Photo: Róbert Hegedüs
Mariann Őry
31/03/2025 16:47
Why was Hungary’s Eastern Opening necessary in agriculture?
During the era of the Council for Mutual Economic Assistance (CMEA), we developed close cooperation with the Russian region. However, after the regime change, these ties were severed, and everyone wanted to sell and succeed in the West. But we soon realized that there were strong competitors there. The volume we used to sell in the former Soviet territories was crucial for the entire Hungarian agricultural sector. The decline, privatization, and closure of the processing and canning industries led to the loss of these markets. Western companies wanted Hungary to be a raw material producer—exporting raw materials to their factories, processing them abroad, and then re-importing finished food products. We must stop this process. All our investments and subsidies now aim to rebuild the Hungarian food and processing industries to make them competitive again. Given the constraints, we assessed our strengths and sought new market opportunities. The Eastern Opening has indeed brought new prospects for us.
What opportunities would you highlight?
In seed production and breeding stock, Eastern Europe and Central Asia have experienced a wake-up call in recent years. Many had fallen in love with Dutch breeding stock and genetics, wanting to cultivate or breed them in their own regions. However, they soon realized that Dutch livestock had higher acclimatization and comfort requirements than what their regions could provide. By contrast, Hungarian breeding stock—such as the Hungarian Simmental cattle or the Hungarian laying hen—boast outstanding genetic traits and exceptional adaptability. As a result, trust in Hungarian products has grown in Eastern markets, opening numerous new business opportunities. In seed production, the Russian and Kazakh markets hold great potential, while in breeding stock, southern markets like Türkiye are particularly promising. Moreover, these countries are no longer just looking for raw materials—they are increasingly interested in processed products and comprehensive technological solutions to develop their own processing industries.
Which countries have the closest agricultural ties with Hungary?
We have traditionally strong relationships with Türkiye, Uzbekistan, Kyrgyzstan, Kazakhstan, and, of course, Russia. New opportunities continue to emerge—for example, in Vietnam, large poultry farms have been established under Hungarian ownership. Among premium markets, Japan stands out. After honey, we are now working to get Mangalica pork products approved there. China, as Asia's economic powerhouse, presents a major challenge—here, we are fighting a David-and-Goliath battle. Due to the distance and high volume expectations, only premium products are worth exporting, such as top-quality red wines, Tokaji Aszú, foie gras, and other Hungarian specialties. We are also experimenting with winter salami, adapting it to Chinese tastes, which has already generated demand. In horse breeding, cooperation is strengthening: the Hungarian Nonius breed is so highly valued that there was an attempt to purchase the entire stock for the next twenty years. These are key areas we must closely monitor.
What strategy should be used to target the massive Asian markets?
We need to focus on the premium segment, catering to niche demands. First, transportation costs due to the long distance naturally drive up prices. Second, we cannot supply a multi-billion-person country with mass-market products. Limited supply increases value, making products like Hungarian foie gras and Tokaji Aszú even more desirable.
Hungarian companies, such as Bábolna TETRA in poultry breeding, have achieved significant success in Asia. What is their secret?
Trust capital. Bábolna TETRA has consistently demonstrated outstanding genetic potential, and they are known as reliable business partners—an essential trait in the East. If a Hungarian company builds sufficient trust capital, it opens doors for others as well.
What personal experiences have you gained from your trips to Asia?
It’s fascinating—when you travel west, you always feel like a guest. But when you go east, it feels like coming home. The difference in friendship and human connections is immense, something you can’t fully grasp unless you experience it. There is a strong sense of kinship rooted in our history. The sincerity of people—whether politicians or business leaders—is incredibly refreshing. Friendships deepen through informal conversations over meals, and agreements made in such settings are honored. That’s why I always take a delegation of businesspeople with me. Politics must create a climate of trust and friendship that allows business partners to forge relationships beneficial to both countries. I see that those who take the leap succeed, despite the initial challenges.
How do trends such as economic blocs impact agriculture, and how can we maintain our commitment to connectivity?
The Common Agricultural Policy is one of the oldest joint policies in the EU. The 27 member states have diverse geographical conditions, but ensuring food security for 450 million people is paramount. Until the Ukraine war, this system functioned well. However, the uncontrolled influx of Ukrainian agricultural products has devastated European farmers, highlighting the dangers of relying on a single direction. While more than 800 million people globally suffer from hunger, our responsibility is to cultivate land sustainably and secure food supplies—while ensuring farmers’ livelihoods. That’s why we must continuously explore new markets for Hungarian products, safeguarding both profitability and agricultural sustainability.
What is the European Union’s approach to this issue?
It’s contradictory. While the EU supports economic bloc formation—imposing tariffs on Chinese industrial goods and blocking Russian energy—it simultaneously pushes for total free trade in agriculture. The EU wants to force free trade agreements, like Mercosur, which would undermine the internal market. I believe this is misguided policy. Our fundamental interest is for European farmers to supply European consumers while adhering to the highest food safety standards. We owe it to European farmers to protect their market access. We must support connectivity by seeking alternative sales channels. Hungary produces two and a half times more food than it consumes domestically, so we must export. The uncontrolled influx of Ukrainian products hits us hardest as the closest neighbor—dumped here first, at prices 40–60% lower than local goods. Ukraine’s production conditions differ vastly from EU standards, making fair competition impossible.
How can we compete?
Our goal remains to target premium markets. That’s why we export lamb to Italy and Türkiye and dairy products to Arab countries. I am particularly proud of our seed and poultry sectors. When Ukrainian wheat competes with Hungarian wheat, we lose. But when Ukrainian wheat competes with Hungarian flour or pasta, we win. Our challenge is to add more value to our products, achieving higher levels of processing, and ensuring Hungarian products reach even the farthest corners of Asia with a strong market presence.
The author is the deputy editor-in-chief of Eurasia.