Imported vegetables, often from third-party countries in North Africa, continue to exert significant pressure on the market, although Hungarian growers can meet shoppers’ needs during the domestic season and with a far smaller environmental footprint.
However, price sensitivity among consumers remains a significant issue, and Hungarian producers are often at a disadvantage due to the additional costs imposed by strict EU regulations. The net result has been that the share of imported vegetables in shops has steadily increased as consumers opt for lower prices, particularly since the energy crisis.
Délkertész represents 500 producers, family farms and entrepreneurs from the town of Szentes and its region, some 150 km southeast of Budapest by road. It is known as the home of peppers (Szentesi Paprika has been a protected geographical indication since 2014) but also produces tomatoes, cucumbers, and cabbage.
In a show of solidarity, Délkertész’ press conference earlier this month was attended by Ferenc Apáti, president and CEO of FruitVeB, the Hungarian Fruit and Vegetable Interprofessional Organization and Product Council. The two bodies argue that the share of Hungarian farm products should be significantly higher in stores than is currently the case.
“The goal during the season, from late April through to the end of October, would be around 80%, which would mean returning to the levels seen in 2019 and 2020. Right now, both in Hungary and Central and Eastern Europe, import pressure is extremely strong,” warns Sándor Nagypéter, president of Délkertész.
“Even after the start of the domestic season in May, peppers from the North African region are widely available in shops. This puts Hungarian producers in a difficult situation. However, expecting an 80% or higher share for peppers and tomatoes throughout the full season is not unrealistic; this was already achieved around Pentecost in most supermarket chains,” he adds.
Nagypéter accepts that Hungarian products must compete with imports but says CEE goods rarely start from the same position.
“It is difficult to compare vegetables when the rules are not the same. In the European Union, producers must comply with strict regulations on sustainability, working conditions, and quality assurance processes, while countries […] in North Africa operate under much less stringent requirements,” Nagypéter adds.
Hungarian products face additional competitive disadvantages: VAT on vegetables is 27%, whereas in neighboring countries, it is typically 5-10%.
Délkertész claims its producers focus heavily on sustainability, replacing fossil energy with renewables and prioritizing biological crop protection. Szentes is a hub for innovative greenhouse production, meaning vegetables can be grown in a precisely regulated environment, often heated with thermal water. However, climate change is already being felt even in Szentes: Higher temperatures make ventilation, misting, shading, automated irrigation, and, in extreme heat, cooling increasingly necessary. All of this comes at a cost.
Délkertész recently built a nearly HUF 3 billion logistics center spanning more than 10,000 sqm featuring six cold storage units. This month, it launched an online webshop, and a sample store has opened in Szentes, reflecting growing demand for direct sales to consumers.
This article was first published in the Budapest Business Journal print issue of June 27, 2025.
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