{"id":1355,"date":"2005-06-11T12:08:41","date_gmt":"2005-06-11T08:08:41","guid":{"rendered":"http:\/\/geoeconomics.ge\/en\/?p=1355"},"modified":"2013-03-11T12:09:04","modified_gmt":"2013-03-11T08:09:04","slug":"who-will-own-georgian-wine-making","status":"publish","type":"post","link":"http:\/\/geoeconomics.ge\/en\/?p=1355","title":{"rendered":"Who will own Georgian wine-making"},"content":{"rendered":"

SOFO SITCHINAVA <\/strong><\/p>\n

If we look at the export geography of Georgian wine we shall see a rather gloomy picture, from the viewpoint that our consumers are former Soviet republics and 74% of wine export falls on Russia. They, probably, remember Georgian wine very well and appreciate it. <\/p>\n

But as the time goes by, the export is reducing, which indicates that falsified Georgian wines can\u2019t find new consumers not only abroad but on traditional markets as well, for example in Russia. At the same time Georgian wine has a possibility to be the main agricultural export commodity.
\n Presently, out of six bottles of Georgian wines, only one is produced in Georgia and the remaining five ones \u2013 outside our country. Thus, the problem is not only in effective struggle against falsification inside the country, but abroad as well. Proceeding from this, until a strong player appears in this sector that will be interested in protection of foreign market against falsification without spending much money for this purpose, the problem will not be solved. According to the statement of the State Minister Kakha Bendukidze, the state will not be able to do it, it can only support business and render assistance to it by means of diplomatic channels and intergovernmental relations, but without somebody\u2019s private interest and only by means of correspondence between the governments, the problem cannot be solved.
\n How the regulation of wine-making in Georgia should proceed, to what extent the government is involved in this process, how self-regulation in the sector should occur, how the main problem of falsification can be solved when wine is made without grapes, how to protect the quality of Georgian wine abroad, is licensing and certification necessary \u2013 by these issues the Chamber of Commerce and Industry rallied wine-makers and representatives of the government.
\n The Chamber of Commerce and Industry has held many meetings on the wine-making issues. The producers were speaking directly to those people on whose decision will depend what the mechanism of the sector\u2019s regulation will look like.
\n At first glance bad trends are not evident, over the past five years growing of vineyard areas can observed, whereas since 1985 they have been reducing all the time. The number of small and medium-size companies in the sector is growing and correspondingly the employment in wine-making is growing too.
\n In spite of the fact, as it was mentioned above, that in total the largest part of Georgian wine export falls on Russia, by the example of private companies, for instance \u201cTbilvino,\u201d the picture is much better. Here Russia occupies a smaller place. Presently \u201cTbilvino\u201d company operates on fifteen export markets. As its head Giorgi Margvelashvili says, there is a niche for Georgian wine in Western Europe, may be it is small for others but for Georgia it is rather big. Giorgi Margvelashvili: \u201c West European countries are interested only in one thing \u2013 how strong the legislation on wine-making in your country is, and how strong administration and certification are. Without it a country is not considered as a serious one in wine-making field. Probably licensing will be eliminated and it will be not obligatory but voluntary, however certification must be compulsory for those wine brands that Georgia has. Absence of obligatory certification for these wines will lead to price drop, they will become cheaper and in doing so we will revive falsification.
\n Wines of local produce occupy a big part in our portfolio. We implement 37% of quantitative sale, including 11 names of locally produced wines, though in money terms it is a rather bid indicator \u2013 74%.
\n We believe that the price will drop and the mentioned 74% will be reduced if there is no obligatory certification of these wines, and if alienation of geographical names takes place this indicator will be equal to zero\u201d.
\n The idea of alienation of geographical names triggered indignation among the producers. According to their statement, the state must have a single concept for the producers to know how the state treats wine-making industry, so that they, even in three years, would be insured against such surprises as liquidation of certification and alienation of geographical names. In accordance with the producers\u2019 statement, Georgia is a member of the organization for protection of intellectual property, Paris convention, and Lisbon agreement. It is necessary to check how this idea corresponds to all this; in spite of everything, in wine-makers\u2019 opinion, it will be a losing decision from viewpoint of marketing.
\n Giorgi Margvelashvili: \u201cBelieve me that if there existed only one producer of \u201cBordo\u201d it would be rather dull. Any wine-making region is interesting only when several different producers are represented there. It may cause export reduction and have a negative impact on the existing tendency of expanding vineyard areas. The subject of wine tourism is very actual now and it is a growing industry in the world, its introduction in Georgia will remain unrealized since a tourist visits a region to see 0 wide variety of products. Now in Georgia there are honest producers that produce wines of local names and they have financial obligations to financial institutions that they will not be able to fulfill them\u201d. It is clear that the bodies that regulate wine-making in Georgia are unable to cope with all the problems that exist in this sector. The producers have come out with the proposal to introduce a symbolic payment for one produced or exported bottle in the amount of 1 or 2 cents. This sum will be used for target financing of the bodies regulating wine production.
\n Today the state does not have a mechanism to regulate wine-making sector. In Bendukidze\u2019s opinion, it is necessary to implement serious reforms in the sector, since wine should become the main agricultural export product.
\n If we compare Georgia\u2019s export indicator to the one of Slovenia whose territory is twice as small, we will see that it exports five times more wine than Georgia. Slovenian wine is not very famous but the country makes efforts to have a big export. Unlike Australia, East Africa, Chile, or Argentine that mainly grow grapes of Italian and French sorts, in Georgia we have unique brands that need special care.
\n The state, in the minister\u2019s opinion, will not solve the problem of wine export only by eliminating falsification. If each brand of wine does not acquire a real owner the sector will be ruined.
\n Kakha Bendukidze: \u201cFinding of the owner is a tool for solving two problems: it will contribute to development of the sector\u2019s economy and to the development of traditional wine making regions. It will also help to protect the interests of people in those regions were wine production already exists. Our objective is to find an owner who will meet all these requirements. It must be a person who will bear responsibility for the product, and having necessary potential, technologies and finances.
\n If, for example, all farmers and wine-makers that produce \u201cKhvanchkara\u201d unite and invest money and use it properly, it will be an absolutely right model.
\n According to one model, only one company assumes responsibility, but its budget must not be limited to 5 thousand GEL. With this money it will not be able to take care of wine and protect it against falsification abroad. In any case one person or a group of persons assume responsibility on the condition that they, for example, produce wine of a definite name and that they do not produce this wine elsewhere. They also have to assume responsibility for the volume of the grapes purchased. They must assume a certain part of responsibility for good, and the other one for many years. And besides, they must have a business plan.\u201d
\n Zurab Nogaideli (the Prime Minister of Georgia): \u201cIn Georgia there must be a laboratory for solving the main problem \u2013 to determine whether the wine was produced of grapes or not. If now the laboratories can\u2019t do it, we have to create such laboratories in the nearest future. The problem of falsification persists both in Georgia and abroad. We all know that as soon as we start to keep down falsifiers inside of the country growth of falsification outside the country will immediately begin. We had a discussion on this subject and I was more interested to know wine-makers\u2019 point of view: what would be more effective \u2013 to remain within the framework of local production model and, correspondingly, if it possible to create a single collective mechanism of the state and producers that would protect Georgian wine against falsification abroad, and inside our country we would carry out this control ourselves; or we should accept a brand model when it would be definitely determined as to who deals with these problems. There must be a combination of actions, since if these processes are left without attention, and I am sure not to put up with it, means that we gradually enter the crises of wine selling on the world market.\u201d
\n The task of the state is to provide that the created system will be effective, practicable, and non-corrupt. The government looks upon certification with fear because it will have to control everything, from vine sprouts and watching peasants\u2019 every step to production, which is a complex mechanism. The government must be absolutely sure that no problems will arise in this respect. The point is that a system, which brings more losses than profits, is not worth creating. In Georgia there must be created a mechanism based on private interest and supported by the state, and details of its structure will be a subject of discussion and agreement. Though it must be said in advance, that somebody\u2019s interests will not be realized as well as they would like it happen but the interests of the people working in this sector should always be taken into account. <\/p>\n","protected":false},"excerpt":{"rendered":"

SOFO SITCHINAVA If we look at the export geography of Georgian wine we shall see a rather gloomy picture, from<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[36],"tags":[],"yoast_head":"\nWho will own Georgian wine-making - Geoeconomics<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"http:\/\/geoeconomics.ge\/en\/?p=1355\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Who will own Georgian wine-making - Geoeconomics\" \/>\n<meta name=\"twitter:description\" content=\"SOFO SITCHINAVA If we look at the export geography of Georgian wine we shall see a rather gloomy picture, from\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\">\n\t<meta name=\"twitter:data1\" content=\"7 minutes\">\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/geoeconomics.ge\/en\/#website\",\"url\":\"https:\/\/geoeconomics.ge\/en\/\",\"name\":\"Geoeconomics\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":\"https:\/\/geoeconomics.ge\/en\/?s={search_term_string}\",\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"http:\/\/geoeconomics.ge\/en\/?p=1355#webpage\",\"url\":\"http:\/\/geoeconomics.ge\/en\/?p=1355\",\"name\":\"Who will own Georgian wine-making - Geoeconomics\",\"isPartOf\":{\"@id\":\"https:\/\/geoeconomics.ge\/en\/#website\"},\"datePublished\":\"2005-06-11T08:08:41+00:00\",\"dateModified\":\"2013-03-11T08:09:04+00:00\",\"author\":{\"@id\":\"https:\/\/geoeconomics.ge\/en\/#\/schema\/person\/c8498c0ae03a66c87b59761fbd19b04c\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"http:\/\/geoeconomics.ge\/en\/?p=1355\"]}]},{\"@type\":\"Person\",\"@id\":\"https:\/\/geoeconomics.ge\/en\/#\/schema\/person\/c8498c0ae03a66c87b59761fbd19b04c\",\"name\":\"Admin\",\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/geoeconomics.ge\/en\/#personlogo\",\"inLanguage\":\"en-US\",\"url\":\"http:\/\/2.gravatar.com\/avatar\/bf2d8703d729f003d8905b57fcab5078?s=96&d=mm&r=g\",\"caption\":\"Admin\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","_links":{"self":[{"href":"http:\/\/geoeconomics.ge\/en\/index.php?rest_route=\/wp\/v2\/posts\/1355"}],"collection":[{"href":"http:\/\/geoeconomics.ge\/en\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/geoeconomics.ge\/en\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/geoeconomics.ge\/en\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/geoeconomics.ge\/en\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1355"}],"version-history":[{"count":1,"href":"http:\/\/geoeconomics.ge\/en\/index.php?rest_route=\/wp\/v2\/posts\/1355\/revisions"}],"predecessor-version":[{"id":1356,"href":"http:\/\/geoeconomics.ge\/en\/index.php?rest_route=\/wp\/v2\/posts\/1355\/revisions\/1356"}],"wp:attachment":[{"href":"http:\/\/geoeconomics.ge\/en\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1355"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/geoeconomics.ge\/en\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1355"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/geoeconomics.ge\/en\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1355"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}