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HUNGARY TRADE VISIT
JUNE 5-10, 2016
J. Stobbs (Marketbase), 71 avenue Bosquet, 75007 Paris, FRANCE Tel. + 33 (0) 1 45 51 36 03 / Fax + 33 (0) 1 47 53 72 85 Email: [email protected]
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Table of Contents
page
Trip Summary 3 Market Summary 5 US Exports of Dry Beans to Hungary 7 Hungary Import Statistics (Global Trade Atlas) 8 FAS Contact Information in Hungary 10 Hungary Country Profile 11 Market Overview and Macroeconomic Situation 12 Agriculture in the Economy 12 Food Processing Sector 32 Retail Food Sector 13 Hungarian Hypermarkets 14 Trade Meetings, June 6-10 Ambrus Export Import 15 Hungarian Flavours 17 PA-Comp 18 Bonduelle Central Europe 20 Teller 24 Molnar 25 Other Meetings FAS Budapest 21 Hungarian Ministry of Agriculture 22 Store Visits Auchan & Tesco hypermarkets 16 Medi Line Organic Wholesale Outlet 23 Recommendations 26
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Trip Summary: Title: USDBC Hungary Trade Visit Start Date: June 5, 2016 End Date: June 10, 2016 Countries: Hungary Location: Budapest (Hungary) USDBC Representative: Johanna Stobbs Itinerary: June 5: Paris to Budapest, Air France # 1494 June 10: Budapest to Paris: Air France # 1495 Accommodation: Hotel Parlament, Kalman Imre utca 19, 1054 Budapest. Tel. + 36 1 374 6000, Fax +36 1 373 0843, Email: [email protected] Website: www.parlament-hotel.hu Objectives:
To conduct research in order to examine market conditions and to identify export opportunities for US dry beans.
To meet with those importers, dry packagers and canners who have indicated an interest in US dry beans through contact with Johanna Stobbs, the USDBC’s representative for Eastern Europe.
Results: Although a relatively small market, US dry bean exports to Hungary totaled 3,000 MT in 2015, giving the US a 39% market share (source: Global Trade Atlas/Eurostat). This is largely due to the fact that the leading canning company in Hungary, Bonduelle, uses exclusively US dark red kidney beans. A total of 6 one-on-one meetings took place during the 5-day trip period, all of which were onsite at the offices of the companies visited. This entailed a heavy travel schedule driving to 5 towns outside of Budapest: Osszekoto (Hungarian Flavours), Ujfeherto (PA-Comp), Nagykoros (Bonduelle), Felsőpakony (Teller) and Pasca (Molnar).
All of the companies visited were importers/dry packagers, with the exception of Bonduelle, an international canning company. On each occasion Stobbs met with the Managing Director or the CEO and presented the new USDBC dry bean poster, which gives an overview of the various classes of dry beans that the US has to offer, as well as US dry bean supplier contact information on the reverse side. She also distributed "International Year of Pulses" cloth bags, which were very much appreciated. On June 8, Stobbs had a meeting with Kelly Stange, US Agricultural Attaché, based in FAS/Berlin, and Gellert Golya, US Agricultural Specialist, based in FAS/Budapest. The purpose of the meeting was to present information regarding the USDBC and to discuss the Trade Visit and possible further FAS activities in Hungary.
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On June 9, Stobbs had a meeting at the Hungarian Ministry of Agriculture, with the head of the Research, Development and Innovation section. This was to discuss trends in Hungarian agriculture, the effect of climate change, and the development of Hungarian-grown dry beans. N.B. Stobbs was assisted throughout the Trade Visit by Daniel Szollosi-Nagy, Managing Director of KD Consulting, a Hungarian PR and communications agency that was recommended by FAS/Budapest. Mr. Szollosi-Nagy provided translation, logistical help and ground transportation. His services were excellent.
