Around 100 canning factories are likely to be closed down as the industry struggles with the rising prices of raw materials and electricity, and low market demand.
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Currently there are around 300 canning factories in operation in Hungary. Supplies to the factories has dropped to 70,000 tonnes of pears in 2004, compared to 100,000 tonnes in 2003, according to the Hungarian News Digest. The volume of fruits bought by the factories has experienced a steady decline recently, while gherkin production has dropped to 36,000 tonnes in 2004.
Hungary currently produces up to 3.0 million tonnes of fruit and vegetables year, of which around 1 million is processed.
