Agriculture with Purpose: Innovation and Responsibility Go Hand in Hand
Interview with Lajos Szabó, CEO of HÓDAGRO Zrt.
Few companies manage to combine full-cycle food production, agricultural innovation and long-term stability as seamlessly as HÓDAGRO Zrt. Once burdened by debt, the company has grown into one of Hungary’s most respected agribusinesses – combining tradition, innovation and strategic foresight. In this interview, CEO Lajos Szabó shares how the company overcame financial hardship, adapted to climate change, and built an integrated food production model that spans from field to final product – while also addressing the challenges of generational transition.
European Business: Mr. Szabó, let us begin with a look at the origins of your company. How did HÓDAGRO Zrt. develop over time?
Lajos Szabó: Our roots go back to 1992, when the company was established through a consolidation of several agricultural cooperatives. Over time, we transformed from a regional player into one of Hungary’s most significant agribusinesses. Today, we cultivate around 4,000 hectares and focus entirely on our own land. We raise cattle, produce feed, manage a dairy plant, and operate a bakery. Our structure integrates multiple food chains, from field to final product. In 2002, we took a major leap: my father and I decided to take over the business and steer it into a new direction. Today, the company generates an annual revenue between 3.8 and 4.5 billion HUF.
European Business: The Hungarian agricultural sector is facing enormous challenges, especially due to climate change. How do you handle these conditions?
Lajos Szabó: Drought has become a constant threat. Rainfall is irregular and often insufficient, especially in the critical months of June and July. To mitigate this, we have invested heavily in innovation projects and alternative cultivation methods. For instance, we’ve reduced deep tillage in favour of shallow cultivation to preserve soil bacteria and structure, saving energy and improving resilience.
European Business: What is the idea behind shallow tillage, and how has it affected your yields?
Lajos Szabó: The technique avoids turning the soil, which protects microbial ecosystems and prevents compact layers that hinder root growth. It also reduces energy and labour needs. We’ve learned to work with nature rather than against it. For example, we’ve advanced our corn sowing into early March to avoid the worst of the summer heat. That approach, along with hybrid seed selection, has yielded remarkable results.
European Business: You also operate substantial livestock and dairy operations. Can you share some figures?
Lajos Szabó: Certainly. We manage around 650 cows, with an average lactation of 12,500 to 12,800 litres. Our silage corn storage has a capacity of 22,000 tons, and we’ve built new facilities over the past five years, including a 250-place calf barn. We aim to produce feed in-house and avoid mycotoxin risks by keeping full control over the silage process.
European Business: You’ve been with the company for many decades. What motivated you to take the lead – and what have been the most defining moments along the way?
Lajos Szabó: I’ve been with the company almost since the beginning. It has been nearly 50 years now. I started at a time when the business was under state control and in serious debt. In 2002, my father and I decided to buy it out – against all odds. At that time, we had debts of 644 million HUF and a minimal profit. But we believed in our people and took the risk. It paid off.
European Business: How would you describe your current role as CEO?
Lajos Szabó: I remain closely involved in daily operations, even though strategic planning is increasingly important. I enjoy working with the younger generation – they bring new ideas and perspectives. However, it’s a challenge. Today’s youth often seek a different work-life balance, and we must adapt to that mindset while preserving our culture of accountability and persistence.
European Business: You mentioned your team and culture. What do you consider key to your long-term success?
Lajos Szabó: Unity and responsibility. During our toughest years, we reduced the workforce from 400 to 250 – but productivity rose by 60%. We made this decision together, and that created a shared commitment. I also believe in solving problems directly. If something goes wrong, my people know I’ll take responsibility and act fast. That trust is our foundation.
European Business: What is your vision for the future of HÓDAGRO Zrt.?
Lajos Szabó: We want to grow steadily, not aggressively. Stability is key. We are expanding precision agriculture and irrigation systems to secure our yields. At the same time, we will maintain our livestock operations and continue exploring new, innovative solutions. It’s not about quick wins but about sustainability, resilience and long-term vision – for our business, for our region and for the 130 families that depend on us.