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HUNGARY Market Summary: Hungary The USDBC last conducted a Trade Visit to Hungary in June 2012. However, during the past four years, the Hungarian market has undergone significant changes. Market Notes:
Hungary is a small country (35,000 sq. miles), but strategically placed with borders with Austria, Croatia, Romania, Serbia, Slovakia, Slovenia and Ukraine. Many companies that deal in dry legumes are located in cities that are far from Budapest, making Trade Visits a challenge in terms of the time and expense involved in in-country travel.
Hungary, a member of the European Union since 2004, has emerged from the economic crisis of 2008.
Dry beans enter Hungary with no import tariffs because Hungary is a member of the European Union.
This is a price-sensitive market, looking for low-cost dry beans more than quality, at least in the dry packaged sector.
The Hungarian food distribution system has changed during the last decade, as hypermarkets, supermarkets, smaller neighborhood supermarkets and hard discount stores have become predominant.
One of the principal financial constraints in the Hungarian food sector is the fact that retail chains tend to delay payment to their suppliers (up to 90 days), which causes cash-flow problems for importers, dry packagers and canners.
Hungarian VAT (value-added tax) on food products is a hefty 27%. Unscrupulous companies avoid paying this tax, enabling them to sell dry beans at a lower cost than tax-paying companies.
Some of the major retail chains in Hungary include Tesco (British), Interspar (Austrian), Auchan (French), Lidl and Aldi (German hard-discount stores) and Coop and CBA (Hungarian).
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Product normally travels to Hungary via the port of Hamburg or Bremerhaven (Germany) or Koper (Slovenia) and is then trucked or sent by rail to Budapest.
Two French-international canning companies have invested in Hungary. Bonduelle has three canning facilities. The first is situated in the town of Nagykoros (about 50 miles from Budapest). This plant uses dry beans. Bonduelle’s second facility, Békéscsaba (formerly owned by the Globus Group) concentrates on fresh vegetables. Bonduelle’s third facility, Kelet-Food, is located in Nyiregyhaza, north-east of Budapest. Kelet-Food has a canning capacity of 25,000 MT-30,000 MT per year and focuses on fresh vegetables. To give an idea of the size of Bonduelle internationally, the company has 42 factories in 18 countries, employing some 10,000 people. Its turnover is estimated at $1.8 billion and its products are distributed in 80 countries. The second major canning company in Hungary is Globus. In 2006, the French-international group, D’Aucy Cecab, acquired a Globus canning facility in Debrecen (95 miles from Budapest). This canning factory now trades under the name of Deko Food and markets the Globus brand. The D'Aucy Cecab group has 30 production sites in France, Spain and Hungary, working in five major divisions, including canned vegetables, frozen vegetables, meats and eggs. The group's turnover is estimated at $1.1 billion.
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US Exports of Dry Beans to Hungary Hungary is a difficult, price-sensitive market for US dry beans.
The Hungarian market is principally looking for dark red kidney beans and navy beans, and has now started substituting cranberry-type beans with pinto beans. There is also demand for Great Northern beans and garbanzos.
Many Hungarian companies rely on contacts in the Netherlands and place dry bean orders through Dutch brokers.
Like many countries in Eastern Europe, Hungary has long relied on Ethiopian navy beans, as well as Chinese light speckled beans. However, the market is now aware that Ethiopian prices are not the bargain that they once were and Chinese production is in gradual decline, with the result that Chinese prices have risen to high levels. This means that Hungarian companies are now hoping to have better and more frequent communication with US suppliers and would like to receive samples and quotes.
As in many European countries, the demand for organic dry beans is on the rise. However, organic pulses are seen more as a guarantee that the product is non-GMO, rather than a concern about pesticide use. Hungary is firmly non-GMO.
Product normally travels to Hungary via the port of Hamburg or Bremerhaven (Germany) or Koper (Slovenia) and is then trucked or sent by rail to Budapest.
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Hungary Import Statistics
Commodity: 071333, Kidney Beans, Including White Pea Beans (Phaseolus vulgaris), Dried Shelled, Including Seed
Calendar Year: 2013 - 2015
Partner Country Unit
Quantity % Share % Change
2013 2014 2015 2013 2014 2015 2015/2014
World T 6227 6815 7801 100.00 100.00 100.00 14.47
United States T 1545 2099 3043 24.82 30.80 39.01 44.97
China T 939 1305 1905 15.08 19.16 24.42 45.94
France T 746 751 616 11.97 11.02 7.89 - 18.04
Canada T 529 397 569 8.49 5.82 7.29 43.40
Czech Republic T 413 470 427 6.63 6.90 5.48 - 9.07
Ethiopia T 809 847 368 12.99 12.43 4.72 - 56.55
Argentina T 0 65 179 0.00 0.96 2.29 174.65
Italy T 319 70 133 5.12 1.03 1.70 89.05
Netherlands T 380 619 125 6.11 9.09 1.61 - 79.77
Bulgaria T 0 8 118 0.00 0.12 1.51 1375.00
Slovakia T 165 12 113 2.65 0.17 1.44 862.39
Egypt T 299 49 72 4.80 0.72 0.92 46.94
Chile T 19 12 48 0.31 0.17 0.62 306.78
Tanzania T 14 12 39 0.23 0.17 0.50 229.41
Poland T 1 35 24 0.01 0.51 0.31 - 30.64
New Zealand T 0 0 13 0.00 0.00 0.16 0.00
Turkey T 3 4 4 0.04 0.06 0.05 5.26
Serbia T 0 2 3 0.00 0.02 0.04 100.00
Germany T 1 12 2 0.01 0.17 0.02 - 84.62
Israel T 0 0 0 0.00 0.00 0.00 0.00
Thailand T 0 0 0 0.00 0.00 0.00 0.00
Kenya T 0 46 0 0.00 0.68 0.00 - 100.00
Romania T 2 0 0 0.02 0.00 0.00 - 100.00
Russia T 21 0 0 0.34 0.00 0.00 0.00
Croatia T 24 0 0 0.39 0.00 0.00 0.00
Source: Global Trade Atlas
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The US has a 39% market share in Hungary largely due to the use of US dark red kidney beans in the canning industry. Navy beans and pinto beans are also entering the market now, with small amounts of Great Northern beans.
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FAS Contact Information in Hungary Foreign Agricultural Service, Budapest American Embassy Szabadsag Ter 7 1054 Budapest Hungary Tel.: + 36 1 475 4162 Fax: + 36 1 475 4676 Email:[email protected] Contacts: Kelly Stange, US Agricultural Attaché (based in Berlin); [email protected] Dr. Gellert Golya, US Agricultural Specialist (based in Budapest); [email protected]
The Hungarian Parliament building in Budapest.
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HUNGARY Country profile:
Population: 10 million
Capital City: Budapest (population 1.7 million)
GDP: $120.6 billion (2015 estimate)
GDP per capita: $26,200 (2015 estimate)
Population below the poverty line: 14.9%
Unemployment rate: 6.8%
Agriculture: 4.4% of economic activity
Agricultural products: wheat, corn, sunflower seeds, potatoes, sugar beets, pigs, cattle, poultry, dairy products
Imports from: Germany (26%), Austria (7%), Russia (7%), China (6%), Slovakia (6%), Poland (5%), France (5%), Czech Republic (5%), Italy (5%), Netherlands (4%)
Exports to: Germany (29%), Austria (6%), Romania (6%), Slovakia (5%), Italy (5%), France (5%), Poland (4%), Czech Republic (4%)
Currency: Hungarian Forint - HUF (280 Forints to the US $) A Little Hungarian History Hungary became a Christian kingdom in 1000 AD and for many centuries served as a bulwark against Ottoman Turkish expansion in Europe. The kingdom eventually became part of the Austro-Hungarian Empire, which collapsed during World War I. The country fell under communist rule following World War II. In 1956, a revolt and an announced withdrawal from the Warsaw Pact were met with a massive military intervention by the Soviet Union. Under the leadership of Janos Kadar in 1968, Hungary began liberalizing its economy, introducing so-called "Goulash Communism." Hungary held its first multiparty elections in 1990 and initiated a free market economy. It joined NATO in 1999 and the EU five years later. In 2011, Hungary assumed the six-month rotating presidency of the EU for the first time.
Source: CIA Factbook
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Market Overview The Hungarian food distribution system has changed in the last decade as hypermarkets and large shopping centers have come to dominate the market and Hungarian consumers are becoming more quality and health-conscious. International food processing companies and food retailers increasingly purchase non-EU commodities through centralized import divisions or from European distributors. Macroeconomic Situation Hungary's economic output grew by an annual 2.3% in the third quarter of 2015, slowing from 2.7% in the previous quarter. The Central Statistical Office (CSO) attributed the slower pace to the declining performance of agriculture. Services, on the other hand, contributed more to growth. Annual GDP growth has slowed for the fifth consecutive quarter after peaking at an unadjusted 4.1% and a seasonally- and calendar-adjusted 4.0% in the second quarter of 2014. The pace has been down since last year when Hungary's GDP grew by 3.6%, according to unadjusted figures. The government, commenting on the data, said the main reason for the deceleration in growth was weaker agricultural output due to the summer drought in 2015. However, the slower growth was "no surprise" because Hungary's convergence plan had forecast a 2.5% growth rate in GDP, adding that the government was planning a number of policy measures to boost growth. According to the updated EC forecast for Hungary, GDP growth will likely be 2.9% in 2015, before slowing down to 2.2% in 2016 and 2.5% in 2017. The OECD forecast increased the expected GDP growth figure for 2016 from 2.2% to 2.4%, but left the 2015 figure at 3%. The OECD sees 3% GDP growth in 2017. Growth figures are heavily influenced by Hungary’s absorption of EU funds, which helped propel investment growth to 11.2% in 2014 but which may lead to temporarily negative figures in 2016. From 2017, funds from the current programming period of EU funding will start to positively affect investment again. Agriculture in the Economy Hungary’s weather and soil make it an excellent place to farm. Arable land and permanent crops account for 4.58 million hectares (ha), of which 210,000 ha are irrigated. Pastures account for 0.76 million ha and forests for 1.94 million ha. Major crops include wheat (1.1 million ha), corn (1.2 million ha) and sunflower and rapeseed (0.73 million ha). The country has a long tradition in horticulture and in producing planting seeds. Animal production includes 3.13 million pigs and poultry flocks of 45 million. The number of cattle of all types is about 820,000. In 2014 total agricultural output increased by 3.6% and crop production volume increased by 12%. Export performance was nearly the same as that of the previous year. In 2014, agriculture contributed 5% to GDP and the food industry accounted for about 2% of domestic production.
