The Verkhovna Rada of Ukraine has adopted in the second reading a draft law on support for the development of viticulture and winemaking, said Acting Minister of Agrarian Policy and Food Taras Vysotsky.
“I am grateful to the people’s deputies for their unanimous support for the development of viticulture and winemaking! Bill 9139 – 311 votes in favor,” he wrote on Facebook.
The draft law “On grapes and viticulture products” (No. 9139), which the government registered in the Verkhovna Rada on March 22, is aimed at implementing the relevant EU regulations on viticulture and winemaking, oenological practices, production of flavored wine products, use and protection of geographical indications of wines.
“At the same time, the purpose of the draft law is to create a unified state information system, the Viticulture and Winemaking Register, which will include information on: grape producers; wine products; vineyards; mandatory declarations and other data on wine products provided for by this law, the entry of which is mandatory, which will ensure effective administration and state support for the viticulture and winemaking industry,” the explanatory note to the document says.
The document envisages the introduction of requirements for the production and circulation of wines, viticulture and winemaking products, and flavored wine products with geographical indications similar to current rules in the EU. In particular, it is not allowed to blend wine produced in Ukraine with imported wine, as well as wines produced outside Ukraine.
The draft law provides for the possibility of state support for viticulture and winemaking within the framework of the general laws “On State Support for Agriculture” and “On Peculiarities of Insurance of Agricultural Products with State Support” without any details, except for the principles of objectivity, equality and proportionality.
The document contains the principles for conducting inspections of wine production from the vineyard to the final product, defines the controlling institutions and their powers, and specifies sanctions, according to the explanatory note.
The Cabinet of Ministers has amended the procedure for providing grants for the establishment of horticulture, berry and viticulture, as well as the development of greenhouse farming, which are aimed at the recovery of the grape and wine industry, the Ministry of Agrarian Policy and Food reported.
“Viticulture is a key industry that is now in stagnation. Therefore, realizing these conditions, we have updated the grant procedure. The changes will help winemakers integrate into the grape vertical. They will be able to use the grants to plant their own vineyards. We have also eliminated the mandatory requirement to install irrigation systems and water intake for grapes,” – commented on the Government Resolution No. 871 adopted by the Acting Minister of Agrarian Policy and Food Taras Vysotskyi.
According to his information, the order of granting grants for the establishment of horticulture, berry growing and viticulture presents an expanded list of regions for growing stone fruit species. The total area for planting peach, apricot, sea buckthorn, raspberry, currant, gooseberry, blackberry, currant has been increased at the expense of reducing the total area of planting under pigeonpea and blueberry. The document also clarifies the period during which a garden grant recipient is required to create an appropriate number of seasonal jobs. In addition, the requirement to install an irrigation system and water intake for grapes has been eliminated.
The decree expands the range of potential recipients of grants for orchards and greenhouses. They can be agrarians who are located and carry out economic activities in the territories of active hostilities, where the state electronic information resources are functioning, produce (without adding alcohol) and / or sale of wine grapes, fruit and berry, honey drinks.
The decree shall come into force from the date of its publication.
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The Cabinet of Ministers has amended the procedure for granting grants for the creation and development of horticulture, berry growing, viticulture, and greenhouse development.
According to Taras Melnychuk, a representative of the Cabinet of Ministers in the Verkhovna Rada, on Telegram, the decision was made at a government meeting on Friday.
According to the report, the changes improve the mechanisms for supporting business entities operating in the relevant industries.
It is expected that the grant recipient will create jobs and employ full-time employees and pay them the mandatory minimum wage for such specialists.
In addition, the list of conditions for canceling decisions of the Ministry of Agrarian Policy has been expanded, in particular, in case the recipient unilaterally closes its bank account and in case of violation in the transfer of its entire share of co-financing within 30 days after the conclusion of the agreement.
The Cabinet of Ministers has clarified the number of employees required to provide grants for the establishment or development of greenhouse facilities and shortened the list of regions for almond planting.
Director General of the International Organization of Vine and Wine Industry (IOVI) Pau Roca thanked representatives of the Ukrainian wine industry for the work done to restore Ukraine’s membership in this international structure.
“In this difficult time that Ukraine is going through and in this difficult situation, we focus on the promotion of Ukrainian winemaking in the world. The fact that Ukraine joined our interstate organization is a very important step at this very period. This step will bring results in the near future”, – stressed the Head of IGOV at a press conference in the news agency Interfax Ukraine.
In turn, the Deputy Minister of Agrarian Policy and Food of Ukraine Markiyan Dmytrosevych also noted the importance of Ukraine’s membership in IGOV, as this organization currently unites 85% of the world’s specialists in the field of viticulture and winemaking, as well as represents the interests of 80% of consumers.
“The International Organization of Winegrowing and Winemaking is primarily a platform for the exchange of experiences in the promotion of wine products. Membership in IGOV and work in its committees will give Ukraine the opportunity to be aware of all the changes and directions of development of the industry, which, in turn, is important in the context of European integration of our country, “- said Dmitrasevich.
