Introduction to a discussion about the future of Hungarian sugar industry
1994
Kovacs, A.
The privatization will affect the owners of the sugar factories, the employees (2-3000 people), the sugar beet growers (8-10 000 people), and indirectly every Hungarian citizen. It is difficult to see clearly the sugar market. Market information is scarce and not quite reliable since a sizable black market exists. Still, the size of the domestic sugar market is estimated to be slightly more than 400 000 tons. The world market price and domestic production costs of sugar indicate that profitable export is out of question but a steady and calm local market can be expected. In the future consumer demand is probably going to decrease by 40-50 thousand tons but it is presumed that the growing demand of the canning and soft drink industry will make up for this loss. Bigger problem is that growers seem to have lost interest in producing sugar beet. Some possible reasons for this may be the liquidation of cooperatives, the lack of capital, the obsolete machinery, and the exceptionally hostile weather of the past two years. The following measures could be taken to alleviate this situation: Sugar factories should help growers to improve the technology. A long term irrigation development program should be implemented. It would be desirable if about 25 of the sugar factories' stock was in the growers property
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