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Mrs Dr. Katalin Szántó Török Managing director

THE ROLES AND POSITIONS OF THE WHOLESALE MARKETS IN HUNGARY. Mrs Dr. Katalin Szántó Török Managing director. Belgrade, 19 October, 2010. CONTENT. 1. SIMILAR PROBLEMS 2. POSITIONS OF WHOLESALE MARKETS IN HUNGARY 3. ROLE OF WHOLESALE MARKETS IN SALES OF FRUITS AND VEGETABLES

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Mrs Dr. Katalin Szántó Török Managing director

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  1. THE ROLES AND POSITIONS OF THE WHOLESALE MARKETS IN HUNGARY Mrs Dr. Katalin Szántó Török Managing director Belgrade, 19 October, 2010

  2. CONTENT 1. SIMILAR PROBLEMS 2. POSITIONS OF WHOLESALE MARKETS IN HUNGARY 3. ROLE OF WHOLESALE MARKETS IN SALES OF FRUITS AND VEGETABLES 4. POSITION OF DOROZSMA WHOLESALE MARKET IN HUNGARY 5. OBJECTIVES OF DOROZSMA WHOLESALE MARKET 6. ROLE OF DOROZSMA WHOLESALE MARKET IN SALES OF FRUITS AND VEGETABLES 7. PRESENTING THE PRODUCER ORGANIZATIONS 8. POSITIONS OF PRODUCER ORGANIZATIONS I-II. 9. FINDING OPPORTUNITIES FOR COOPERATIONS 10. COMMON SUCCESS 11. COMMON TENDER

  3. 1. SIMILAR PROBLEMS After joining the EU Local position Global challenge • Changing habits of theconsumers • Decrease the public purchasing power • The spead of new commercial forms (the wide range of variety of fruits and vegetables available for the population in the big multina-tional stores) – in Serbia there isn’t any multinational store, wholesale markets have monopol situation A large part of the local small economics had been victims of the accession to the common market. • Growing supply, cease of the shortage economy • Disintegration of the former producing and marketing channels (altering of the private ownership, new ways of sales channels appeared, privatization of food processing) • Fossilized of agricultural problems (the goods flowing in from the more developed countries fill the quality shortage whereas there is redundan-cy in produced goods on the spot The large part of the consumption of households is the food.

  4. 2. POSITIONS OF WHOLESALE MARKETS IN HUNGARY • In the early 90’s it became obvious that which of the wholesale markets would be outstanding in our country • The largest markets: Budapest Wholesale Market (BWM), Dorozsma Wholesale Market (DWM), Miskolc Wholesale Market (MWM) • BWM: the goods offered decreased by 10% between 2003 and 2009 • MWM: the level of producer sales decreased annualy by 15 %, decreasing demand

  5. 3. ROLE OF WHOLESALE MARKETS IN SALES OF FRUITS AND VEGETABLES Tendencies of producting vegetables and fruits: • Before joining the EU : 2,5-2,8 million tonne • Fort fluctuating because of the extreme wheather conditions • In the next years the half of the domestic consumption will be from the hungarian producting • Between 2001 and 2009 worth of export rose by 50%, the import trippled • Consumption of the vegetables and fruits : priceflexible, totally reduced • Since 2000 the quantity of the vegetables and fruits increased with 200 000 tonnes, (by 10-15% )

  6. 4. POSITION OF DOROZSMA WHOLESALE MARKET IN HUNGARY Dorozsma Wholesale Market plays a notable role : • The second largest market in the country, and the biggest in the region • The Economic Prestige Award: „Medium Enterprise of the Year” • The producers are primarily from the Southern Great Plain area • The dealers’interest is international • Developments: investments worth HUF 850 million • 2 modern trading hall complexes, several packing material storages, 500-tonne-capacity cold-store

  7. 5. OBJECTIVES OF DOROZSMA WHOLESALE MARKET • To develop the Dorozsma Wholesale Market into an international agro-logistics centre complying with European standards • Development of infrastructures • Networking • Cooperation with the serbian and romanian wholesale markets

