Thursday, August 23, 2012

6 reasons to start food processing in Eastern Hungary

Expanding on European market could mean a new food processing plant in the low-cost Central and Eastern Europe. Eastern Hungary's strong food cluster provides more benefit to start here.

Eastern Hungarian food processing cluster

#1: Save the long-distance food transport costs
It has relevant shipping costs of exporting processed dairy products to the European Union. If you spare long food miles, you not just save money, but also protect our environment. Plus, there are no legal barriers befor market entry inside the EU. The Eastern European food processing countries, like Poland and Hungary, have relevant food export to the western part of the EU, so its an existing model for businesses. Eastern Hungary has excellent transportation connections to Western Europe: the length of the Eastern Hungarian motorways reaches 600 kms (373 miles), it’s longer than the motorway system of entire Slovakia and almost two times longer than Romania has.

Boosting milk production
#2: Boosting raw material production, increasing efficiency
The Eastern Hungarian food processing cluster is based on one of the strongest agriculture in Eastern Europe. Raw material production and sales is the integral part of local economy. The agricultural production is not low-cost only, but its efficiency is also improving.
Join the winners
#3: Award winning location
Eastern Hungary is one of the most awarded Eastern European locations by Financial Times’ fDi Magazine: 2 regions and 2 cities of Eastern Hungary was ranked for the top doing business locations of Eastern Europe.

#4: Specialized business park offers
Eastern Hungary has 95 industrial parks, it’s more, than the number of industrial parks in Poland. The competing real estate market resulted specialized business parks, including food processing parks (e.g: Karcag Industrial Park).

#5: Large labour supply
The number of unemployed people in Eastern Hungary is more, than 300,000, more than 60% of total unemployment in Hungary. Big numbers of blue/white collar workers are available, and strong governmental re-training programmes provide company-specific knowledge for them. The food business is one of the target sectors of government`s job creation strategy.

#6: Governmental incentives are focusing on Eastern Hungary
The goal of governmental incentives is to orient foreign direct investments into underdeveloped regions with high unemployment. Eastern Hungary is among the most intensively (potentially 50%) subsidized regions of the EU. So, when you think about to invest in Eastern Hungary, prepare for a pleasant surprise.

European perspectives
Food trade is free inside the EU common market, however Common Agriculture Policy (CAP) of EU has a fundamental impact on member state's agriculture. The following short video helps in the better understanding of presence and future of CAP:


  1. Hi! Am excited at the potential for food processing in Hungary. My son lives in Budapest (since 1996) and we have been thinking of starting a food processing operation on a small scale. I am a Food Technologist/Engineer with 51 years experience, several patents, and I have worked in various food industries. If interested can we take this further? Regards. Vivek Kilpadi

    1. Hi Vivek,

      sure! Were you son kind to send me an e-mail?
      we should continue it privatly.


  2. Amazing article starting a food process in Eastern Hungary. I would like to have more information on this. It's sounds interesting. Looking forward to hearing more on food processing and how can a small scale can start.
    Beverage-Manufacturing Market Analysis

    1. Ross,

      send me please an email to, and we will countinue personally.

      chief editor, FoodSites Blog

  3. Food processing equipment & supplies are a conversion process takes place for producing processed food from raw food ingredients. This can be processed with the help of food processing machines or equipments which are available in different varieties

  4. I have heard a thousand times that processed foods are bad for you. Now that I have kids, I have been wondering what I should and shouldn't feed my children. I didn't know that so many thing were considered "processed". I don't know how you could avoid all of those foods, I think that it would be impossible.