Hungary Has Introduced The Required Measures To Stabilise Food Prices
- 9 Oct 2013 9:00 AM
The United Nations' Food and Agriculture Organisation's Committee for World Food Security (CFS) is holding a session in Rome, Italy, on 7-11 October 2013, within the framework of which it has organised a ministerial roundtable on the relationships between international food prices, food price fluctuations and food security.
The Ministry of Rural Development's Minister of State for Public Administration Géza Poprády, who is heading the Hungarian delegation, stressed the timeliness of the issue and its Hungarian aspects.
The Minister of State emphasised that increases in feed and food prices over the past fifty years and the social and economic damage caused by price fluctuations justified a detailed examination of the issue. Several forums have included the topic on their agendas and have determined the main causes of food price fluctuations, including speculation, the use of biofuels and changes in food stocks. These forums have also established an agricultural market information database to help find global solutions to these problems. Mr. Poprády stressed that local solutions are, however, also needed.
Last years' drought led to a seed shortage and an increased in feed and food prices in Hungary. For this reason, the Ministry of Rural Development developed a package of measures within the framework of which it launched a restructuring programme aimed at avoiding a decrease in animal stocks. Processed animal products have a higher added value and so provide increased income to farmers, thus decreasing their vulnerability to speculation.
Local distribution may also limit the excessive and unreasonable increase in food prices by shortening food chains. For this reason, Hungary encourages the establishment of farmers' markets so that farmers can get their products to consumers with the need for middlemen.
The handling of the social issues related to increased food prices is also an important task for Hungary, Géza Poprády said. Food prices in Hungary increased by more than the rate of inflation in 2012. To curb the increase in food prices, the Ministry of Rural Development is developing legislation to reduce the VAT on poultry and pork and so reduce consumer prices.
As a result of the quick reaction to increasing prices, the macroeconomic indices related to Hungary's agro-market did not fall in 2012 and satisfactory results are forecast for 2013.
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