November 23, 2015

6 reasons to start food processing in Eastern Hungary

Expanding on European market could mean a new food processing plant in the low-cost Central and Eastern Europe. Eastern Hungary's strong food cluster provides more benefit to start here.
Leading food and beverage companies in Eastern Hungary
#1: Save the long-distance food transport costs
It has relevant shipping costs of exporting processed food and bevarages to the European Union. If you spare long food miles, you not just save money, but also protect our environment. Plus, there are no legal barriers befor market entry inside the EU. The Eastern European food processing countries, like Poland and Hungary, have relevant food export to the western part of the EU, so its an existing model for businesses. Eastern Hungary has excellent transportation connections to Western Europe: the length of the Hungarian motorways reaches 1600 kms (1000 miles),far the largest number in Eastern Europe.

#2: Boosting raw material production, increasing efficiency
The Eastern Hungarian food processing cluster is based on one of the strongest agriculture in Eastern Europe. Raw material production and sales is the integral part of local economy. The agricultural production is not low-cost only, but its efficiency is also improving.

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#3: Award winning location
Eastern Hungary is one of the most awarded Eastern European locations by Financial Times’ fDi Magazine: recently it was selected to the top10 best cost effective regions of Europe.

#4: Specialized business park offers
Eastern Hungary has almost 100 industrial parks, it’s more, than the number of industrial parks in Poland. The competing real estate market resulted specialized business parks, including food processing parks (e.g: M35 Business Park).

#5: Large labour supply
The number of job seekers in Eastern Hungary is more, than 200,000, the half of total unemployment in Hungary. Big numbers of blue/white collar workers are available, and strong governmental re-training programmes provide company-specific knowledge for them. The food business is one of the target sectors of government`s job creation strategy. 

#6: Governmental incentives are focusing on Eastern Hungary
The goal of governmental incentives is to orient foreign direct investments into underdeveloped regions with high unemployment. Eastern Hungary is among the most intensively (potentially 50%) subsidized regions of the EU. So, when you think about to invest in Eastern Hungary, prepare for a pleasant surprise.
Local governments also subsidize food processing investments. E.g the municipality of Hajduboszormeny provides industrial land for free, a vice mayor dedicated to support the implementation of your investment and more.

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