Your trusted source

Armenian wineries and other processing enterprises do not concluded contracts with farmers which seems to be priority issue in the sphere, Artak Sargsyan, Chairman of Armenia’s Union of Viticulturists told a press conference.

“Processing companies should be abided by mutually beneficial and legally binding contract obligations. Except Yerevan Brandy Company, no other enterprise conclude contracts,” he noted.
Sargsyan stressed that in the occurred situation the grape-growers have no idea at what price, how much, when and who would procure grapes from them.

“These are important questions, the basics of the sphere of viticulture,” the chairman of the Union maintained.

He recalled that after the 2015 situation they hoped the matter would be solved, yet ahead of the harvesting in 2016 many of the problems remain unaddressed.

“Many viticulturists raise the issue of a fake and cheap raw materials available in the market, which make them uncompetitive. We should establish equal field for the processing enterprise to encourage to buy raw material form the villagers,” Sargsyan said.

He next suggested that state assistance and subsidiary are needed to address the matter, since the sphere is vulnerable to risks. As of September 9, he said, no payment has been received for the processed grape.

“By our estimates, at this point companies’ debt now standing for 1.5 billion of AMD. Viticulturists have been working to sell their product to meet social needs, my request is pay the accumulated debt during harvesting.”

Sokhak Hovhannisyan, grape-grower form Nor Amasia community, said he owns a land of 5 under cultivation. The first harvest he delivered last year and was paid for, yet all the subsequent deliveries were not paid.

“Thus far we have not been paid. They say we will call when means are available. Noticeably, we have no contracts. We have turned into TV starts, looking for microphones to rush and complain, yet there is still no solution,” the farmer said.