Friday, July 15, 2016

Agriculture minister: Vintage 2016 will be subsidized

15.07.2016. With Georgian government approval, subsidizing will be implemented in the range of  vintage  2016. As minister of agriculture Otar Danelia mentioned at the press-conference  held in the government administration, simultaneously with wine export growth, wine realization price decrease is fixed on international market. Accordingly, having regard to the interest of viticulturist peasants, Georgian government made decision to subsidize vintage 2016.

“In the range of vintage 2016, subsidizing was fixed by the state in the fallowing way: 1 kg Rkatsiteli and Kakhetian Mtsvane – 0.45 GEL, 1 kg Saperavi – 0.20 GEL, 1 kg Aleksandrouli and Mujuretuli – 2 GEL.  In the range of vintage 2016,  over 100 wineries will  obtain grapes. Like the last year, subsidy recipients will be viticulturists, not wineries. The main advantages of this principle is, that the peasant takes the fee in two weeks period in bank only on bases of the identity card, without delay. With the state promotion, viticulturist peasants/farmers will not have grapes left unsold. Predicted harvest amount of 2016 is 180 thousand tones”, - mentioned Otar Danelia.

As the Minister of Agriculture states, in a long-term perspective, viticulture and winery field will take an important place in the  economic progress  of the state. It will not have need to be subsidized  by the state.

“As the Prime-Minister stated, our aim is to finally come out of the subsidy state, as soon as  the field gives us an opportunity.  This is a fact, that today the field still needs support. It is important to include interests of both, viticulturists and producers”,- stated the minister.

As Otar Danelia says, to achieve the point mentioned above, the state supports viticulturists and wine-makers with cheap financial resource, lax agro-credit, agro-insurance, vineyards departmental cadastre program, export market diversification activities, on base of  which,  wine export has increased.

As a result of the activities organized for viticulture and winery field development, the state for the date is the following: in the range of lax agro-credit, 22 new wineries have been sponsored and 43 have been expanded. The process will be in progress”, – stated the Minister of Agriculture.

Otar Danelia also talked about Georgian wine export statistics. As the minster states, in the first half of the year, 19.8 mil.(0.75) bottles of wine (0.75 l) was exported Georgia to 40 countries worldwide, that is 44% higher, than the similar  data of the past year. In the period under review, 46.6 million USD worth of wine was exported, that is 18 % higher, than the similar data of the past year. In the period under review, the growth is remarkable as in the countries of European Union, as in China and other traditional markets.

According to data of 6 months, China replaces the fourth place to the third, after such traditional markets, as Russia and Ukraine.

Despite average export price decrease, on export number growth base, total income has grown in 2016  in wine case and also brand and brand alcohol cases.


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