Home / Business / Gruzvinprom has Signed a 15-year Contract with China’s Largest Company
Gruzvinprom has Signed a 15-year Contract with China's Largest Company

Gruzvinprom has Signed a 15-year Contract with China’s Largest Company

The wine industry is expecting more harvest this year comparing to the previous one (2016 -118 000 t, 2014 -148 358 t, 2013- 123 000 t).

The minister has already announced about the withdrawal of subsidies on grapes. However, the farmers will not have any grape remain unsold.

Levan Davitashvili noted the signing of a 15-year cooperation memorandum between the Chinese largest company (Zongang Province, City Nanchani) and “Gruzvinprom“. The increase of production capacity was announced last year after a private investor arrived there. To remind, the state enterprise was sold in the summer of 2015, the selling price exceeded the initial cost (11.6 million) 3 times and the figure amounted to 31.1 million GEL.

Gruzvinprom owns land area of 46 906 square meters and 26 buildings, locating in Gurjaani. The enterprise has large reserves of alcohol. Increasing the local production of brandy spirit takes into account the new strategy of agriculture that involves deviating from 45 degrees from ultra-leftism and making original and unexpected steps.

The production of brand spirit is the only one which will have an access on cheap agriculture loans. Amendment of the legislative base is also begun. The Parliament adopted changed with the first reading on the usage of 50% local spirit. However, the amount will be increased up to 100% after 2018.

The minister also announced the highest export potential of brand spirit, not only in drinking but also in chocolate production. All countries are considered as markets, where Georgian wine and brand will pass through.

The Minister emphasized the importance of mastering China’s export market in terms to cover the prospect of the South East countries. This year, China expects export of 10 million bottles, which is equal to the peak of Ukraine, and it is already a breakthrough. China will follow by Japan, however the Minister predicts that it will need 5 years and the following  market is South Korea.