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Compared to the record-breaking year of 2014 agricultural output remained subdued in 2015 negatively, affected by the extremely hot and dry weather in the vegetation period. Agricultural volume of gross added value decreased by 16.8%. Apart from this, trends indicate a structural strengthening in domestic agriculture. The foreign trade structure of agricultural and food products seems relatively stable in Hungary. Most of the exported commodities are grains and grain products, meat and meat products, vegetables and fruits, animal feed, animal and vegetable oils, fats and waxes. The main import sectors belong to similar commodity groups. In the international trade of foods and agricultural products, Germany, Austria, France, Italy, the Netherlands, Poland, Czech Republic and Slovakia were the most important partners of Hungary. Non-EU trading partners included China, the United States, Ukraine, and Serbia in the plant-product dominated markets. The Food Processing Sector Hungary is self-sufficient in basic foods. Production potential is 120% of current needs and could be increased to about 150%. The vast majority of food processing (approximately 96%) is micro, small or medium-sized enterprises. However, more than 70% of the total value of production comes from large companies that are an integral part of the European food industry. Most large processing plants belong to foreign companies that have developed networks and trade partnerships in the EU, and advanced technologies. At the same time, small and medium-sized enterprises are characterized by a lack of working capital and low production efficiency. 70% of foods produced in Hungary are sold in Hungary. Hungary is net a food exporter, although the volume of imports is growing and the proportion of processed foods in exports is declining. Hungary’s largest export market is Germany. Retail Food Sector The marketing and demand for healthy eating options is growing in Hungary, influencing production in agriculture and food products. The most prominent companies in the food sector have joined an initiative of the Association of Food Processors, and have made more than 70 voluntary commitments to promote good nutrition. Salt, calorie and fat content reduction, and the promotion of active lifestyles through responsible advertising, were among their commitments. The market share of supermarkets and discount stores with a surface of 401-2,500 m2 is 39% in the retail food sector, while that of stores with more than 2,500 m2 was 27%. The retail food business in Hungary has about 18,000 commercial units, of which about 15,600 are traditional small businesses. The share of retail food sales of small businesses is 26% (18 % for shops with 51-200 m2, 8% for units smaller than 50 m2). Source: Exporter Guide 2015, FAS Budapest, GAIN REPORT 2015 HU15004
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Hypermarkets in Hungary
Name Stores Ownership
Auchan 19 French
Interspar 32 Austrian
Tesco 119 British
Location of stores
Auchan: Interspar: Tesco:
Budakalász Budapest 6 Abony
Budapest 3 Debrecen Ajka
Budaörs Diósd Baja
Csömör Dunaújváros Balassagyarmat
Debrecen Gyula Balatonboglár
Dunakeszi Győr 2 Balatonfüred
Fót Hódmezővásárhely Békéscsaba
Kecskemét Keszthely Berettyóújfalu
Maglód Miskolc Bicske
Miskolc 2 Nagykanizsa Budakeszi
Solymár Nyíregyháza 2 Budapest 13
Szeged Ózd Budaörs
Székesfehérvár Pápa Cegléd
Szigetszentmiklós Pécs 2 Csorna
Szolnok Sopron Dabas
Törökbálint Szekszárd Debrecen (2 extra)
Szentendre Dombóvár
Szolnok Dunaharaszti
Szombathely Dunakeszi
Székesfehérvár 2 Dunakeszi-Fót
Tatabánya Dunaújváros
Veszprém Eger
Zalaegerszeg + 98 other locations
Source: FAS/Budapest N.B. Clearly, Tesco is the strongest player in Hungary in the hypermarket segment. All 119 stores locations are not listed here.
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Trade Visit Meetings - Hungary - June 6-10, 2016 Monday, June 6 Ambrus Export Import Kft. Torokbalinti ut 11/a H-1121 Budapest Hungary Tel.: + 36 1 249 3092 Fax: + 36 1 249 3091 Cell: +36 30 949 2787 Email: [email protected] Website: www.ambrusexport.hu Contact: Mr. Szabolcs Ambrus Ambrus is a family-owned import-export business founded in 1990 and located in Budapest. It has an annual turnover of around $7 million.
Its main imported products include dry beans, lentils, dry peas, rice, sesame seeds, raisins, poppy seeds and caraway seeds.
Ambrus’ principal product is rice. The company imports some 3,000 MT per year from Greece and Italy. Ambrus sells to smaller-sized dry packaging companies in Hungary, as well as to canning companies, such as Bonduelle and Globus, when they are caught short of dry beans and need a rapid delivery. However, the main focus of Ambrus is now on the HRI sector (hotels, restaurants and institutions), which Hungarians call the "Gastro market".
Ambrus Company Buying Profile
Product Buying from
Split yellow peas Ukraine
Laird lentils Canada
Now interested in
Navy beans USA
Pinto beans USA
Richlea Lentils USA
Szabolcs Ambrus of Ambrus Export Import Kft.
