#

#

Minister Davitashvili: “We aspire to foster increase of sales and decrease dependency on an existing and traditional markets”

“Today, the Government of Georgia has adopted a crucial decision, which will accelerate support toward promoting visibility of the Georgian wine and boost export sales. It is vital that the new project comes into force during the vintage period. We have launched efforts of working on the respective project from the very start of an incumbent year. The project’s design has been agreed with the Winegrowers Association of Georgia. We have hosted numerous meetings with the entrepreneurs in order to reach final agreement on some of the terms. The project entails funding of the so called “Treymarketing”, which spans across numerous actions of trade marketing and provides co-funding grants to the wine-producing companies. As you are aware, the Government and leadership of Georgia have been intensifying efforts for promoting Georgian wine, thus, we shall embrace an increased funding for the respective actions. Since 2013, the budget has been tripled and amounts to 3 million. Nowadays, the budget for promoting Georgian wine is around 9 – 10 million GEL; the National Wine Agency deploys various actions for promotion objectives at pre-selected target markets. As an outcome of the research efforts, specific directions have been selected, which enjoy the most experienced and competent marketing companies, which successfully deploy marketing communications operate in the field of wine industry; we have also selected highly credible and influential wine critics, influencers, masters of wine, masters-sommeliers of wine, which have a long record of promoting the Georgian wine. These are the people who are well-aware of the peculiarities of the Georgian wine. We have already developed numerous materials in multiple languages and for communicating to target markets. Dissemination of information on Georgian wine is held in a constant mode at target markets, such as the United States of America, Great Britain, Poland, as well as South-East Asia, Baltic States and etc. We would like to make the Georgian wine a more popular one and translate our efforts into a more success for the wine companies, which will fundamentally affect success of an entire industry and vine-farmers.Therefore, we have decided to embrace the new stage, when the Georgian wine expands beyond niche segment into the new markets and into a more universal category. The Georgian wine shall be accessible among the core channels of sale, such as the so called “on trade” as well as service- Horeca sector and chain of shops, retail. Therefore, it is vital to fund specific marketing actions, which are deployed by the Georgian wine companies. As a result, we will provide co-funding at those markets, which already have Georgian wine, however, it still requires assistance to be at a point, which is desirable by us. The Georgian wine shall attain a crucial position among popular and exporter countries. Wines of a the new world is accessible at every European country’s market; moreover, popular wines are accessible in both, US and South-East Asian region. This is the category, where we would love the Georgian wine to move to. Nowadays, the Georgian wine is sold in around 60 countries. In 2019, around 341 countries exported it to 53 countries. Number of companies and export destinations significantly increased in 2020, which has span across 60 countries and 376 companies. However, we are motivated to reflect increased numbers into increased sales. We have already attained a number of 100 million bottles in a year, which is our projection for the year of 2021. We have already advertised 10-year plan, which shall ensure export income of wine sector by the year of 2030 to amount 1 billion USD; the latter objective aims at tripling income from products that are of grape origin.   Co-funding of marketing actions aims at spanning across each and every market, which entails Georgian wine, except for Georgia and the Commonwealth of Independent States. By all means, we do not need to foster realization of Georgian wine within the country itself, since small, medium and larger companies have already been engaged into these actions. Our objective is to foster and increase export sales including in new geography. There have been various questions on diversifying the markets; our primary goal in this regard is to access new markets, which we had already targeted and the Georgian wine has already been progressing there. We are motivated to increase pace and decrease dependency on an incumbent and traditional markets. Therefore, we do not fund marketing actions at the Commonwealth of Independent States, however, we do fund all the other countries, which will host marketing initiatives deployed by our wine companies. The budget for marketing events for a year has been determined at 600, 000 GEL, however we are at the pilot version and the Government may increase funding if the program proves to be successful. At the same time, it has a direct effect on increasing sales. We will have a comparison of a specific reporting year, when the co-funding of the events will be ensured and sales shall be on rise in comparison to the previous year, thus such data will be a turning point for us. In the respective scenario, a limiting and additional factor is 2 GEL per every bottle sold and it is a budget. As I have already mentioned, a total funding per each company is about 600, 000 with a perspective of boosting it. In fact, we are motivated not to replace the private companies’ marketing actions, therefore one of the core objectives for us is for the private companies to increase their marketing budget, which shall also be visible in an audit. More specifically, an incumbent year’s marketing costs shall be increased in comparison to the previous year, therefore – we will fund the respective increased amount.  I firmly believe that the program will be successful, as it has been elaborated in close cooperation with the private sector. We have hosted numerous discussions, meetings and negotiations with the wine-producer companies. Throughout the process, we have collected feedback and have reached a joint consensus. Therefore, the project has been translated from joint efforts and I believe that the companies will join in with great enthusiasm. We will deploy significant financial stimulus for the next 3-4 years, which will translate into tangible results and in a short-period of 5 years – we will ensure tremendous success in promoting Georgian wine; moreover, we will transform our successful sales” – the Vice-Prime Minister and Minister of Environmental Protection and Agriculture of Georgia, Mr Levan Davitashvili stated, after commencing the Government’s session. 
#

#

Minister Davitashvili: “Our staff and units have intensified their work amidst the disaster to ensure an undisrupted accommodation of grapes”

“On August 26, a natural disaster hit the Kakheti region, which caused an immense damage to agricultural-rural seedlings; however, the State ensured an immediate intervention. From the first day, the coordination unit did join forces with the local government authority and launched efforts to calculate the damage. At this stage, around 5000 hectares has been damaged in an entire Kakheti region, which mostly spans across Telavi, Gurjaani and Kvareli municipalities; while the latter three municipalities have witnessed 100 % of the damage, there are areas with 30-50 % of damage. We have ensured a detailed calculation of the 5000 hectares of damage, which mostly covers Saperavi and Rkatsiteli vineyards and has affected viticulture farmers. We have made an instant decision to ensure immediate communication with the farmers and guarantee that their harvest is accommodated at several factories contracted by the State and despite of any damage of these grapes. Throughout the vintage, the State enterprise LTD “Crop Management Company” has been represented at every municipality of Kakheti, which has contracted various wine companies, who will ensure an undisrupted accommodation of our farmers’ harvest. Amidst the disaster, our coordination unit and each and every staff member and municipality have ensured an undisrupted process. Nevertheless, some of the media outlets have spread false information that the accommodation process has been a challenging one; meanwhile, we are not surprised with the latter speculation, despite of the fact that since 2012 each kilogram of grapes has been accepted and accommodated without any problem. There has not been any vintage without disseminating false information and without political speculations. Some of the political powers target harvest of a one-year process as their political aspirations and abuse it for their agenda.  Nevertheless, we are deploying tireless efforts to stand aside our farmers and vine-farmers. Upon an initiative of the Prime Minister of Georgia, I have personally visited the region and the respective farmers along with the leadership of Kakheti. We have discussed on what could be undertaken for a greater assistance and we are firm that the farmers’ expectations have been fully satisfied. Damaged grapes of Rkatsiteli will be accepted for 0,8 GEL, while damaged grapes of Saperavi will be accepted for 1 GEL; the latter will be accepted at each and every location, which is available at an area of disaster. Our efforts will safeguard farmers from traveling at a long distance in order to accommodate their harvest; the process is smooth. We are fully aware that some of the goods can be disposed soon and shall be accommodates as soon as possible. The State has undertaken every effort for an organized accommodation. The farmers, whose harvest has been completely damaged, the State will provide them with 3000 GEL of compensation. In fact, it is an amount which they require to get a harvest. Unfortunately, the disaster has caught us in the process of the vintage, thus we will ensure full compensation to empower farmers to proceed with production, keeping vineyard and their future activities. Meanwhile, we have agreed to fully or partially replace perennial crops with a significant damage; we would rely the latter decision to the farmers themselves. Our component “Plant the Future” had been temporarily enacted two years ago. We will re-launch the latter this year to ensure a full compensation of the seedlings’ worth and also for arranging a plantation; in case of applying drop-system, then, the co-funding will enable gardeners and vine-farmers to restore their plantations. We shall embrace that the insurance companies have been effectively operating in the region and the State ensures a constant liaison with those insurance companies, who had insured farmers in Kakheti. I would like to once again utilize an opportunity and address our farmers to use insurance packages, which are offered by the State. In frames of the agro-insurance, half of an insurance payment will be made by the State, while dealing with vineyards, thus making the process greatly affordable. We have had meetings with the farmers and each one of them acknowledge failure to utilize insurance in an incumbent year. Despite of an increasing rate of insurance, we can assert that from damaged spaces up to 1200 hectares of territories has been insured. Those insured will be eligible to a complete compensation and are in an advantaged situation. It is a clear demonstration that insurance is crucial for agricultural-rural activities to safeguard future from the an ongoing obstacles” – The Vice Prime Minister and Minister of Environmental Protection and Agriculture of Georgia, Mr Levan Davitashvili stated today, after commencing of the Government’s session. 
#

