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From The Grapevine: Production Expected To Be Rich For Winemakers

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  • From The Grapevine: Production Expected To Be Rich For Winemakers

    FROM THE GRAPEVINE: PRODUCTION EXPECTED TO BE RICH FOR WINEMAKERS

    http://armenianow.com/news/48540/armenia_winemakers_cognac_brandy_customs_union
    NEWS | 17.09.13 | 16:43

    Photolure

    By Gohar Abrahamyan
    ArmeniaNow reporter

    President of the Winemakers' Union of Armenia says this year will
    see excellent yield of grapes, and the procuring companies will work
    efficiently with timely payments to suppliers.

    Avag Harutyunyan, head of the Winemakers' Union, told the press on
    Tuesday that by official data the 45 grape procuring companies of
    Armenia will purchase around 240,000 tons of crops, 160,000 of which
    is to be used for food and drink production.

    Harutyunyan says there are around 10 companies currently operating
    in the field, which have purchased around 10,000 tons of grapes,
    and starting September 20 all the companies will join the process.

    "We have excellent, healthy crops of high quality. This is the last
    year of the transition period when the farmer is asking to buy his
    grapes. This year a process has commenced that would lead to next year
    us asking to buy grapes from the farmer. This is a crucial time for the
    Armenian grape market," he says, adding that grape procurement prices
    start from 145 drams (around 35 cents) per kilo and says he believes
    the price will not drop, because if farmers had tens of hectares of
    vineyards, the price would be justified, but now a farmer in Armenia
    has the average of half a hectare of land with 70-80 quintal (100
    kilograms) crops-yielding capacity, hence the profitable price for
    him would have been 180-200 drams (around 43-48 cents) per kilo.

    According to Harutyunyan, there will not be any problems with
    the purchasing companies, because since last year the government
    and the presidential staff have been overseeing payments and all
    the companies, for the exception of only one or two, have met the
    incurred liabilities.

    In reference to joining the Customs Union, he says wine will not pose
    a problem, however things are different with the Armenian brandy,
    because 95 percent of it is consumed by the CU member countries while
    a third country, namely France, dictates the rules in this game.

    "The Association Agreement would allow us to use the word 'Cognac'
    in the Armenian market, the right to use 'cognac' term in the Russian
    market is the privilege of Russian-French relations. They may reach
    an agreement any moment, and in that case our presence in the Customs
    Union would largely depend on them," says Harutyunyan, adding that
    if Armenian cognac is not granted access in the CU, there won't be
    enough demand for it to match today's volumes of production.

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