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Tuesday,
August 21,
2007, #159 (1426)
Farmers are expecting a record grape harvest this year-and they're terrified. Vineyard owners and the Ministry of Agriculture are frantically trying to plan a way to soften the blow as supplies overwhelm demand in the country. About 250 000 tons of grapes are expected to be plucked from the vine this harvest. That's nearly twice the amount last year, when the government had to step in to salvage the industry. President Saakashvili himself led the campaign to help farmers sell their grapes. He strongly recommended that businesses buy grapes, for whatever they may need them for, and many obliged. Tbilisi, celebrating Tbilisoba (a holiday in honor of the capital), was the recipient of gallon-loads of state-purchased grapes and wine. The administration will no doubt try to bail out desperate farmers again, but there's only so much they can reasonably do. A kilo of grapes dropped to under GEL 1 last year, and some Chicken Littles say the price could drop as low as 50 tetri this harvest. That would be ruinous for farmers, only barely covering cost. Another problem is just where the grapes could go. Winemakers themselves are still reeling from the Russian embargo, and the companies which survived have mostly cut production. Sales are on the increase in Ukraine, Kazakhstan and other CIS countries, but not nearly enough to make up for lost Russian market. And while salesmen are pitching Georgian wine aggressively in Europe, it's yet to make an impact. Recovery, then, is weak in the coming, and winemakers had more than enough grapes available to them last year. A deluge of grapes will not be helpful this time around. More direct bail-outs will be tough to manage. Last year, the state asked banks to give the wine industry more time to meet their loan payments, and they complied. But how long can the banks hold off on collecting? Those ink-and-paper Damocles' swords worry the brows of farmers and winemakers both; the state is considering sorting out more loans for the industry, but rational heads are justifiably wary about taking on more debt to see them through this season. And nor were last year's financial bail-outs without numerous hitches. The state promised it would loan money to winemakers-after they bought up the grape harvest. Farmers then handed over their grapes with hopes of being paid when producers were. The delay, in some cases, stretched on for months. The Agriculture Ministry is acting sure-handedly on at least one thing-cracking down on counterfeit production. The vow is that no faux wines or shoddily-brewed grog will be made with Georgian appellations, either in this country or abroad. The campaign is only beginning, however, and despite high fines and well-publicized raids, the problem is far from stamped out. Any enforcement effects won't be felt for this vintage. Georgian officials
can't say how much wine will be called for this year. If it's not enough-and
it won't be enough-last year's scenario will replay itself, as businessmen
and state organizaitons, reluctant to fall out of good graces, will
be compelled to buy as much of the harvest as they can. They can look
forward, at least, to brewing plenty of the home-made stuff for the
year ahead. |
Farmers
fearful of fattening grapes as administration anticipates action