The effect of the foreign capital and European subventions on the competitiveness of the Hungarian agribusiness’ enterprises in the last 15 years

In our research we examine the foreign investments from the change of regime, privatization; EU accession, possibilities offered by subventions (2004-2006); so the experiences of the last 15 years, and we draw up the expectations from the actual New Hungary Rural Development and National Diversification Programs (2007-13). We try to establish a complex diagnosis about the role, effect and results of the foreign capital and EU subsidies – by analyzing advantages, disadvantages; positive, negative effects – in order to chart the problems to be avoided and missions to be reinforced – at the company and at the sector level – like structural reorganization of sectors, or necessity of developing company structures which contribute to identify the key necessary to the improvement of the competitiveness of the Hungarian food economy. Important strategic decisions are necessary: financial resources to investments; owners; developing structures; reinforce technological, logistical, organizational, HR, R+D and innovation background. The sugar is a strategic product and it is considered to be a strategic sector everywhere on the world. In our presentation we would like to present how this strategic sector had prospered and had disappeared during the last 15 years, and how the diversification takes place in Hungary.