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.
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| Boosting milk production |
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.
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| Join the winners |
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.
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.
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:
