News
Changes were implemented in the program ‘’ Support for Viticulture Cooperatives’’
The state program implemented by the Agricultural and Rural Development Agency envisages a support to agricultural cooperatives by co-financing purchasing an equipment, which is necessary for primary processing of grapes. The participants of the cooperative program will get benefits from selling wine. The content changes aim to simplify the terms and conditions of the program and promote agricultural cooperatives by creating an environment where cooperative members will be provided with an extra incentives which will further result in more agricultural cooperatives to get engaged in the program.
According to the changes implemented in the program, agricultural cooperatives, particularly those owning not less than 20 hectares of vineyards will have an opportunity to participate in the program. Moreover, 14 landowners (shareholders), instead of 20 landowners, must individually own or (on the basis of each member's cooperative contribution) share at least 0.3 hectares of vineyards. In addition, the number of members of the agricultural cooperative will be reduced to 10 shareholders instead of 20, out of which at least 7 shareholders should own or make a contribution of at least 0.1 hectares of vineyard, only in case if agricultural cooperative program is implemented in the mountainous settlement defined by the Law of Georgia on the Development of High Mountainous Regions.
Under the new project, agricultural cooperatives will provide necessary measures for construction / reconstruction of the enterprise and the agency will co-finance 90% of the purchase cost of grape processing machinery, but not more than GEL 500,000.
This change will simplify and make the program implementation more flexible. If the project is implemented in a highland settlement defined by the Law of Georgia on the Development of Highland Regions, the Agency's co-financing shall include at least 50% of the purchase cost of machinery for grape processing, not more than 95% co-financing. The abovementioned changes will lead to an improvement to the economic conditions of people living in the mountainous regions.
Since the launch of the project, 13 grape processing cooperatives ( 12 in Kakheti and 1 in Imereti regions) have been funded within the frame of the state aid program supporting viticulture cooperatives. The cooperatives received a total of GEL 6 million worth of equipment to receive and process 100 tons of grapes.