"While the favorable weather seemed to save the day not only for Hungarian agriculture, but, at least partly, for the Hungarian gross domestic profit (GDP) as well, the grape harvest will be only "acceptable" at best, local winemakers forecast.According to industry experts, the quality of this year’s grapes will be “erratic,” and pest-threats, such as brown rot, may also blight this year’s harvest.Meanwhile, the market environment continues to become ever less favorable for Hungarian wine producers, as their crucial, inland market continues to dwindle, due to the increasing ratio of imported products.
Legal battles
Legal battles related to the Tokaji brand abroad also continue to loom over the industry, with both Slovakia and Italy involved in what seems to be an endless, two-front war for Hungary.
The number of wine-consumers in Hungary, on the other hand, has stopped declining, or at least has reached a plateau, according to a recent poll by Gfk Hungária, published on Friday (Aug 22).
GFK observed that, contrary to recent years’ trends, 52 households out of 100 bought wine in 2007, leaving the figure basically unchanged compared to 2006, (although the quality and the amount of the purchased wine clearly reflects on the worsening economic situation, GFK notes).
Still, recent tendencies show a growth in the revenues of quality wine-makers due to an extension of this market niche.
While most Hungarians buy low quality (low cost) wines, most of the revenue is made from selling higher quality (and consequently more expensive) wines, according to an analysis by business weekly HVG.
But, given the limited size of the Hungarian market, producers also have to export their products, which makes the extremely strong forint a serious headache, HVG notes."
Source: Budapest Sun
01.09.2008