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Consequences Of The Two Record Years Of Cereal Intervention In Hungary

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  • Rieger, Laszlo
  • Szoke, Gyula

Abstract

In this paper, problems connected to the adaptation of EU cereal intervention in Hungary are discussed. Statistical evidence is provided about the two record years of intervention in Hungary proving that farmers did not take part in intervention though the system was sought to be tailored to farmers' needs. Intervention purchases took place at the wholesale level and traders were the most active participants in both intervention periods. This dynamic intervention activity of traders will significantly alter the Hungarian trade sector by bringing it closer to the physical processes of the cereal chain. As to the size of intervention, the great volume of the purchase of maize has resulted in an exceptionally severe problem considering the large surplus of Hungarian cereals. Recently, the Commission hampered maize intervention in Hungary by excluding this crop from cereals eligible for intervention. This measure is criticised in the paper, as we deem it unnecessary in recent market conditions, and in our view it doesn't make up the compulsory need for a complex reconsideration of recent EU cereal policy on the long term.

Suggested Citation

  • Rieger, Laszlo & Szoke, Gyula, 2007. "Consequences Of The Two Record Years Of Cereal Intervention In Hungary," 104th Seminar, September 5-8, 2007, Budapest, Hungary 8516, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa104:8516
    DOI: 10.22004/ag.econ.8516
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    Keywords

    Agricultural and Food Policy;

    Statistics

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