www.vdqs.fed-eco.org THE HUNGARIAN VINE SECTOR ON THRESHOLD OF EUROPEAN UNION

Unlike the rest of the national economy during the transition to the market economy Hungarian grape production and vine making industry achieved some important, profound results towards market-economy (e.g. importance of household farming, vine making firms owned by agricultural producers) from the middle of the sixties, long before such reforms were seriously considered in the food economy of other so-called socialist countries, or in other branches of Hungarian economy. After the change of the social and economic paradigms (change from a centrally planned and regulated economy to a market economy) Hungarian vine sector is facing numerous new problems and challenges. At the same time drastic changes took place in the environment of Hungarian national economy, too. The rush and unpredictable collapse of COMECON, the emergence of the European Single Market and the increasing need of import liberalisation (as a consequence of Hungary approaching the EU and the formation of WTO) sharpen the competition not only on export markets, but also on the home market. These processes necessitate an up-to-date analysis of competitiveness of Hungarian vine sector. The aim of this article is to analyse the interrelation of economic transition and competitiveness in the case of wine sector. Porter’s model was used as tool for analysing the factors, determining the competitiveness of Hungarian vine industry