Georgia’s 2026 grape harvest model continues state intervention in the market, with the Harvest Management Company set to purchase surplus grapes. Prices now vary more clearly by quality and sugar content, ranging from GEL 1.50 per kg for high-quality Saperavi to GEL 0.30 for damaged, low-sugar grapes. The company has announced a GEL 50 million procurement for harvest-related goods and services.
State support for grape growers expanded after Russia’s 2006 wine embargo created a major crisis for Georgia’s wine industry. While subsidies were initially aimed at protecting farmers and the sector, the policy later shifted toward government purchases of surplus grapes. In 2025, harvest support reached nearly GEL 246 million, while the Harvest Management Company produced 100.6 million liters of wine material from purchased grapes.
Critics argue that long-term subsidies can encourage overproduction and reduce incentives to improve quality, as farmers may expect the government to purchase surplus or lower-quality grapes. State support can also make grape growing more attractive than other agricultural activities, potentially contributing to supply imbalances. The company’s experience also highlights financial risks: inventory valued at GEL 220.7 million at the end of 2025 was later written down to GEL 52.2 million.
International experience suggests that price support alone is not enough to address oversupply. France and the EU have used measures such as crisis distillation and vineyard removal, while Australia emphasizes new export markets and adapting production to demand. For Georgia, a more sustainable approach could focus on quality, export growth, private-sector participation and production management, with the state acting as a last-resort buyer rather than providing a permanent price guarantee.
