Chairman at Union of Winemakers: The situation is dire
“Grape processing companies are in dire situation, since they haven’t sold 10% and 30% of the harvest of the past two consecutive years. No resources to take credits are available. Farmers have not been paid for more than a year. Expectations for his year are even worse,” Avag Harutyunyan, Chairman of Union of Armenian Winemakers, stated at a discussion devoted to the problems of the sphere.
He stressed that villagers make populist shows out of the grape procurement.
“25 years ago farmers were gifted received 25 thousand ha land. Over 25 years they never though of diversifying the market. We are selling cognac twice below the cost, fight for each cent. Today the government forces us to procure grapes from the farmers at a certain price. The situation amounts for an absurdity. The farmers had 25 years for thinking. They failed, instead preferring to protest and close roads,” Harutyunyan said.
Avagyan next informed that a bottle of wine is sold at 1,5 USD, with a cost of 2,5-3 USD which is done to secure their place in the market.
“Over the past three years wineries didn’t get 300 million USD from the market. Imagine that, while our debt to the farmers amounts for 800 million AMD,” maintained Harutyunyan.
The Chairman of the Union of Winemakers next said they are looking for Muscat grape and ready to pay 400-500 per kilogram.
Harutyuned suggested the farmers to unite and establish trade unions
“What is the reason for 40 thousand village households struggle on their own, while it is possible to establish a union with a layer representing the interests of 25-30 farmers, go to court and receive the money according to the norms of the business world,” concluded Harutyunyan.