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Monday, June 6 Store visit to see two hypermarkets: Auchan and Tesco in the Budaors suburb of Budapest.
Although packaged dry beans are found in supermarkets and hypermarkets in Hungary, the canning sector dominates the segment. Paco and Teller are the two leading dry packaging brands, while Bonduelle and Globus hold the canning market Navy beans tend to be Ethiopian, while dark red kidney beans are either Chinese or from the USA. Cranberry-type borlotti canned beans from Italy are also present. Pinto beans from the US are making inroads into the market
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Monday, June 6 Hungarian Flavours Kft. Osszekoto u.1 1173 Budapest Hungary Tel.: + 36 1 951 4383 Cell: + 36 682 5488 Cell: +36 20 956 7960 Email: [email protected] Email: [email protected] Website: www.hungarianflavours.com Contact: Ivan Safar Contact: Peter Makranczy Hungarian Flavours is an up-market import-export company specializing in fruit juices, vegetable oils and dry legumes, including a full range of dry beans. The company, with an annual turnover of around $2 million, does own-label dry packaging for the Coop (the Termeszet Aldasa brand) and Real supermarkets and is also active in the wholesale sector and warehousing. As well as importing dry legumes, the company exports product to Romania, Serbia and Ukraine.
Hungarian Flavours Company Buying Profile
Product Buying from
Navy beans Ethiopia
Dark red kidney beans China
Cranberry beans Canada
Laird lentils Canada
Spilt yellow peas Ukraine
Now interested in
Dark red kidney beans USA
Pinto beans USA
Light red kidney beans USA
Organic dry beans USA
Peter Makranczy and Ivan Safar of Hungarian
Flavours Kft.
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Tuesday, June 7 PA-Comp Co Ltd. Szent Istvan str. 144 4244 Ujfeherto Hungary Tel.: + 36 42 290 177 Fax: + 36 42 290 681 Cell: + 36 300 239 8686 Email: [email protected] Email: [email protected] Website: www.pa-comp.hu Contact: Mr. Levente Papp Contact: Mr. Krisztian Papp PA-Comp is a family business, founded in 1993. It began as an import-dry packaging company specializing in borlotti beans (Italian cranberry beans) and yellow split peas. Today, the company processes 10,000 MT per year of product. Its ranges now include extruded corn-based snacks and ingredients and fillings for the baking industry (poppy seeds, coconuts and raisins). PA-Comp is ISO9001-certified and has won numerous food quality awards. It is considered the N° 1 dry packaging company in Hungary. Its main competitor in dry packaged pulses is Teller. The company has its PACO brand in all of the national retail food chains, including the leading Hungarian chain, CBA. PA-Comp is now taking 1,500 MT of pinto beans and will continue to purchase pintos, which are working well in the market as a substitute for light speckled kidney beans from China (Chinese beans are now considered too expensive.)
Krisztian Sandor Papp, Sales Manager, and Levente Dezso Papp, Managing Director, PA-
Comp.
Sales brochure from PACO. The baseline in Hungarian reads: "Everything is good and everything that is good is PACO!"
