HUNGARY: ESTIMATES OF SUPPORT TO AGRICULTURE

Contact person: Dimitris Diakosavvasl

Email: Dimitris.Diakosavvas@oecd.org

Tel :

(33-1) 45 24 95 33

Fax :

(33-1) 44 30 61 02

 

DEFINITIONS AND SOURCES

Country Total Support Estimate (TSE) and derived indicators in Table 1 cover all agricultural production, i.e. all agricultural commodities produced in the country. Definitions of basic data sets refer to the specific name of the programmes with specific sources indicated in square brackets. For the Producer Support Estimates (PSE) and Consumer Support Estimates (CSE), the description of policy measures indicates the commodities covered by the measures, as well as the method of allocation of the corresponding transfers among commodities. "MPS commodities", which vary across countries, are those for which market price support is explicitly calculated in Table 2.

Market Price Support (MPS) and Consumer Support Estimates (CSE) by commodity in Table 2 are calculated for the following commodities: wheat, maize, barley, sunflower, sugar, milk, beef and veal, pig meat, sheep meat, poultry meat, eggs and potatoes. Definitions are provided only for basic data sets from which all the other data sets in this table are derived, following the formula indicated in each commodity table. Specific sources are indicated in square brackets.

Producer Support Estimates (PSE) by commodity in Table 3 are calculated only for commodities produced in the country within a common set of commodities (wheat, maize, barley, oats, rice, sorghum, soybeans, sunflower, rapeseed, sugar, milk, beef and veal, pig meat, poultry meat, sheep meat, wool, and eggs), provided that the value of production of that commodity exceeds 1% of the total value of production in the country concerned. All data sets in the calculation of PSE by commodity come from Tables 1 and 2 where definitions are included.

Definitions of the indicators, criteria of classification of programmes included, and methods of calculation can be seen in OECD, Methodology for the measurement of support and use in policy evaluation [http://www.oecd.org/agr/policy].

All data entering in the PSE/CSE/TSE calculation are provided on a calendar year basis.

 

Table 2. Market Price Support and Consumer Support Estimate by commodity

 

Definitions:

I. Level of production

Wheat, maize, barley, sunflower: Total level production during the calendar year [1].

Sugar / sugar beet: Total level production of sugar beet during the calendar year [1]. The sugar beet production is expressed in sugar equivalent using the sugar beet/sugar ratio.

Milk: Total milk production during the calendar year in million litres [1], reconverted into tonnes using the coefficient 1 litre = 1.03 kg.

Beef and veal, pigmeat, sheepmeat: Total level production in liveweight during the calendar year [1], converted into carcass weight using liveweight/carcass ratios (beef and veal: 0.56; pigmeat: 0.80; sheepmeat: 0.47).

Poultry: Total level production of chicken, duck, goose and turkey in liveweight during the calendar year [1], converted into carcass weight using liveweight/carcass ratios (chicken 0.76, turkey 0.8, goose 0.8 and duck 0.70).

Eggs: Total production of eggs in shell during the calendar year in millions of pieces [1], converted into tonnes using the ratio 18.3 eggs per kilogram.

Potatoes. Total level production during the calendar year [1].

II. Producer price

Wheat, maize: Weighted average of procurement and free market prices at farm gate [1].

Barley: Weighted average of contract and free market prices at farm gate for feed barley and malting barley [1].

Sunflower, sugar beet: Weighted average of contract and free market prices of deliveries to oil crushers and sugar processors [1].

Milk: Weighted average of procurement and free market prices for milk deliveries, with production consumed on farm valued at free market prices [1].

Beef and veal, pigmeat, sheepmeat: Weighted average of procurement and free market prices at farmgate, liveweight price converted into carcass weight equivalent using liveweight/carcass ratios (beef and veal: 0.56; pigmeat: 0.80; sheepmeat: 0.47) ([1].

Poultry: Weighted average of procurement and free market prices at farmgate, liveweight price [1] converted into carcass weight equivalent using liveweight/carcass ratios (chicken 0.76, turkey 0.8, goose 0.8 and duck 0.70).

Eggs: Weighted average farm gate price of production procured and production marketed of eggs in shell [1].

Potatoes: Weighted average of procurement (late varieties) [1] and free market prices at farm gate [4].

IV. Level of consumption

Wheat, maize, barley, sunflower: Total consumption during the calendar year, including consumption on farm [1].

