No problems with grapes procurement expected

Despite the problems facing wine and cognac producers, no problems in laying-in of grapes are expected as the problem of export is being resolved, Armavir Governor Ashot Ghahramanyan told Tert.am.

“We had price fluctuations because of the Russian ruble, and exporting was inadvisable. They wanted to pay in terms of rubles, while our producers wanted US dollars. But the problem seems to be gradually settled, and we are going to resume export soon,” Mr Ghahramanyan said.

He does not expect any price changes.

“By estimate, the price is AMD 150 ($0.3) per kilo. I do not think it could be even lower. We are doing our best for our farmers to be able to sell their products with profit. And if we can do it, I think emigration is out of the question,” Mr Ghahramanyan said.

The local authorities are not concerned over possible problems with laying-in of grapes in the Armavir region.

“Armenia’s minister of agriculture and Armenia’s prime minister have met with farmers and decided to lay-in all amount,” the governor said.

Chairman of the Union of Winemakers Avag Harutyunyan told Tert.am that it is too early to speak of accurate statistical data is available yet.

“We have an unfavorable export balance. That is, we are exporting less during the reporting period against the corresponding period last year,” he said.

According to him, the problem caused by Russian ruble fluctuations will be settled during the next few years.

“The ruble has stabilized, but its purchasing power is down,” Mr Harutyunyan said.

Speaking of laying-in of grapes, he does not think the price for grapes will be reduced. But terms of payment will be shortened.

“The government promised funds, but has no so far done it. But I think they will keep their promise.”

Despite problems with exporting, companies continue exporting their products. They are ready to sustain losses only to retain their markets.

“Some companies are operating in the red, and very few companies are getting profit. All of them are seeking to retain their markets until the ruble stabilizes,” Mr Harutyunyan said.

As regards the price, only one contract has been signed.

“As far as I know the price for grapes for cognac production will be AMD 145-150. But the price for wine production is not yet known.”

A plenteous grape harvest is expected this year.

“As much grapes is sure to be laid-in this year as was last year. As to whether the harvest will exceed last year’s, we can see it this October. To ensure last year’s amount, Armenia’s government is seeking to procure a US $100m loan for factories. But I do not think anything will be lost even if this year’s harvest is larger than last year’s. The problem is a traditional rises AMD 5 rise in the grapes price. However, this year it will not rise, and farmers will be paid later, until December 30.”