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Family farming and short food supply chains in Hungary
1. Family farming and
short food supply chains in Hungary
Katalin Kujani Ph.D
expert
Anikó Hetyei
expert
Department for Agriculture
28th October 2015
2. Regulatory background
v Regulations
• Act
No.
CXXII/2013
on
agricultural
and
forestry
land
turnover.
• Act
No.
CXXII/2013
These two laws contain the following definitions:
o Family farming,
o Family farmer,
o Member of
family farm.
• Government Decree
326/2001
on
the
establishment,
listing,
operation
and
special
subsidies
of
family
farms.
The
County
Government
Office
is
the
registering
agricultural
office
which
register
a
family
farm
if
it
satisfies
the
following
conditions:
o the
members
of
the
family
farm conclude
an
agreement
in
writing
and
set
forth
their
assets
and
their
accounting relationship,
o agree
to
transfer
the
land
and
necessary
means
for
cultivation
owned
or used
by
the
family
members
at
least
for
five
years.
v Special taxation (őstermelő)– special
administration
category,
app.
licensed
traditional
small-‐scale
producer:
a
non-‐entrepreneur
private
farmer,
who
conducts
activities
listed
in
the
relevant
law
on
his/her
own
farm
and
holds
a
registered
licence for
the
activity.
2
4. Number of registered family farms
4
-‐
1,000
2,000
3,000
4,000
5,000
6,000
Bács-‐Kiskun
Baranya
Békés
Borsod-‐Abaúj-‐Zemplén
Csongrád
Fejér
Győr-‐Moson-‐Sopron
Hajdú-‐Bihar
Heves
Jász-‐Nagykun-‐Szolnok
Komárom-‐Esztergom
Nógrád
Pest
Somogy
Szabolcs-‐Szatmár-‐Bereg
Tolna
Vas
Veszprém
Zala
A családi gazdaságok és a hozzátartozó tagok számának megyénkénti
alakulása 2013. és 2015. évek között
(Forrás: NÉBIH )
Családi
gazdaságok
száma
(db)
2013.
szeptember
16.
Családi
gazdaságban
tevékenykedő
tagok
száma
(fő)
2013.
szeptember
16.
Családi
gazdaságok
száma
(db)
2015.
szeptember
17.
Családi
gazdaságban
tevékenykedő
tagok
száma
(fő)
2015.
szeptember
17.
N
of
FF
September
2013
Members of
FF
September 2013
N
of
FF
September 2015
Members of
FF
September 2015
Social issues
Tradition?
Counties
Forrás:
NÉBiH
5. 5
Cultivated land
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
Total area of cultivated land by family farms by counties
Total:
1
374
00
hectares
Average:
70
ha/
farm
Counties
Forrás:
NÉBiH,
AKI
DEFINITIONS TOTAL RATIO(%)
Agricultural
purpose
lands,
hectare 2
420
054 100,0
Categories
<
1,00 84
471,0 3,5
1,00
– 49,99 1
074
355,0 44,4
50,00
≤ 1
261
228,0 52,1
6. 6
Major land uses
EGYÉB 0%
ERDŐ 4%
FÁSÍTOTT TERÜLET 0%
GYÜMÖLCSÖS 2%
HALASTÓ 0%
KERT 0%
KIVETT TERÜLET 0%
LEGELŐ
3%
NÁDAS
0%
RÉT 1%
RÉT-LEGELŐ 8%
SZÁNTÓ 81%
SZŐLŐ 1%
Land use by family farms
Forrás: NÉBIH 2015.
Cropland
Grape
Forest
Wooded area
Orchard
Pasture
7. 7
Scope of activities
25%
68%
3%
3%
1%
Activities of the members
(Forrás: NÉBIH felmérés, 2015.)
Állattenyésztés (25 %)
Növénytermesztés (68 %)
Virágtermesztés (3 %)
Erdőgazdálkodás (3 %)
Bortermelés (1 %)
Animal husbandry (25%)
Crop production (68%)
Flower production (3%)
Forest management (3 %)
Wine production (1%)
8. 8
Diversification as a value
v Labor-intensive cultures
v Handicraft
v Food process, local products
v Tourism and gastronomy
9. Review of Hungarian family farming regulations
• The whole regulation of family farming is currently under review in Hungary that
extends to
– tax policy,
– land policy,
– civil law and
– support policy.
• The main aim is to strengthen small farmers/family farmers that may contribute to
increase their negotiating power: more weight in contract negotiations, ensuring fair
terms and conditions, gaining access to public and larger scale markets.
• Possible tools:
– Detailed and precise data base
– Specialised supports
– Diversification
9
11. What is Short Food Supply Chains (SFSCs)?
• Generating increased policy interest, entrepreneurial activity
and civil society engagement over recent years.
• Potential to improve farm incomes, promote sustainable
farming systems and contribute to local economic
development.
• Common characteristic: reduced numbers of intermediaries
between the farmer or food producer, and the consumer.
Short supply chain’ means a supply chain involving a limited number of economic
operators, committed to co-operation, local economic development, and close
geographical and social relations between producers, processors and consumers.
12. Direct sale Methods of individual sale
methods
Sale at farms (farmer shop)
Sale on local market
Roadside sale
Mobil shop (van)
Home delivery service
Sale to a permanent group of regular customers
Internet
Pick your own
Installed food machines
Collective sale Shop (common) operated by cooperates or non-
profit association
Common association production, processing and/or
marketing and /or common sale
Short-term
sale methods
Sale to retailers in region Food retailers
Regional business chain
Bio shops
Bio department store
Retailers’ sale of healthy food
Shops selling meal/food specialties
Discounts
Sale to kitchens in region Restaurants
School canteen
Workplace canteen
13. Internal challenges of the modern food supply chain: Special
area, SME suppliers
• Problems:
– They do not have a definite marketing approach,
practice or marketing strategy
– They are not able to supply in sufficient quantities
– Transport problems
– Lack of capital
• Chances:
– Niche markets – no universal production
– Special products
– Regional supply
14. ECOSYAL
PROJEKT
Objective:
Through
a
project
group,
build
an
initiative
to
support
territories
and
stakeholders
in
the
territory, for
better
understanding
and
development
of
local
agrifood systems.
17. Sub-trees
DIAGSYAL tree structure: mapped data
Territory Geographical reading
Socio-demographic reading
Agricultural activity
Agri-food activity
Distribution activity
Farms
Product Distribution
methods
SYAL project
sheets
(RETEX)
Consumption
trends of the
territory
Territory
Geographical reading
Socio-demographic reading
Reading of agricultural activity
Reading of agrifood activity
Reading of distribution activity and consumption trends
19. Layer
3:
Reading
of
agricultural
activity
of
the
territory
Sales
in
local
distribution
channels
Identify
and
locate
places
of
sale
of
products
intended
for
local
distribution
channels
Results: more layer and cartographie for understanding local
development
Layer 5 (level 2): Reading of the distribution activity and of consumption trends
Coxinel
project in
Haut-
Languedoc
20. Suggestions:
Direct selling development plan
Questions:
•Harmonization of local and private
development plans
•Consumers would like to buy from local
producers but they need confort
•After wine-makers who can produce other
type of food?
Opportunities:
•„Open farms program” – collaboration to
build s local network
•Tourism and gastronomy development
•Common brand building.
22. Lessons to learn
• The main factor of succes is to understand and accept changes!
• The land, tools, labor are important but even the capital,
market collaborations, innovation and knowledge will
determine the future of family farms.
• Best practices, active civil sector and bottom-up approach are
neccessary.
• For modernisation we need capital and first of all knowledge-
transfer to be sustainable.
