In Hungary, the strengthening of the economic role of families is supported by the relevant legislation, as the backbone of agricultural production is determined by the form of production based on family farms. The production activity carried out in a cross-generational framework is able to ensure the permanence and growth of the countryside on a lasting basis, while at the same time ensuring the preservation of the diversity of agriculture and strengthening its adaptability in the long term. The production of local products in small quantities, i.e. for marginal and local sales, is permitted by EU law and supported by lighter hygiene rules. In particular, it allows the continued use of traditional methods at any stage of production, processing or distribution of foodstuffs and in relation to the requirements of the establishments necessary for them.
For small quantities of basic products, it is up to the Member State to decide whether to apply the general EU rules for food business operators to these products, or to establish food safety and hygiene rules on the basis of a possible “exception” at national level. In order to support traditions rooted in Hungarian culture, the Hungarian legislator adopted Decree No 52/2010 on the conditions of small-scale food production and sale. (IV. 30.) FVM decided in favour of the ‘exception’ by adopting a decree, given that the primary priority at the time was to ensure the widest possible distribution of local products within the country.
In Hungary, small producers supply small-scale food to the final consumer:
- in the place of their farm,
- local farmers’ market, market, fair, occasional event and authorised temporary sales point operating in the territory of Hungary,
- by mail order, with the exception of foodstuffs requiring refrigeration,
- a delivery point and a vending machine, and
- retail and catering establishments.
If the small producer is a natural person, the production and sale of small producer food
- the small producer,
- a relative of the small producer,
- a person living in the same household as the small producer, and
- may be carried out by an employee of the small producer.
In Slovakia, the conditions for processing own basic products into small quantities are regulated by a government decree, which lays down the health requirements for the sale of small quantities of basic products of plant and animal origin, milk and milk products to the final consumer and retail institutions. The addendum to the Decree allows the processing of small quantities of own products in own premises which are not officially approved units, but which must comply with health regulations.
The range of people who can work with this:
- a natural person, if he or she complies with tax regulations, in which case he or she does not have to become an entrepreneur,
- an entrepreneur, an individual private farmer, who is obliged to register his business with the local government with territorial competence,
- primary producers and artisans and other persons who, in addition to plant and animal production, carry out other activities that qualify as private undertakings and are defined in the Act on private entrepreneurs,
- it may be made up of farmers who, in addition to individual private management, also form a public limited company, become legal persons and are thus subject to the rules applicable to commercial companies.
Each group is subject to different regulations regarding formation, documents required for the formation of the given company, tax and reporting obligations.
The sale can take place according to the rules on small-volume sales:
- directly at home/at the place of own holding,
- in the market,
- in a retail establishment
- in a webshop.