Business news from Ukraine

Business news from Ukraine

Last year Ukraine reduced the area under vineyards by almost a quarter

9 April , 2023  

Plantations of grapes in Ukraine in 2022 decreased by 23.3% to 26.6 thousand hectares, some enterprises were plundered, destroyed or mothballed, said the head of the public association “Ukrsadvinprom” Volodymyr Pechko at a press conference in the agency “Interfax Ukraine” on Thursday.

“In 2021 in Ukraine there were about 266 industrial producers of grapes and wine, 125 viticultural enterprises, 29 small producers of grapes and viticultural products. They worked on 34.7 thousand hectares … According to 2022, the area of vineyards decreased to 26.6 thousand hectares,” he said.

Pechko specified that 33 employees were permanently involved in processing of each hectare, each enterprise employed 250 people on average.

According to him the gross yield of grapes last year was 244 thousand tons with the yield capacity of 92 cwt/hectare.

According to the head of Ukrsadvinprom, the situation is also complicated by a significant deterioration of the trade balance of wine products, which occurred before the war. In 2021, Ukraine exported $16.4 million worth of wine products, and imported $215.4 million.

“If you compare the pre-war figures with imports in 2016, when it was $85.3 million in cash equivalent,” Pechko expressed regret.

At the same time, Deputy Minister of Agrarian Policy and Food Markiyan Dmitrasevich noted that the state, having opened the land market, gave an impetus to the development of viticulture as an industry.

“When you become an owner of land, you get the opportunity to invest thousands of hryvnias in vineyards. This is a long-term investment that will work for many years,” he said.

According to him, despite the reorientation of the state budget for military needs, salaries and social payments, it remains possible to get funding for the establishment of vineyards and orchards this year.

“As we can see from the trade balance, Ukraine has a significant imbalance towards imports. The market is huge. I urge all enthusiasts who want to plant vineyards to do so. We should get used to domestic wine. It does not only bring profit to the industry, but also employs a huge number of people, “- said Deputy Minister of Agrarian Policy.
According to the moderator of the press conference and the deputy head of the public association “Ukrsadvinprom” Maxim Urakin, in the current realities it is extremely important to apply the status of winemaking to all regions of Ukraine.

“Granting the status of winemaking regions to all regions of Ukraine without exception is especially relevant in connection with the displacement of viticulture in the central and western regions of the country, where dozens of winemakers are already working effectively; the status of winemaking region will allow winemakers to claim assistance, technology, benefits,” – said Urakin.

Full video of the press conference is available here: