The Significance of the Hungarian Maize Production in Relation to the Common Agricultural Policy

Abstract

Maize is one of the major crops of Hungary. This can be used in various ways, most notably for human consumption, feeding purpose, and ethanol production that is used as a fuel additive. The major indicator of its market competitiveness is the maize yield which varied over the years. This was mostly caused by the weather conditions. The use of more resistant maize varieties, as well as the proper amount of fertilizer (especially nitrogen and potassium as active ingredients), would help to stabilize yields. On the sales side, the price determines the efficiency of production. The Common Agricultural Policy plays a key role in this regard as direct payments contributed to the gross revenue of the crop producers by 57.2% on average in Hungary. The article aims to provide a detailed overview of these issues from 2010 to 2020. Based on our results, we formulated policy recommendations. Regarding maize trade, processing and, therefore, a higher share of value-added products would be essential (canned products, gluten, corn germ oil, gluten) on the export side. This would further increase Hungary’s agri-food trade surplus as well as create new jobs in this sector. However, the exceptional (roughly 47%) price increase in 2021 may not be motivating enough for the different market players in the supply chain.