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In 2020 the vineyard acreage will increase by 7,5% according to the forecast.

In 2020 the vineyard acreage will increase by 7,5% according to the forecast.

16/09/2019

The branch association’s experts report the 7,5% increase is more than possible. According to Leonid Popovich, the head of association, the vineyard planting acreage in Russia expanded by 7 thousand hectares in the current year.

Basically, that is resulted by the active state support of the sector. The total public spending on grapes production in the past five years since 2014 amounted 4.5 billion rubles by the estimates of Dmitriy Patrushev, the Head of Minselkhoz. 1.4 billion rubles were given by state for vine-growing development last year. The state budget also defrays the 40% of vineyard laying & upkeep costs.

The goal, announced in 2014 by the Head of Russian Government, is to reach the vineyard acreage of 140 thousand hectares by 2024. In 2018 the total grapes planting acreage in corporate & private farms amounted 80 thousand hectares according to Rosstat. So, the more than 42% increase in five years is needed to come to plan figures. That means, the vineyard acreage should grow by more than 12 thousand hectares per year.

The researching agency NEO Centre reported about wine market volume fluctuating between 71-74 million dals in the past three years. The import makes nearly 60%. Mostly the importing wine products come from Italy & France. Popovich supposed the vineyard acreage should reach 200 thousand hectares to cover the 90% of Russian winemakers’ need for primary produce. Experts think it’s highly doubtful to reach mentioned results by 2024 having current increase.  

The state support surely aids the branch development. But the grape is the plantation crop. It can give top yield at least in five years. So, the wine market growth should be expected only, when the new vineyards start fruiting.          

Source:

26/08/2019 https://www.agroinvestor.ru/analytics/news/32305-ploshchad-vinogradnikov-v-2020-godu-mozhet-vyrasti/