Georgia’s Prime Minister Irakli Kobakhidze spoke about relates to the subsidies for the grape harvest at the Cabinet Meeting.
As Irakli Kobakhidze noted, viticulture and winemaking have been advancing from one year to another in the country and state support towards this sector is very big.
“As a result of state support, new vineyards have been planted; new enterprises and a new vineyards cadastre have been created. Year by year, the quality of wine is improving. During these years, the export markets have expanded significantly, and wine exports and harvests have increased to record-high levels. The agrocredit and agroinsurance systems are functioning effectively. Everything is being done to develop this field year after year. Special thanks to the Minister and Ministry of Environmental Protection and Agriculture (MEPA) for their efforts. The forecasted grape harvest for 2024 is about 300 000 tons.
It is very important for the state to take all measures to ensure that this crop is properly stored and sold. To support this, the harvest will be subsidized this year as well. This will ensure that the crop can be fully harvested, farmers receive adequate income, and the wine industry can maintain the stable development rate of recent years.
The state will implement financial intervention to support over 20 000 winegrowers, providing them with the opportunity to sell their harvest. Additionally, about 500 companies involved in the harvest will be able to purchase and process grapes smoothly. This is the goal of the subsidy.
In line with a government decision, the company receiving a state subsidy will, during the 2024 harvest, purchase and process at least 100 tons of Rkatsiteli grapes grown in the region. The company will also pay at least 1 GEL per kilogram of grapes to the seller.
In the Kakheti region, the subsidy for companies purchasing grapes grown there amounts to 0.20 GEL per kilogram of Rkatsiteli. A Task Force will be established to organize the delivery of the harvest. Everything will be done to support our farmers and related companies.
I want to highlight the growth we have seen since 2012. Back then, a total of 52 000 tons of grapes were processed. By 2023, this number had increased to over 221 000 tons, reflecting significant growth in this sector. In terms of income, viticulture earnings in 2012 were around 50 million GEL. By 2023, this figure had risen to 306 million GEL, and we expect it to grow even further this year. According to the National Cadastre Program data from 2014-2023, the area of vineyards has doubled nationwide. Winegrowers have planted up to 50 000 hectares of new vineyards, marking substantial progress in the field. In 2012, there were 40 registered wine companies in our country. Today, the number of registered wineries-both medium and small-has reached 3000, with about 500 of them exporting wine. Last year saw a record-high export rate, with wine worth 260 million USD shipped to 66 countries, compared to 71 million USD in 2012. This is also a remarkable growth. Support through various programs, including concessional agro-credit, has been substantial. Banks have issued 653 loans totaling over 886 million GEL to grape processing enterprises, while the co-financing from the Rural Development Agency amounted to 58 million GEL. These programs and financial support initiatives have significantly contributed to the development of the sector. I want to thank the Ministry [MEPA] and the Minister personally for their efforts in these achievements,” stated the Prime Minister.
