Hungary’s green growth
Interview with László Kőszegi, Owner, CEO and Dr. Zoltán Gergácz, Chairman of the Board of Hőgyèszi Agrokémiai Kft.
Climate change is real – and it poses growing challenges to food security. The need for innovative approaches in agriculture has never been more critical. Soil degradation, loss of biodiversity, and declining crop yields are some of the key challenges facing agriculture today. Embracing modern methods is essential for building a more resilient, efficient, and environmentally sustainable agricultural system. Hőgyészi Agrokémiai Kft. from Hungary is prepared to take on this challenge.
European Business: Mr. Kőszegi, could you please share what Högyészi is focusing on?
László Kőszegi: We are a group of 26 companies organized into three profit centers: two trading companies and several farms operating on a total of 8,500 hectares of land. Dr. Gergácz is responsible for managing 7,500 hectares. Our focus is sustainability, healthy food products, and innovative approaches to agricultural production.
European Business: Hungary’s agriculture plays a significant role in its national economy. Around 60% of its territory is utilized for agriculture. Considering this, what role does the company play on the market?
László Kőszegi: There are around 50 companies involved in agricultural chemicals and products, with four major players; we are number five in the market. In 2022, our three profit centers had an annual revenue of 100 billion HUF.
European Business: What were the key milestones on your path to becoming a leading market player?
László Kőszegi: The period between 1991 and 1999 was characterized by our entry into the agricultural sector, starting with the distribution of pesticides and seeds, and later expanding into crop products. In 2001, we began acquiring agricultural production companies, including several grain storage facilities. Along the way, we also had to overcome serious challenges, such as the COVID-19 pandemic and a year of severe drought. Since 2022, we have been navigating an agricultural crisis that continues to impact the industry.
European Business: How would you describe the product portfolio?
László Kőszegi: In addition to various services, Hőgyészi Agrokémiai primarily offers fertilizers, pesticides, and seeds. Looking ahead, we are actively exploring new and innovative products, with a particular interest in organic solutions.
European Business: How would you describe the current market situation?
Dr. Zoltán Gergácz: The current market environment is difficult. Farmers are delaying investments, and certain products have been withdrawn from the market. Overall, the market is in decline, and competition is becoming increasingly intense.
European Business: In what ways does the company stand out when it comes to overcoming current market challenges?
László Kőszegi: We don’t just sell products – we provide expertise. Our sales team is highly professional and backed by a solid logistics concept. Our company culture and innovative spirit are our greatest strengths. We benefit from strong team spirit and a positive working atmosphere. Our strict focus on customer needs is another crucial factor.
European Business: How do you contribute to a more sustainable future?
Dr. Zoltán Gergácz: As an integrator and grain trader, we are committed to producing healthy food products and are part of the EU-initiated project “Farm to fork”. When it comes to quality, it all starts with traceability; that’s why we put great emphasis on certified processes and strict controls of the grain’s origin. At the moment, we are investing in a company that focuses on long-term human health through the use of natural raw materials. In the future, we will concentrate on organic products, especially seeds, not only to further strengthen our market position but also to make a meaningful contribution to a greener future. We are going to develop alternative farming methods and products.
European Business: You mentioned both certified processes and innovative farming methods. Could you give a concrete example of how these approaches work in practice?
Dr. Zoltán Gergácz: European agriculture is undergoing a period of significant disruption, largely due to climate change. We see this as both a challenge and an opportunity to drive meaningful transformation within the sector. For this reason, biodiversity will be essential. Instead of relying only on corn, wheat, and sunflowers, we need to explore new plants and innovative methods to revitalize our soils. Microbiomes play a key role in sustainable agriculture. Soils provide vital ecosystem services such as biomass production and biodiversity conservation. This year, we already harvested 17 different plant varieties.
European Business: Looking ahead, which areas of innovation will be most important for your sustainability strategy?
Dr. Zoltán Gergácz: We want to produce healthy food products, particularly oils and proteins. To ensure consistent quality and sustainability, we are committed to managing the entire value chain — from cultivation to the final product.
European Business: Have you already presented new products?
Dr. Zoltán Gergácz: Yes, we even won an innovation award for our cold-pressed flaxseed at a trade fair in London. Besides, we use black cumin, pumpkin, millet, and chickpeas. However, it is not easy to convince farmers to adopt new, innovative products, whereas consumers are a lot more open-minded.
European Business: What challenges do you anticipate in the future?
László Kőszegi: Challenges like climate change and depleted soils are complex scientific issues. That’s why we must rely on experts and researchers to develop sustainable solutions. And we need to act now – so that we can pass on valuable resources to the next generation.