The General State of the Hungarian Baking Industry

Amongst the branches of the food processing sector the baking industry has the highest number of independent enterprises and the scale of plants shows the most colourful and diverse picture.

 

Enterprises in the baking industry:

 

1 In the European Union as well as in Hungary small businesses and minor or middle sized workshops are characteristic.

 

2 The number of enterprises in the Hungarian baking industry is decreasing:
In 1995 there were 1521 businesses, running a total of 1809 workshops,
In 2009 there were 1100 businesses running 1150 workshops.

 

3 Division of businesses according to employees:
4% employs a staff of over 100
6% with a staff of 20-100
20% employs 10-20 persons
70% employs less then 10 people

The capacity harness of bakeries is efficient, there is no substantial surplus
There are approximately 1900 high visibility bakeries in the country.

 

4 Division of production according to type of businesses:
20% family-type businesses
35% middle enterprises
45% major enterprises

 

Product structure of the baking industry:

Bread consumption: 76 kg/person/ year.

 

1 The structure of product scale:
Scale of products 150-160 different products..
17-18% farmhouse bread
20% other bread:
    - rye-bread (6%)
    - packed bread (4%)
63-65% white, semi-brown bread

Confectionery consumption: 13 kg/person/year.

 

2 The structure of confectionery selection:
The scale of confectionery products: approximately 450-480 types.
24% milk-contained products
52% water-base bread roll
24% other products

 

3 Sales
Bakery products are sold in 24 thousand sales points.
Division of sales:
7-8% public dining, catering trade, buffets
15-16% individual stores
20-23% food retail
55-56% multinational store-chains

The direction of changes in sales:
continuing concentration, expansion of multinational enterprises, globalization of food retail.

Development aims of the baking industry:
extending private store network and vehicle fleet, opening new sales channels, more active marketing, developing products with healthier ingredients

The gross production value of this branch of industry: 110 billion HUF.
Invested capitol 40 billion HUF.
Number of employees in the branch: approximately 24 thousand.
Wage level is 120 thousand HUF/person/month gross.

Employer organisations connected to the bakery branch:

- Federation of Hungarian Food Industries (ÉFOSZ),
www.efosz.hu; efosz@efosz.hu

- Hungarian Baker Association,
www.pekszovetseg.hu; pekszovetseg@t-online.hu

- Baking Industry Union,
www.sutoipariegyesules.hu;
info@sutoipariegyesules.hu

- Hungarian Association of Craftsmen’s Corporations (IPOSZ),
www.iposz.hu; titkarsag@iposz.hu

National Association of Entrepreneurs and Employers (VOSZ),
www.vosz.hu
- Hungarian Chamber of Commerce and Industry (MKIK).
www.mkik.hu; mkik@mkik.hu

Employee organisation connected to the bakery industry:
- Trade Union of Workers of the Bakery Industry (SDSZ)

Tradition cultivating organisations of the baking industry:
- First Hungarian White Table Knight’s Order,
- Hungarian Bakers’ Princely Order,
- MÉTE.

Educational institutions related to the baking industry:
- vocational schools,
− institutions of advanced education

Vocational co-organisation related to the baking industry:
- National Trade Corporation of the Hungarian Confectionery Industry

Hungarian Baker Association

The professional interests of businesses taking up 60-65% of the capacity of bakery enterprises.
The Association has 420 members are represented by the Hungarian Baker Association.
It works with a social board of 21 members, operating and organising in 9 regions.

The priorities regarding the operation of the Baker Association:

- lobby activity,
- extending and developing services,
- increasing the level of organisation,
- increasing the number of individual stores,
- developing products promoting healthier nutrition, improving marketing activity.

The relations of the Hungarian Baker Association

The relationships of the Hungarian Baker Association are diverse: primarily it is a member of  Commission for Arbitration of the Food Industry, as well as the co-chairman of the employer side of the Commission for Arbitration of the Baking Industry. It is institutionally represented in the Federation of Hungaran Food Insutries (ÉFOSZ), a membership that automatically secures a place in the Hungarian Association of Craftsmen’s Corporations (IPOSZ). Besides the Association is the member of IPOSZ and the Hungarian Chamber of Commerce and Industry. These organisations and public boards take place institutionally in the law preparation process that provides a limited opportunity to present the general opinion and vision of the profession as well as representing its interests.

International relations:
- Member of the European Union of  Bakers,
- Member of the International Union of   Bakers.

There is an emphasis on the relations with the heads of the Ministry of Agriculture and Rural Development, which is identical to the level of possible work relations between the Ministry and the rest of food processing communities.