Business news from Ukraine

Business news from Ukraine

Ukrainian winemakers already developing local grape varieties as foundation of new wine identity

The development of local grape varieties in Ukraine is already moving from the level of professional discussion to practical implementation and is becoming one of the key areas for enhancing the competitiveness of Ukrainian winemaking, building regional brands, and promoting high-value-added products in domestic and international markets.

This was discussed during the National Roundtable “Local Grape Varieties: Heritage, Sustainability, and Rural Development,” organized by the UKRSADVINPROM Association to mark the 10th anniversary of the Association’s activities.

Participants in the event noted that local grape varieties are already becoming for Ukrainian producers not only an agricultural resource but also an element of cultural heritage, regional identity, and the future export specialization of Ukrainian winemaking. It is precisely around these varieties that the new identity of Ukrainian wine is taking shape—with its own history, origin, taste, and distinctiveness.

Volodymyr Pechko, Chairman of the “UKRSADVINPROM” Public Association, emphasized that Ukrainian winemaking already has its own foundation for development, and this foundation is linked to the promotion of domestic grape varieties. According to him, the flagship and ambassadorial varieties of Ukrainian wine could be, first and foremost, “Odesa Black” and “Sukholymansky,” which reflect Ukrainian breeding, authenticity, and the country’s wine identity.

Special attention was given to the creation of a Vineyard Register and the conduct of a comprehensive inventory of vineyards in accordance with EU approaches. This work is intended to serve as a practical foundation for Ukraine’s further integration into the European system of support for viticulture and winemaking, as well as for the potential use of EU financial instruments following the country’s accession to the European Union.

Pechko also reported that approximately 10,000 hectares are currently under vineyards in Ukraine. According to him, the reduction in vineyard acreage requires additional attention from the government and the industry, as it is impossible to ensure the stable growth of winemaking without preserving and developing the raw material base.

Interest from retailers and the HoReCa sector in local producers is already becoming an important factor for the Ukrainian wine market. Olena Gordon, a representative of the “Ukraine Food Retail Alliance” (UFRA)—which includes leading Ukrainian food retail chains such as ATB-Market, Silpo, VARUS, NOVUS, and KOLO—noted that local producers can enter retail chains provided they meet standards and are ready to scale up production.

This factor is particularly important for craft wineries, which are already creating a strong local product and have their own history, but face the chains’ requirements regarding supply stability, quality, safety, documentation, and production traceability.

Representatives of the restaurant and hotel sectors, in turn, noted that Ukrainian consumers’ interest in domestic wines is already growing. There is potential for promoting Ukrainian wine both domestically and abroad; however, strengthening the industry’s position requires systematic promotion—participation in international exhibitions, professional presentations, tastings, and “blind tastings,” which allow for an objective demonstration of product quality.

Wine tourism is already emerging as a distinct promotional tool. Festivals, tastings, and the development of wine routes help forge an emotional connection between producers and consumers, introduce Ukrainian wine to a wider audience, and create additional opportunities for the development of rural areas.

According to the participants, craft winemaking requires a distinct approach to regulation and development, as it cannot be evaluated using the same criteria as mass industrial production. For the sector to grow, it is important to foster a culture of Ukrainian wine consumption, support local producers, and develop the domestic market, which can serve as a foundation for future exports.

Mykola Patyka, Vice President of the National Academy of Agrarian Sciences of Ukraine, highlighted the role of science in preserving and developing the genetic potential of Ukrainian grape varieties. Scientific support, breeding, research into the adaptability of varieties, and work with genetic resources are essential for ensuring that local varieties become not only part of the country’s heritage but also a competitive product in the modern market.

The development of local grape varieties is already laying the groundwork for the emergence of new regional brands and geographical indications, the revitalization of rural areas, and increased recognition of Ukrainian products in international markets. For the industry, this means a shift from the general idea of promoting Ukrainian wine to a more specific model—one with its own varieties, origin, history, quality standards, and distribution channels.

The “UKRSADVINPROM” General Association is an industry association operating in the fields of horticulture, viticulture, and winemaking. The organization brings together market participants, takes part in industry discussions, promotes the interests of Ukrainian producers, and supports the development of high-value-added products. In 2026, the Association celebrated its 10th anniversary.

, , , , ,

Number of wine producers in Ukraine has exceeded 180

The number of wine producers in Ukraine currently exceeds 180, with a significant increase in the number of small-scale winemakers, according to Taras Vysotsky, Deputy Minister of Economy, Environment, and Agriculture.

“Today, Ukrainian winemaking is no longer limited to the domestic market. It is becoming part of a global dialogue—an instrument of cultural diplomacy and trust in Ukraine around the world,” he wrote on Facebook.

The deputy minister expressed confidence that it is important to foster a culture of consuming domestic products in Ukraine. It is through specialized venues that Ukrainians can better appreciate the quality and uniqueness of domestic wine.

Vysotsky noted that a series of deregulatory measures has contributed to the industry’s development. In particular, the annual fee for a wholesale trade license for small producers was abolished, and an affordable production license was introduced. In addition, the government simplified licensing procedures, abolished excise tax stamps, and reduced the bureaucratic burden of reporting. These changes gave a boost to the development of craft winemaking in particular.

The Deputy Minister also announced that the first official wine boutique—Wine of Ukraine—has opened in Kyiv, which will serve as a platform for direct access to products from producers. The opening was attended by representatives of the diplomatic corps of Italy, Portugal, Argentina, Egypt, India, Pakistan, and other countries, as well as international organizations, including the FAO.

,

Wine consumption in Europe will decline – forecast

The European Commission expects wine consumption in Europe to decline by 0.9% annually over the next nine years, according to a report by the EC cited by the newspaper Le Figaro. According to the document, by 2035, wine consumption by European citizens over the age of 16 will decline from 21.2 liters per capita per year to 19.3 liters.