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PA-COMP Company Buying Profile
Product Buying from
Pinto beans USA & Canada
Laird lentils Canada
Dark red kidney beans China, Myanmar, Canada
Navy beans Ethiopia
Great Northern beans Canada
Garbanzo beans Hungary
Spilt yellow peas Czech Republic
Now interested in
Pinto beans USA
Dark red kidney beans USA
Light red kidney beans USA
Navy beans USA
Organic dry beans USA
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Wednesday, June 8 Bonduelle Central Europe Kft. Cegledi ut 25 2750 Nagykoros Hungary Tel.: + 36 53 554 300 Fax: + 36 53 352 963 Cell: + 36 30 667 2268 Email: [email protected] Website: www.bonduelle.hu Contact: Ms. Ilona Szucs Purchasing Manager Bonduelle Central Europe (Hungary) has three facilities. Békéscsaba and Kelet-Food focus on fresh vegetables, including fresh green peas, while Nagykoros handles canned and frozen dry beans, garbanzos and lentils. Product is procured locally through the Nagykoros operation, as well as through Bonduelle’s buying office in Canada, via its central purchasing system. Ilona Szucs, the Bonduelle Central Europe Purchasing Manager, discussed the principal products that she handles, including locally-grown fresh green peas, Chinese lentils and Mexican garbanzos. Bonduelle Hungary uses US dark red kidney beans exclusively. Some Great-Northern-type beans, grown locally, are also used, as well as Italian borlotti beans. Discussions centered on Bonduelle's need for garbanzo beans and the current lack of this product in all of the producing countries (Mexico, Turkey, and the US). Ms. Szucs is also interested in trying US pinto beans as a substitute for expensive borlotti beans.
Bonduelle Company Buying Profile
Product Buying from
Dark red kidney beans USA
Borlotti beans Italy
Garbanzo beans Mexico
Green peas Hungary
Great Northern-type beans Hungary
Now interested in
Pinto beans USA
Ilona Szucs, Purchasing Manager, Bonduelle Central Europe
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Wednesday, June 8 Meeting with FAS/Budapest A meeting took place on the afternoon of June 8 between Johanna Stobbs, USDBC representative for Hungary, and Kelly Stange (US Agricultural Attaché, FAS/Berlin), and Gellert Golya (US Agricultural Specialist, FAS/Budapest). Although Ms. Stange is based in Berlin, she is responsible for FAS activities in Hungary as part of the region that she covers (Germany, Austria, Slovenia and the Czech Republic). By chance, Ms. Stange was in Budapest at the same time as Stobbs. Stobbs thanked Ms. Stange and Dr. Golya for the help and support that she has received from FAS/Budapest. Discussions focused on the USDBC's goals in Hungary, which are to increase and improve communication between US dry bean suppliers and potential Hungarian buyers. The USDBC's Trade Visit program for June 6-10 was also reviewed and Stobbs reported on the results achieved during the trip so far. Dr. Golya talked about the fact that Hungary will now start to produce non-GMO soy beans, which may shift domestic agricultural production in that direction. The role of Ukraine as an agricultural powerhouse and a potential threat to US exports was also discussed.
Dr. Gellert Golya, US Agricultural Specialist,
FAS/Budapest.
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Thursday, June 9 Meeting at the Hungarian Ministry of Agriculture On June 9, Stobbs met with three officials from the Hungarian Ministry of Agriculture: Mr. Kristof Akos, Head of Research, Development & Innovation Dr. Katalin Bokan, GMO & Biodiversity Expert Ms. Judit Ijgyarto, Public Relations Department This was a courtesy visit to introduce the US Dry Bean Council to the Hungarian Ministry of Agriculture and to discuss trends in Hungarian agricultural production. The three officials present were interested in knowing more about US commodity groups and how they operate. Dr. Bokan was pleased to learn that the US does not produce GMO dry beans. Other subjects covered included the increase in US dry bean exports to Hungary and their use, primarily in the canning sector. Stobbs discussed her travel schedule and explained how important one-on-one meetings are to improve communication between US suppliers and Hungarian buyers. This was a very pleasant meeting which will help solidify relations between the USDBC and Hungarian agricultural officials. Ms. Ijgyarto subsequently sent Stobbs the following statistics which show Hungarian dry bean production to be very low. 2014 was an exceptionally good year for all agricultural production in Hungary because of very favorable weather conditions, as opposed to the drought conditions suffered in 2015.
Hungary total harvested production (MT)
2009 2010 2011 2012 2013 2014
Dry beans 937 545 1247 1061 908 1527
Chickpeas 10 4 6 9 36 90
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Thursday, June 9 Visit to the Medi Line organic wholesale outlet.
