July 25, 2007


Hungary plans to buy 1 million tonnes corn from EU stock


Hungary plans to repurchase 1 million tonnes of corn of the several millions of tonnes it had sold to European Union intervention since 2004, to resell it to Hungarian animal breeders in the wake of an expected poor corn crop, business daily Vilaggazdasag said Wednesday (Jul 25) citing a farm ministry official.


The transaction would cost the state budget about HUF38 billion (US$212.5 million), based on an expected price of EUR150/tonne, the official said.


That price would still be lower than the HUF40,000-45,000 price a tonne expected for corn in the autumn, and the autumn price could be even higher as the exceptionally warm weather has taken its toll on the corn crop, Zoltan Gogos, state secretary at the ministry, told the paper.


Citing unnamed specialists, the daily notes that Hungary's corn crop could be less this year than the 4 million to 5 million tonnes the country needs a year to feed its livestock. Hungary's corn crop totalled between 8 million and 9 million tonnes in recent years.


Hungary will need to hurry with its move since Romania and Bulgaria are also eying the EU's corn intervention stock, the paper added.


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