSO of tables and vegetables the fruits diagram. from is excluded sugarbeet that **Note diagram. vegetables” nor in the „All gathered fruits” Sugarbeet** 991 1067 911 1121 2013 2014 2015 2016 Food Industry in Hungary 21 FOOD INDUSTRY IN HUNGARY he geographical fragmentation and wide range of climatic conditions within the country RAW COW MILK PRODUCTION (million liter) Tconstitute a source of diversity of production and establish a rich choice for processing. 1890 2000 1826 1868 1726 1500 1000 Source: HCSO 2013 2014 2015 2016 POULTRY STOCK (thousand pieces) 50,000 37,900 38,599 40,334 40,185 30,000 Source: HCSO 15,000 2013 2014 2015 2016 Food Industry in Hungary 23 FOOD INDUSTRY YOU CAN IN HUNGARY COUNT ON THE MOST RELEVANT SEGMENTS HUNGARIAN OF THE HUNGARIAN FOOD INDUSTRY FOOD INDUSTRY'S EXPERIENCE 1 2 3 4 5 6 meat mineral water, pet food milk sweets, snacks, fruit and processing soft drinks, and feed processing, convenience vegetable and alcoholic and production dairy and other foods processing and preserving other beverages products preserving DISTRIBUTION OF THE PRODUCTION VALUE OF FOREIGN AFFILIATES IN THE HUNGARIAN FOOD SECTOR BY CONTROLLING COUNTRY, 2015 the 2% UK* 3% 3% Other countries Belgium 3% Czech Republic* 22% Switzerland 7% Italy Regina Kuzmina Managing Director % 7 Unilever Hungary Ltd. Netherlands “The country’s superb geographical location, skilled 8% workforce and qualified professionals all contribute France to the prosperous operation of the Budapest HQ and % the three factories creating 1,550 workplaces. Our Source: Statistics, HCSO FATS Manufacture of food products and beverages 2015 * Please note that due to lack of available data on beverages sector in the UK and Czech Republic, the graph incorporates only the food segment for this two countries. 18 USA company considers Hungary to be one of its strategic production centres, and throughout the past 27 years, 9% we carried out significant investments in the country.” Germany 17% Austria Food Industry in Hungary 25 MAJOR Szikszó HELL ENERGY FOOD INDUSTRY COMPANIES Érsekvadkert Sátoraljaújhely AGRANA CONTINENTAL Kisvárda BY LOCATION MASTER GOOD IN THE MOST IMPORTANT BRANCHES Pilisvörösvár Dunakeszi SCITEC SZAMOS Gyál NUTRITION EISBERG Szerencs Vásárosnamény Budapest NESTLÉ AGRANA DREHER Jánossomorja RAUCH HAAS ZWACK Miskolc DR.