Minister Davitashvili: “In an incumbent year, similarly to the previous ones, we are standing by our compatriots to ensure minimizing damage caused to the disaster”

The Vice Prime Minister and Minister of Environmental Protection and Agriculture of Georgia, Mr Levan Davitashvili, Mr Leri Barnabishvili, head of the Regional Liaison Department along with Mr Irakli Shioshvili, State Trustee of the Kakheti region met with the farmers, who have suffered from the natural disaster and briefed them on the assistance programs to be deployed by the State. “I would like stress out that each and every year, the State is standing by the people and we are undertaking every possible effort to safeguard them from the damage, which is an aftermath of the disaster. Some of the political powers do try to speculate with these developments and manipulate on the people’s feelings. They have stated that the citizens have been abandoned and there is an absence of the State assistance. Their claims are false due to the fact that our coordination unit’s staff have been actively engaging with the farmers to accommodate the damaged grapes in an organized manner. We shall embrace how unprecedented the support to the viticulture by our Government has been, which translates from consistent policy and deploying various actions, such as developing the industry as well as offering compensations, when required. We can recall unprecedented compensations of 2012 offered by Mr Bidzina Ivanishvili and “Cartu” Foundation, which assisted farmers in hardships. This year, the Government has decided to issue a one-time compensation of 3000 GEL to the farmers, whose harvest has been completely destroyed. Also, damaged grapes of Rkatsiteli will be accepted for 0,8 GEL, while damaged grapes of Saperavi will be accepted for 1 GEL” – Mr Davitashvili stated. On August 26, strong wind and hail has damaged 4600 hectares of grapes in the Telavi and Gurjaani municipalities of the Kakheti region. 
#

Minister Davitashvili: “All the resources have been mobilized to empower farmers to allocate damaged grapes without disruptions”

The Vice Prime Minister and Minister of Environmental Protection and Agriculture of Georgia, Mr Levan Davitashvili, Mr Leri Barnabishvili, head of the Regional Liaison Department along with Mr Irakli Shioshvili, State Trustee of the Kakheti region has personally observed acceptance process of the damaged grapes by the State enterprise LTD “Crop Management Company”. “All the resources have been mobilized to empower farmers to allocate hail-damaged grapes by September 3 and without disruptions. Damaged grapes will be accepted at various locations of the Telavi, Gurjaani and Kvareli municipalities. Also, damaged grapes of Rkatsiteli will be accepted for 0,8 GEL, while damaged grapes of Saperavi will be accepted for 1 GEL” – Mr Davitashvili stated. On August 26, strong wind and hail has damaged 4600 hectares of grapes in the Telavi and Gurjaani municipalities of the Kakheti region. The State enterprise LTD “Crop Management Company” has launched acceptance efforts on August 27 and will proceed by September 3. 
#

Minister Davitashvili: “Damaged grapes of Rkatsiteli will be accepted for 0,8 GEL and damaged grapes of Saperavi will be accepted for 1 GEL, while there will be a one-time compensation of 3000 GEL to the farmers, whose harvest has been completely destroyed”

The Vice Prime Minister and Minister of Environmental Protection and Agriculture of Georgia, Mr Levan Davitashvili, Mr Leri Barnabishvili, head of the Regional Liaison Department along with Mr Irakli Shioshvili, State Trustee of the Kakheti region hosted a working meeting on accepting-processing hail-damaged grapes at the coordination unit. “5 municipalities of the Kakheti region have been affected by unprecedented disaster, which has damaged rural-agricultural seedlings. We have deployed an instant assistance and the coordination unit has ruled out instant decision. Every kilogram of grapes will be accepted and various acceptance locations have been established to enable farmers to have their grapes accepted - damaged grapes of Rkatsiteli will be accepted for 0,8 GEL, while damaged grapes of Saperavi will be accepted for 1 GEL, while there will be a one-time compensation of 3000 GEL to the farmers, whose harvest has been completely destroyed, enabling farmers to recover vineyards and produce grapes. It is of utmost importance for us to restore damaged plantations, which will be unable to have harvest next year. Therefore, we have enacted the component within the “Plant the Future” program, which will restore plantations and co-funding of amelioration systems. These actions will be an adequate response to the farmers’ needs” – Minister Davitashvili stated.  On August 26, strong wind and hail has damaged 4600 hectares of grapes in the Telavi and Gurjaani municipalities of the Kakheti region.