György Raskó: Farmers decimated
Life is bitter for tens of thousands of Hungarian fruit-farmers and horticulturalists who find themselves competing with Dutch, Italian and Spanish paprika, tomatoes, strawberries, melons and peaches available in the shops for half the price long before their seasons begin in Hungary.
The situation is little better for livestock farmers. The Central Statistical Office’s data for April confirm a fifteen year-old trend. Pig stocks are now below four million, 40% of the pre-1989 level. Full EU membership has failed to stop the beef cattle stock from declining – indeed, cattle stocks are now dwindling even faster.
Irrationally, the EU supports grain producers to the hilt, whilst leaving the livestock farmers who use that grain to fend for themselves. EU farmers, including the Hungarians, can grow wheat and maize with a sense of security unparalleled in the world, because the EU’s intervention price of EUR101.30 per tonne is far higher than the normal world price and there is no purchasing ceiling.
By next spring there could be 6-8m tonnes of surplus in Hungarian grain stores, which could be stored for years until the time comes for it to be destroyed. EU regulations on environmental protection and animal welfare in livestock farms will come into force in 2006 in Hungary, since of all the new members, only we, Hungarians lacked the foresight to ask to postpone their implementation. Furthermore, a new WTO agreement soon to come into force will forbid export support and grant further customs discounts to produce including Brasilian poultry, New Zealand butter and North African and South American vegetables, fruit and wine, alongside other produce that is grown or raised in Hungary.
Competition will become increasingly fierce, with EU membership decimating Hungarian producers. A drastic fall in their numbers will leave only those standing who have the knowledge and capital to turn their farms into competitive enterprises.