  8. 6. ROLE OF DMW IN SALES OF FRUITS AND VEGETABLES • Market share of the Ltd. in the target segments increased by 33,4 % • The agglomeration of producers and dealers has stabilised • The dealers take the produce to the Transdanubian Region, Northern and Eastern Hungary, and to neighbour countries • 65% of the produced goods in the region will get to the Dorozsma Wholesale Market • Products going through our market fulfil the needs of about 200.000 homes • Almost half of our annual volume of goods comes directly from the producers, and the others are foreign products • In 2009 nearly 360 000 transporting veicles and 410 000 tonns of goods got to the market

  9. 7. PRESENTING THE PRODUCER ORGANIZATIONS (OP) • Form establisement: cooperative, ltd, plc or other organizations • The producers own membership • The aim of the establisement is that promoting producers can reach the market, moreover to improve their market positions . Have the right to obtain resources from the EU • Before joining the EU 100 producer organizations were establised, eversince their number halved • It provides for their members: secure market, organized sales, professional recommendations and other services • Disadvantage: the producer gets the money more slowly, usually gets lower price, administration

  10. 8. POSITIONS OF PRODUCER ORGANIZATIONS I. • 20 000 members, 35 000 ha arable land • Total revenue: HUF 43 mrd in 2008 (HUF 36 mrd from members) • Part of the producer organizations’ sales is 20% of total sales in the field of vegetables and fruits • Producer organizations in Csongrád county:  Kunkert PO, Röszkert PO, HORTICO Vegetable PO, Forrásker- PO, PaprikaKert PO Ltd., Mórakert Vegetable-Fruit PO, Southern Gardeners Vegetable-Fruit PO, FLORATOM-KER PO, KISTÉR- PO, Kistelek and Region PO, GREEN-Product PO, Gorzsai Pepper PO, DŐNE FRUCT Vegetable-Fruit PO

  11. 8. POSITIONS OF PRODUCER ORGANIZATIONS II. Developing domestic producer organizations had stopped Cause: • Black economy, increase of VAT • Southern Plain producer organizations’ financial situation became instable • Debts towards members In the long run it could be the potential competitor of Dorozsma Wholesale Market however in the short run the suppliers would prefer to market their products in the wholesale market

  12. 9. FINDING OPPORTUNITIES FOR COOPERATIONS Special field Activites Joint development of local agricultural markets, joint the global markets by achieving the critical mass Producting the local stability fund of product that suitable the standards of the Union (food safety, standards, regulations) Quality of product Logistics Development of infrastructure (market hall, parking places, stb.) Electronical sales (virtual produce exchange) common marketing (exhibition) Sale Joint border tenders, complamentary developments

  13. 10. COMMON SUCCESS Aim Results Fortify the center positioned local agricultural market-places of great importance Strategical european cooperation between the two country with promoting their own and special products Ensure the stable revenues for the sustainable local governments • Ensure cheap and qualitative products for the inhabitants and agglomeration of producers and dealers • Ensure competitiveness for the agricultural enterprises

  14. 11. COMMON TENDEREnhancing economic cooperation in the field of integrated agricultural supply of goods along the Serbian-Hungarian border Application ID: HU-SRB/0901/211/159 Name of the Lead Beneficiary: City of Subotica Total project budget: 180 000 EUR Requested IPA funding: 153 000 EUR Own contribution: 18 000 EUR State contribution: 9 000 EUR Results of the project: • The experience exchange regarding market-places, retail and wholesale market-places, and producers • Establishment and harmonization of models of wholesale market-places with the network of regional wholesale market-places and buy-up centres • Establishment of an integrated agricultural supply of goods in the border region adjusted to market demand • Extension of market-place assortment with more organic valuable products • Promoting market-place activities and quality labelling of regional and local products as well as more efficient informing of target groups. • Awareness raising and training of relevant target groups.

  15. THANK YOU FOR YOUR ATTENTION! Address: H-6791 Szeged, 2-4. Kettőshatári Road Phone: +36-62/461-095 Fax: +36-62/559-651 E-mail: toroknekatalin@dornagypiac.hu website: www.dornagypiac.hu

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