Zoltan Szemerey

  • June 2020
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  • Words: 273
  • Pages: 7
RAPID CHANGE IN AGROBUSINESS NORMS AND PRACTICIES

Warsaw 2005 October 24-25 Zoltán Szemerey

TRANSITION PERIOD 1990-2005 • Private landownership largely reinstated with across Central Eastern Europe • Agricultural enterprises and food processors privatized mainly to management • Consolidation across agriculture and food industries hampered by government interventionism • Loss of traditional markets, fight for domestic markets

SITUATION BEFORE ACCESSION • Low cost, inefficient an extensive farming practices producing uneven quality • Cost pressure from retail chains heralds shake out for inefficient players • Food safety, quality standards raised but often compromised because political and economic considerations

EXPECTATION FROM EU ACCESSION • Market for surplus agricultural goods and food products • Introduction of CAP prices increase farm profitability • Structural programs improve infrastructure and provide funding for agro business investments

MAJOR CHANGES AFTER ACCESSION • Direct payments have significantly improved farmers profitability • Introduction of CAP prices contributed to crop farming profitability but adversely affected livestock production • Food processors under double pressure form retail chains and increasing feedstock prices • Transposition of EU standards, systems gives momentum to consolidation of farms and food processors.

CURRENT CHALLANGES • Satisfying consumer expectations with regard to quality standards and low prices all year round • Complying with EU norms and standards with regard to food safety, good agricultural practices • Coping with higher environmental protection standards

Opportunities • Shake out of uncompetitive farms and food processors help entrepreneurs who emphasize quality, costs and good environmental practices at the same time • Innovation in farming and processing technologies (no tilt, crop cooling,...) • Rural initiatives for smaller farms/companies/cooperatives and associations • New markets in non food sectors

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