The competitiveness and future perspectives of Hungarian meat sector

Abstract

The Hungarian meat processing industry plays an important role in satisfying domestic demand and in Hungarian foreign trade. Based on stable former COMECON export, considerable state subsidies and a safe position on the home market, the meat industry developed rapidly before 1990. The rapid collapse of COMECON, the decline of domestic purchasing power and import liberalisation have created a new situation. The paper analyses the chances and possibilities of the application of economic policy conforming to the market for upgrading the competitiveness of the Hungarian meat processing sector. Using Porter's approach of competitiveness, the utilisation of primary resources (agro-ecological potential, capital and labour), market structure, company strategies, the domestic food market and the role of other sectors connected with the meat industry are all analysed as elements of competitiveness. The paper emphasises that some of the fundamental conditions for increasing competitiveness are more expedient exploitation of the possibilities deriving from the present comparative advantages, the stimulation of competition between the participants in the meat industry, the building up of the domestic food market and the development of other fields connected to the meat industry, with special emphasis on material and financial infrastructure as well as on collective marketing activity.