In many European countries the demand for organic foods is growing. Hungary is no exception. This outstanding organic food outlet in Budapest, called Medi Line, purports to offer complete ranges of organic foods, including dry beans. The trade believes that consumers are looking for organic foods to ensure that the product is non-GMO. Dry beans are also, of course, gluten-free,
another important buying factor.
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Thursday, June 9 Teller Kft. Raktarbazis (06/25) 4 epulet Felsopakony Hungary Tel.: + 36 29 517 230 Fax: + 36 29 517 232 Cell: + 36 30 944 1299 Email: [email protected] Website: www.teller.hu Contact: Mr. Antal Teller Contact: Dr. Karoly Uza Email: [email protected] Teller is a wholesale and dry packaging company, founded in 1990. In addition to fruits and vegetables, Teller deals in dry beans, lentils, and yellow split peas. The Teller brand of packaged dry legumes can be found in all of the major retail chains in Hungary, including Tesco, Auchan, Coop and CBA. It is considered the N° 2 dry packaging company in the Hungarian retail market. Run by two brothers, the wholesale side is handled by Peter Teller, while Antal Teller deals with retail dry packaging and purchasing. Teller has cooperated with MAG Kft. for more than 25 years. Dr. Uza, the MAG CEO, acts on behalf of Teller, either as a principal or as a broker. US dry bean offers should go through Dr. Uza. The meeting focused on the fact that the Hungarian pulse market is very price-sensitive, especially for the dry packaged sector. The canning industry is growing, which puts pressure on dry packagers. Late payment from supermarket chains exacerbates the problem. Teller prefers to receive product by rail from the German port of Bremerhaven to its packaging and warehouse facility in Felsopakony. The company is currently interested in US pinto beans, cranberry beans, garbanzo beans, dark red kidney beans and Great Northern beans and will welcome offers.
Teller Company Buying Profile
Interested in US
Pinto beans Cranberry beans Garbanzo beans
Dark red kidney beans Great Northern beans
Dr. Karoly Uza of MAG Kft. and Antal Teller of Teller Kft.
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Friday, June 10 Molnar Csany L. str. 42 H-8761 Pacsa Hungary Tel. + 36 30 993 4111 Email: [email protected] Email: [email protected] Website: www.pacsaimalom.com Contact: Tamas Molnar Contcat: Nora Molnar Molnar is principally an importer for the wholesale sector, dealing in poppy seeds, grains, nuts and dry legumes, including a whole range of dry beans, lentils and split peas. With an annual turnover of over $6 million, the company’s main business is in exporting Hungarian poppy seeds (2,000 MT per year) to Europe for the baking industry. It has its own milling facility for poppy seeds. Molnar is looking for US dry bean offers, CIF to Hamburg or Bremerhaven.
Molnar Company Buying Profile
Product Buying from
Light speckled beans China
Pinto beans Canada
Cranberry beans Canada
Navy beans Ethiopia, China, Canada
Now interested in
Pinto beans USA
Light red kidney beans USA
Navy beans USA
Tamas and Nora Molnar
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Recommendations There is no getting around the fact that Hungary is a price-sensitive market, but it is also one that is developing rapidly and is on its way to being a potentially lucrative customer for US dry beans. The key to increasing US exports of dry beans to Hungary will be to improve communication between US suppliers and Hungarian buyers. Newsletters concerning US production and dry bean classes are helpful, but one-on-one meetings are essential in doing business in this market that counts heavily on personal contacts to seal the deal. Many of the Hungarian dry bean importers, packagers and canners seen during this Trade Visit will be attending SIAL 2016. It is hoped that commercial ties can be improved and strengthened during this important trade show, which is taking place in Paris (October 16-20, 2016) during the International Year of Pulses.
Marketbase June 23, 2016
![Hungary [2l]](https://img.pdfslide.us/doc/110x75/5583e360d8b42aaa5a8b4cf4/hungary-2l.jpg)
