Sustainable Wine and Grape Production, the Example of Hungary

Before analysing the economic situation of winegrape production, it is practical to mention some issues concerning the industry. Grape production in Hungary suffered a severe crisis in the 1990’s regarding both production and sales. Its consequence is the decreasing area of grape production and the reducing number of grape producers. Lately, after our EU accession the grape and wine verticum has significantly improved. The situation is still grave today as the producers have to face the more and more intense competition in the market and cheap import products both on the national and international markets. Grape production is in a more disadvantaged situation than wine making and the risks are higher. We have to know the cost-profit situation of the well-discernible verticum parts to make recommendations. Despite the changes, the great fluctuation in income is typical for the industry. Grape is one of the plants where price often did not cover costs in the consecutive years. Costs of production cannot be assessed on their own. They can be judged in relation with the yield changes in real.