According to the International Organization of Vine and Wine, the main consumer of wine in Europe is France, followed by Italy, Germany, and Spain. According to a 2023 study by the Vin et Societe association, wine consumption in France has already declined significantly: while in the 1960s the figure was 127 liters per capita per year, the latest data shows that per capita consumption in France is now 40 liters per year.

The EC explains this trend by the fact that “consumers are concerned about their health, and also because national policy calls for moderate alcohol consumption.” In addition, the decline in consumption may be due to “changes in consumer habits and preferences.” Also, preference is often given to quality rather than quantity.

 

,

During war, about 70 new wineries appeared in Ukraine

During the war, about 70 new wineries appeared in Ukraine, which was made possible by significant improvements in legislation, according to Volodymyr Pechko, head of the Association of Gardeners, Winegrowers, and Winemakers of Ukraine.

“Over the past 4.5 years, thanks to improvements in legislation and climate change, we have seen a 70% increase in the number of wineries… The approximate figure is around 70 new enterprises. They have come out of the shadows, started paying taxes, and officially hired people. Small châteaux have begun to develop in Ukraine. There have never been small wine-producing enterprises in Ukraine, either during the Soviet era or since the country became independent,” he said at the Agro2Food exhibition.

The head of the industry association recalled that previously, in order to obtain a license to produce wine, it was necessary to pay about UAH 500,000. After the transition to a simplified registration procedure for wine-producing enterprises, this procedure became more affordable, and anyone who wishes to do so can obtain a license in two weeks.

After the boom in the creation of small domestic châteaux began, according to the expert, winemakers began to lack raw materials and, accordingly, vineyards.

According to Pechko’s estimates, there are currently about 20,000 hectares of vineyards in Ukraine, of which 5,000 hectares were planted during the war. These statistics do not take into account the occupied territories in Crimea, Kherson, and Mykolaiv regions.

The head of the association said that global warming has given Ukrainian winegrowers the opportunity to plant vineyards in regions that are not typical for viticulture. As an example, he cited the Kyiv region, where about 10 licensed wine-producing enterprises operate. They grow their own raw materials in the Kyiv region and purchase the necessary volumes in the Odesa and Mykolaiv regions.

Domestic winemakers, he noted, are forced to actively import foreign alcohol, mainly from Moldova and Georgia, where viticulture is more developed.

Pechko also said that the creation of an isotope analysis laboratory in the Odesa region had a positive impact on the industry. It allows enterprises to check the wine material from which factories produce higher quality products.

“Thanks to the revitalization of processing enterprises, grape growing has become profitable. While in 2023 the cost of 1 kg of grapes for processing was 5-8 UAH, in 2024-2025 it reached 18-25 UAH, which stimulated the planting of vineyards,” the expert noted, adding that Ukrainian wine exports are still low.

“It is too early to say that we are great exporters and ready to conquer Europe. We need to do this, but we need to protect our own market more. We need to make high-quality products and compete with them in Ukraine,” concluded the head of the Association of Gardeners, Winegrowers, and Winemakers of Ukraine.

, , , ,

Winemakers in Odessa region can apply for grants from FAO

From October 28 to November 17, 2025, grape growers and winemakers in the Odessa region can apply for grants from the Food and Agriculture Organization of the United Nations (FAO) in cooperation with the Ministry of Economy, Environment and Agriculture of Ukraine, with financial support from the Italian government.

According to information on the Ministry of Economy website, winegrowers and winemakers registered in the State Agrarian Register (SAR) who cultivate between 0.5 and 20 hectares of vineyards in the Odessa region are eligible to participate in the program.

Selected participants will be able to receive grant support ranging from $10,000 to $25,000. The amount will depend on production volumes and justified needs.

The new FAO program aims to develop Ukraine’s wine sector by expanding access to modern equipment, quality planting material, and technical support, as well as introducing market-oriented approaches that will ensure the sustainable development of small producers.

According to Shakhnoza Muminova, head of the FAO Office in Ukraine, quoted in the ministry’s publication, the initiative is a step in the long-term cooperation with the Ukrainian government to strengthen the rural economy and restore value chains in the agri-food sector.

The program also provides for technical support, training, and consulting, as well as assistance in implementing a system of protected geographical indications to increase the competitiveness of Ukrainian wines in domestic and foreign markets.

, , , ,

Global wine consumption decreased by 12% in 2024 – Knight Frank

Wine consumption in the world in 2024 decreased by 12% compared to the peak level of 2007, according to a report by Knight Frank.

At the same time, “some of the world’s key wine regions were not affected by this decline.”

The vineyards of New Zealand suffered the most. For example, in the Marlborough region, their value fell by 33% last year from a historic high in 2023, said Kurt Lindsay of Bayleys, Knight Frank’s partner company in the local market.

The value of vineyards in the Los Carneros region in California’s Napa Valley fell by 15% in 2024 compared to the previous year, in Australia’s Barossa Valley and France’s Côte du Rhône region – by 10%.

Wine production has decreased by about 20% over the past 20 years, according to Knight Frank. At the same time, many winemakers still have excess stocks, the Financial Times reports.

According to Lindsay, excess stocks in Marlborough, New Zealand, have led to a decrease in the cost of bulk wine (shipped in large containers and bottled at the destination) from 7 New Zealand dollars ($3.9) to 3 dollars per liter.

In Chile, the price of Pais grapes for balloon wine fell to $0.09 per kg last year, which is about half the cost, says Miguel Torres chief winemaker Eduardo Jordan.

At the same time, premium grape-growing areas, including French Champagne, have retained their value, the FT writes.

In the British Essex, the value of vineyards jumped by 20% in 2024, according to Knight Frank.