Deep Roots

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business, to encourage investments, to facilitate knowledge

transfer and to ease the transfer of farms and early retirement

of the previous generation.

Diversification of activities is a key factor in managing

the sustainability of family farms and in stabilizing their

economic value. Complexity of agriculture, dependence on

environmental conditions and changing economic circum-

stances put pressure on farmers, which can be managed

more flexibly by diversifying agricultural activities and

performing non-agricultural activities as well. In addition,

differences in qualifications and age lead to different priori-

ties among family members, which can also enrich their

business through various on-farm activities. These may

include the development of infrastructure for agrotourism

and providing leisure or recreational activities; producing

handicrafts; preserving folk architecture; performing non-

agricultural activities such as biogas production; economic

diversification by crop diversification, animal husbandry and

the development of processing facilities.

Young farmers contribute greatly to the diversification of

family farms through new ideas, products, farming methods

and other opportunities. The current development of markets

contributes to the spread of organic farming, which is often

introduced by young farmers as a main or complementary

activity. However, diversification is often introduced because

of economic pressure and financial restraints of farmers.

This often encourages them to use their own labour force

for activities which generate higher incomes, such as engag-

ing in organic farming.

Promotion and development of organic farming is included

in the existing Hungarian National Rural Development

Strategy. Currently about 2,000 organic farms operate in

Hungary on 135,000 hectares, contributing 2.5 per cent

of total agricultural production. The development of this

sector can be supported on the demand side by strength-

ening consumer confidence and awareness-raising about

healthy diets, and on the supply side by encouraging farmers

to convert to ecological or organic farming. This is realized

among other things through the revision of rules and regula-

tions in harmony with EU legislation, through incentives to

increase production volume, processing and sale, through

the development of extension services, and by initiating

awareness-raising campaigns and promotion programmes.

As the general health condition of the population shows

unfavourable tendencies, raising awareness about healthy

diet is essential. Consuming healthy food is especially

important for those groups which face greater health risks,

such as children and elderly people. A new programme

has been launched with great success with the aim to

reverse these trends. The Catering Model Scheme focuses

on healthy catering for the most vulnerable age groups

in schools and nursery schools, hospitals and retire-

ment homes. The programme gives preference to locally

produced food, and some introduce organic products as

well. The recent amendment of the law on public procure-

ment, as well as the regulation of smallholders, has made

it possible for local products to get into the public catering

system. By supplying the public catering sector with local

products a stable market is provided for rural farmers. This

improves local employment and local economic develop-

ment, and can even reduce environmental pollution by

shortening of delivery distances. One of the aims of the

Catering Model Scheme is to increase the proportion of

local and organic food to 30 per cent in school catering.

The scheme aims to substitute convenient solutions with

labour-intensive meals prepared with good quality ingre-

dients. This would give a boost to public employment

programmes, especially targeting women.

National and European quality systems and geographical

indications are widely used in Hungary to protect special

agricultural areas, traditional specialities and production

methods. This protection is especially favourable to family

farmers. In general these quality schemes are beneficial

for producers as they set higher prices for certified prod-

ucts, and they are also beneficial for consumers because of

the high quality and certified content of these products.

Certifying products also enables family farmers to enter

premium markets abroad, which may ensure long-term

profitability for them and an opportunity to grow. Two

national initiatives started by the Ministry of Agriculture of

Hungary are operating in market conditions on a voluntary

basis and have proven particularly successful. The ‘Excellent

Hungarian Food Product’ label increases consumer aware-

ness about high-quality food products in Hungary and

abroad. Between 1998 and 2002 about 450 products were

certified and labelled. The Traditions-Flavours-Regions

programme follows a double goal: enlarging the collection

of traditional and regional products in Hungary as well

as providing technical assistance and economic advice

for their producers. With research and development new

technologies can be developed, which enable farmers to

produce traditional products with the possible application

of new production methods.

Another effective measure in favour of family farmers

is the agricultural advisory system, which was launched

in 2007. The programme has been developed in compli-

ance with EU regulations. Local Advisory Centres are

spread out geographically to cover the country’s whole

territory, ensuring that advisory services remain easily

accessible to farmers. These centres provide agricultural

training and consultancy services, such as the prepara-

tion of professional documentation for tenders and aid

applications, fertilizer provision and plant protection

planning, assistance in financial management and sharing

good agricultural practices. The Chamber of Agriculture

of Hungary maintains a network of 670 advisers servicing

about 200 customer orientation centres, providing general

information on agricultural policies and aid programmes

to agricultural producers including family farmers. The

consultancy is free of charge for the farmers.

The measures and policies presented above showcase the

complex efforts of Hungary to strengthen family farmers

and enable them to increase their share in agricultural

production; and in particular their contribution to the

country’s food and nutrition security. These initiatives have

been proven successful in Hungary, and some ideas and

practices might be applicable in other countries if adapted

to their specific needs and circumstances.

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