Georgian wine producer "Nekresi Estate" argues that state regulation of grape prices is harmful to the industry and undermines the principles of a free market. Company head Otar Tabatadze voiced these concerns in a conversation with BM.GE, highlighting the difficulties currently facing Georgian winemakers.
“The state regulates the price of grapes, which is wrong. There should be a free market, competition, and the natural flow of the economy. We are in a difficult situation, up to 75% of Georgian wine exports go to Russia, meaning one country has effectively monopolized our exports,” Tabatadze stated.
According to Tabatadze, it is impossible to make accurate predictions due to external challenges. He pointed to global warming as one of the biggest threats to winemaking.
“Due to climate change, the quality of grapes is deteriorating, and various diseases are becoming more common. We often have to revise our plans; when it rains, harvesting is physically impossible. For several years now, heavy rainfall in September has posed a serious challenge for both grape growers and winemakers,” he said.
The company head also underlined the economic pressures caused by a shrinking exporting market. Reduced sales to Russia, combined with rising grape prices, are squeezing many wine producers.
“The price of wine is decreasing, while the purchase price of grapes is increasing. This creates additional pressure for enterprises,” Tabatadze noted.
Located in Kakheti, "Nekresi Estate" annually produces around 45,000 bottles of wine, including still, sparkling, and distilled products. Beyond winemaking, the company also operates a hotel and restaurant, creating a diversified hub for wine tourism in the region.
