The share of agriculture fell below 5 percentages of the GDP. Looking at the total production value the share of agricultural branches is expected to come out around 10 percent.
This year’s agricultural performance and within that the output of the food industry were fundamentally determined by economic policy, market opportunities and weather conditions. The efficiently of regulations is limited by the fact that budgetary resources fell short of the needs. The seemingly un-coordinated use of subsidies directed at the individual areas led to further tensions. Missed market opportunities were partly a result of real and unbridgeable difficulties (the Russian and the South Eastern European crises together with EU’s extremely demanding market), while the other part could rather be explained by internal problems (poor market structure and insufficient protection).
The land for crops decreased by 432 thousand hectares, i.e. by 15% compared to 1998. According to the survey conducted in May the sown area for wheat shrunk considerably: the existing 761 thousand hectares in merely 63.3 percent of the land available last year. The preliminary figures suggest that 2.7 million tons of wheat will be harvested, which covers domestic demand and allows for modest export. More fruit is produced than last year.
Cattle population remains unchanged, while the producer’s price for beef-cattle and milk moved slightly upward. Pig population grew by 10 percent and the price of pork is almost 30% below last year’s price.
The gross production volume in the food, spirits and tobacco sector was 3 to 5 percent behind last year’s figure. Among the specialized branches there is growth in meat processing, canning, poultry and milk processing and soft drink production. On the other hand decline is expected in milling products and sugar production, in fruit and vegetable processing and tobacco production. The pace and return value of investments are unlikely to match last year’s levels. –