Sugar / sugar beet: Total sugar consumption in processing industry and retail [1]. The sugar beet consumption is calculated using the sugar beet/sugar coefficients.

Milk: Total consumption of milk and dairy products expressed in milk equivalent, calendar year [1].

Beef and veal, pigmeat, sheepmeat, poultry: Total consumption, carcass weight, calendar year [1].

Eggs: Total consumption of eggs in million pieces, calendar year [1], converted in tonnes using the ratio 1 kg = 18.2 eggs.

Potatoes: Total consumption during the calendar year [4].

VII. Reference prices

Common wheat: EC export price of standard quality wheat to specified zones, fob Rouen, calendar year [5], minus handling and trading margin [4].

Maize: EC import price of USA Yellow Corn No. 3, c.i.f. Rotterdam, calendar year [5] minus handling and trading margin [4].

Barley: EU (Rouen, France), fob minimum prices or price ranges at weekly free market tenders, net of export restitution or taxes, calendar year [5], minus handling and trading margin [4].

Sunflower: EC import price (average of France and Spain), c.i.f. Rotterdam [5], calendar year, minus handling and trading margin [4].

White sugar(equivalent) : EC export price of white sugar, Bourse de Paris (daily prices), fob Europe, (calendar year) [5] dividing by the product of the ratio of white sugar intervention price to basic sugar beet price and the ratio of white sugar production to sugar beet production [4].

Milk: Farm gate price of milk, calendar year, actual fat content (x%) in New Zealand [2], plus transport cost for butter and skimmed milk powder in milk equivalent (56 kg and 82 kg per tonne of milk, respectively) from New Zealand to the United Kingdom (Pnz), adjusted to fat content (y%) in Hungary [1]; the reference price being (Pnz)*[ (x%)+(y%)] /2*(x%).

Beef and veal: Hungarian export unit value for carcasses [3] minus handling and processing costs [4] to convert to carcass equivalent at farmgate. From 1998, Hungarian export unit value for live cattle for slaughtering converted by coefficient 0.56 in carcass equivalent at farmgate.

Pigmeat: 1986-1996, Hungarian export unit value for carcasses [3], since 1997, EU reference price (Unit export value in extra-EC trade of pigmeat) [5] minus handling and processing costs [4] to convert to carcass equivalent at farmgate.

Sheepmeat: Hungarian export unit value for carcasses [3] converted to carcass equivalent at farmgate by deducting handling and processing costs [4].

Poultry meat: Unit export value in extra-EU trade of 70 per cent chickens, frozen, (NIMEXE Code 020203 and, since 1989, weighted average of NC 02071015 and NC 02072110 of external trade statistics) [5], calendar year, minus handling and processing costs [4].

Eggs: Unit export value in extra-EC trade of poultry eggs in shell, fresh or preserved, other than eggs for hatching (NIMEXE Code 040514 and since 1988 NC 04070030 of external trade statistics), calendar year [5], minus handling and processing costs [4].

Potatoes: Unit export value of late potatoes ("other potatoes" i.e. excluding seed and early potatoes, published by FAO). The border (f.o.b.) reference price converted at farm gate level by using the ratio between the domestic wholesale price and the procurement price (at farm gate) of late potatoes. As the wholesale price information is only available for the years 1997-2000, the average of the ratio for this period is applied back to estimate the reference price at farm gate.

Definition of handling and processing costs for specific commodities: The handling and processing costs are covering the estimation of the value added from the farm-gate products to the products for which the reference price is used.

Grains and oilseeds: handling and processing costs include the estimation of average transport costs to elevator and average costs for drying and cleaning.

Beef & veal, pigmeat: handling and processing costs include the estimation of average transport costs to the slaughterhouse and costs of slaughtering minus the value of the by-product (skin, fat, offals - the definition of the range of by-products to be deducted should be consistent with the definition of the products for which the reference price is reported).

Poultry and eggs: handling and processing costs are estimated as the difference between farmgate price (in cwe for poultry) and the processors (wholesale) price.

Potatoes: handling and processing costs are estimated as the difference between the wholesale price and the procurement price of late varieties.

Sources:

[1] Hungarian Central Statistical Office (HCSO), Budapest.

[2] MAF, New Zealand.

[3] Hungarian Trade Statistics.

[4] AKII

[5] See EU cookbook.