Speaking about the consequences of war for the sector, the Deputy Minister said that, according to the estimates of the World Bank and experts of the Institute of International Economics, the cost of destroyed, stolen, damaged property in the agricultural sector is $8 billion. With the rest of the indirect losses – lost profits, unfulfilled contracts – the total damage from military action reaches 40 billion UAH.
“If perennial plantations are destroyed, it will take years to recover. After the human losses such losses are the most painful for us and for the industry”, – he stressed.
In addition, M. Dmitrasevich recalled the possibility of attracting state grant program for the establishment of new vineyards.
The head of the public association “Ukrsadvinprom” Volodymyr Pechko noted that in 2021 in Ukraine officially there were about 266 industrial producers of grapes and wine, 125 winegrowing enterprises, 29 small producers of grapes and wine products.
“About the figures, to process each hectare involved 33 employees on a permanent basis, each enterprise employed an average of 250 people. Thus, the employment rate in viticulture and horticulture in Ukraine is one of the highest compared to other industries,” stressed the industry representative.
Pechko also thanked the Ministry of Agrarian Policy for implementing an industry support program and providing grants to winemakers in both 2021 and 2022.
“The state’s support of planting vineyards even in this difficult time will allow not only to preserve the industry in the future, but also to expand vineyard planting areas,” he said.
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 extend 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.
According to the deputy head of “Ukrsadvinprom” on international relations Natalia Burlachenko, the main purpose of the renewal of membership in the IOVV is the popularization of the Ukrainian product.
“First of all, we want to show what heights and quality Ukraine has achieved, despite the realities in which we live. This is an important platform to sound to the world. It is an opportunity not only virtually but also offline to communicate with foreign colleagues and show that Ukrainian wine exists, exists and will become more competitive in the future,” she said.
Ricardo Nuñez, owner of the Vinos de La Luz wine company and investor in Ukrainian winemaking, stressed that Ukraine needs a state program for the development of winemaking to bring the industry to a new level of development after the war.
“In February 2022 the dynamic development of the wine industry in Ukraine came to a halt. Many Ukrainians, including those involved in winemaking, left their homes. But they will return with the knowledge and experience gained outside the country. They must be prepared for new opportunities”, the winemaker said.
Ricardo Nunez presented the novelty of the season – a red dry wine Big Wines Big Art, which was produced from the grapes of Odessa black vintage 2020 grown in the Rhenia district of the Odessa region. The first batch of 1,000 bottles was produced at the facility in the Kyiv region. A well-known artist Ivan Marchuk was involved in the work on the new Ukrainian wine, who provided his painting “Awakening” symbolizing the revival of Ukrainian winemaking after the war, said Ricardo Nuñez.
Speaking about the future recovery of the industry the winemaker reminded that development always begins with the emergence of many small producers who become the basis for the creation of large enterprises.
“I am the first investor in the winegrowing and winemaking industry in Ukraine during the war. I am working on wine production right now. My task is to teach Ukrainians to drink their own wine. Then the country will have a great and great industry,” he said.
Representatives of Ukrsadvinprom handed over the flag of the International Organization of Vine and Wine Making to the Ministry of Agrarian Policy of Ukraine.
The International Organization of Vine and Wine (IOVV) is the successor of the International Bureau of Vine and Wine, which existed from 1924 to 2001 and today unites 49 countries. It is this organization that develops the standards of world winemaking. IOVW consists of four committees – viticulture, enology, economics and law, safety and health. Ukraine will be represented in the international organization by a delegation, which consists of representatives of the Ministry of Agrarian Policy, the Institute of Viticulture and Winemaking named after Tarov. Ukraine will be represented by a delegation consisting of representatives of the Ministry of Agrarian Policy and the Winemaking Institute named after Tairov, members of “Ukrsadvynprom”.
The Vinos de La Luz Group has wineries in Old and New World wine-growing regions, in particular, in Spain, Italy, Argentina and the USA, where it produces wines under the Vinos de La Luz brand.
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The Ukrsadprom association has appealed to the Cabinet of Ministers and the Ministry of Agrarian Policy and Food with the request to increase funding of the program for the development of viticulture, horticulture and hop growing by the end of this year to meet the demand of farmers.
“Ukrsadprom records an extremely high demand on the part of gardeners for state support, the peak of which will be in the autumn planting season. And it is clear today that the demand of gardeners will significantly exceed the supply of existing support,” the association’s press release said.
In this regard, according to the decision of the association council of August 11, 2018, an appeal was sent to the Cabinet of Ministers and the Ministry of Agrarian Policy and Food by the end of this year to increase funding for the program to meet the demand of farmers and expand the list of priority directions of state support, adding articles related to storage and pre-sale preparation of grown products.
“Considering high demand on the part of gardeners for participation in the support program, as well as the need to attract modern technologies to the industry and ensure sustainable development, Ukrsadprom suggests significantly increasing the amount of financing for the program in 2019 to ensure the rapid introduction of storage and pre-sale preparation facilities for Ukrainian fruits and berries,” the association said.
