Wine In­dus­try: Cur­rent Trends

At the 16th ses­sion of the Gen­eral Assem­bly of the In­ter­na­tional Or­ga­ni­za­tion of Vine and Wine (OIV), which took place on 23 Novem­ber 2018 in Punta del Este, Uruguay, Uzbek­istan be­came a mem­ber of this or­ga­ni­za­tion.

Uzbekistan Today (English) - - ACTUAL -

Shah­noza Kady­rova, se­nior re­search fel­low at the In­sti­tute of Strate­gic and Re­gional Stud­ies un­der the Pres­i­dent of the Repub­lic of Uzbek­istan, in­tro­duces us to the cur­rent trends in the de­vel­op­ment of the global wine in­dus­try.

Mod­ern stud­ies show that wine con­sumed in mod­er­ate vol­umes has a pos­i­tive ef­fect on the hu­man body. Wine com­po­nents are use­ful as pro­phy­lac­tic agents for many ail­ments: car­dio­vas­cu­lar dis­eases, cancer, di­a­betes, etc.


Ac­cord­ing to the In­ter­na­tional Or­ga­ni­za­tion for Vine and Wine (OIV), about 250 mil­lion hec­to­liters (hl) of wine (1 hl = 100 liters) was pro­duced in the world in 2017, which is 8.2% less than in 2016 (266.8 mil­lion hl). One of the main rea­sons for the record de­cline in pro­duc­tion was the drop in vol­umes in key wine pro­duc­ers in Europe.

Com­pared with 2016, wine pro­duc­tion in Italy fell by 23% in 2017, in France it de­creased by 19%, and 15% in Spain. In 2017, four smaller play­ers man­aged to in­crease wine pro­duc­tion: Por­tu­gal (+ 10%), Ro­ma­nia (+ 64%), Hun­gary (+ 3%) and Aus­tria (+ 23%).

The to­tal size of vine­yards in the world to­day is 7.6 mil­lion hectares. Spain is the leader in the world in terms of the area of vine­yards (967 thou­sand hectares), ahead of France (787 thou­sand hectares). In Italy, the vine­yards oc­cupy 695 thou­sand hectares.


Viti­cul­ture in Europe is dis­tinct in that al­most all vine­yards are lo­cated in moun­tain­ous and semi-moun­tain­ous ar­eas. For ex­am­ple, 59% of vine­yards in Italy are lo­cated on hills, 21% in moun­tain­ous ar­eas and only 20% in low­land ar­eas. In the struc­ture of plant­ings in Italy, tech­ni­cal va­ri­eties are about 15 times more than the ta­ble va­ri­eties.

Italy pro­duced 592 mil­lion hec­to­liters of wines and ex­port earn­ings of Ital­ian pro­duc­tion in 2017 reached $ 6.8 bil­lion.

France is the birth­place of grapes of such world fa­mous va­ri­eties as Caber­net Sauvi­gnon, Chardon­nay, Sauvi­gnon Blanc and Syrah, cur­rently cul­ti­vated in other coun­tries.

Al­most 80% of the ter­ri­tory of France is suit­able for grow­ing grapes. The coun­try has about 774 thou­sand hectares of vine­yards set aside for the pro­duc­tion of wine.

French wine­mak­ing is rec­og­nized around the world, while lo­cal spe­cial­ists pro­vide train­ing in it, both in the coun­try and abroad. French vine­yard own­ers do not pay wealth tax (75%), when buy­ing a vine­yard you will need to pay only 6% of the tax on its value.

To­day, over 50 thou­sand com­pa­nies in France en­gaged in the pro­duc­tion of wines are suc­cess­ful. In­come from ex­ports amounted to more than $ 10 bil­lion in 2017. About 120 thou­sand jobs are there in this sec­tor of the econ­omy.

In Spain, more than 300 dif­fer­ent grape va­ri­eties are cul­ti­vated. Span­ish wine­mak­ers reg­u­larly ex­per­i­ment with new wine brands. How­ever, mainly (85%) lo­cal grape va­ri­eties pre­vail here such as Airen, Gar­nacha Blanca, Mosca­tel, Ma­cabeo, Mal­va­sia, Tem­pranillo, Monas­trell, etc.

Spain an­nu­ally pro­duces an av­er­age of about 35 mil­lion hec­to­liters of var­i­ous types of wine. It ac­counts for 22.7% of the vine­yards of Europe. As ev­i­denced by the data of the Span­ish Ob­ser­va­tory for the Wine Mar­kets, in 2017 Span­ish lo­cal wine com­pa­nies for ex­port have re­lied on qual­ity. In to­tal, they sold abroad 22.8 mil­lion hec­to­liters of wines worth $ 3.3 bil­lion

The most ex­ten­sively the branch of viti­cul­ture in the CIS space is rep­re­sented in Azer­bai­jan, Ar­me­nia, Ge­or­gia, Moldova, Rus­sia, Uzbek­istan and Ukraine.

Ap­prox­i­mately 70% of the grapes grown in Moldova are well­known Euro­pean va­ri­eties such as Caber­net Sauvi­gnon, Mer­lot, Pinot Noir, Sauvi­gnon Blanc, Chardon­nay, Alig­ote. The area oc­cu­pied by vine­yards in Moldova is about 140 thou­sand hectares, of which 105 thou­sand hectares are used for com­mer­cial pur­poses.

27% of the work­ing pop­u­la­tion of Moldova is em­ployed in the viti­cul­ture and wine in­dus­try. 40% of vine plan­ta­tions are con­trolled by farm­ers, 35% are owned by co­op­er­a­tives, 25% are owned by winer­ies.

The wine in­dus­try is a strate­gic sec­tor of the Moldovan econ­omy, which forms 3.2% of GDP and ac­counts for 12% of to­tal ex­ports. 80% of the wine is ex­ported to more than 50 coun­tries. Wine ex­ports amounted to 14.1 mil­lion de­caliters for a to­tal of about $ 156 mil­lion in 2017.

Abo­rig­i­nal grape va­ri­eties are widespread in Ge­or­gia: over 500, of which sev­eral dozens are of­fi­cially al­lowed for use in wine­mak­ing. In ad­di­tion to lo­cal va­ri­eties and im­ported com­mon: Chardon­nay, Alig­ote and Caber­net Sauvi­gnon.

The area of vine­yards in Ge­or­gia over the last year in­creased by more than 1.5 thou­sand hectares, which to­day ac­counts for 37.5 thou­sand hectares. The Kakheti re­gion is the largest wine-grow­ing area in the coun­try, which ac­counts for 70% (22.2 thou­sand hectares) of vine­yards.

Ac­cord­ing to the Min­istry of Agri­cul­ture of Ge­or­gia, to­day about 22 thou­sand farm­ers work in the viti­cul­ture sec­tor. Of­fi­cially reg­is­tered more than 130 com­pa­nies that ex­port wine. In Jan­uary-Au­gust 2018, wine ex­ports to 60 coun­tries grew by 13% and amounted to 60 mil­lion bot­tles. Ex­port rev­enues amounted to $ 142 mil­lion, which is 22% higher com­pared to the same pe­riod in 2017.

In Azer­bai­jan, the area of vine­yards oc­cupy up to 24 thou­sand hectares. More than 450 lo­cal grape va­ri­eties are known. Be­sides lo­cal Euro­pean va­ri­eties such as Pinot Noir, Verde­lio, Caber­net, Mal­bec, Semil­lon, and oth­ers, cul­ti­vated in small ar­eas give valu­able wine prod­ucts.

In 2017 Azer­bai­jan pro­duced more than 1 mil­lion de­cal­itres of wine pro­duc­tion, of which 375,000 de­cal­itres were ex­ported. In­come from ex­ports amounted to $ 6 mil­lion, which is 67% more com­pared to 2016.

In all of the above coun­tries, there are laws on grapes and wine. The task of the laws is to pro­vide com­pre­hen­sive as­sis­tance to the de­vel­op­ment of viti­cul­ture and wine­mak­ing as a pri­or­ity area of the coun­try's econ­omy, the pro­duc­tion and sale of com­pet­i­tive grape wine, and the pro­tec­tion of the con­sumer mar­ket from coun­ter­feit and lowqual­ity prod­ucts.

In 2006, the Par­lia­ment of Moldova ap­proved a new edi­tion of the “Law on Wine and Grapes”. Ac­cord­ing to him, wine is no longer con­sid­ered an al­co­holic bev­er­age.

More­over, there are pro­grams and spe­cial gov­ern­ment agen­cies that sup­port and reg­u­late the pro­duc­tion of wine and wine prod­ucts. For ex­am­ple, in Azer­bai­jan within the frame­work of the pro­grams for 2012-2020. It is planned to plant about 50 thou­sand hectares of new vine­yards. Ini­tially, lo­cal na­tive and im­ported grapes will be used for plant­ing new vine­yards, and then vac­ci­na­tion com­plexes will be built. About 40–50 mil­lion pieces of cut­tings are planned to be planted an­nu­ally at these sites with the pro­duc­tion of 12–14 mil­lion grafted seedlings.

In 2017 through the Na­tional Fund for the Sup­port of En­trepreneur­ship of the Repub­lic of Azer­bai­jan (NFES), com­pa­nies en­gaged in the pro­duc­tion of wine prod­ucts re­ceived pref­er­en­tial loans in the amount of $ 23.5 mil­lion. To farm­ers who grow grapes in 2017. At 50% dis­count, fuel and en­gine oils were sold. Farm­ers re­ceived fer­til­iz­ers at a 70% dis­count; the state paid 40% of the value of agri­cul­tural ma­chin­ery.

In 2017 The Ge­or­gian Agri­cul­tural Project Man­age­ment Agency has pro­vided fi­nan­cial as­sis­tance in the field of viti­cul­ture. As a re­sult, man­u­fac­tur­ing com­pa­nies re­ceived con­ces­sional loans in the amount of $ 22 mil­lion, in which 8% of the to­tal loan amount will be fi­nanced by the state. Also, vine­yards on the area of 5.1 thou­sand hectares are in­sured.

Ge­or­gian Na­tional Wine Agency since 2014 keeps a reg­is­ter of vine­yards. The agency pro­vides a cadas­tre of vine­yards, reg­is­tra­tion, cer­ti­fi­ca­tion and spec­i­fi­ca­tion of zones, and clar­i­fi­ca­tion of bound­aries.

Pass­ports sim­plify the com­mu­ni­ca­tion of wine­grow­ers with wine com­pa­nies; fa­cil­i­tate the process of re­ceiv­ing wine ma­te­ri­als.

The in­tro­duc­tion of the world’s lat­est achieve­ments of sci­ence and tech­nol­ogy in viti­cul­ture and wine­mak­ing is car­ried out in France by a spe­cial In­sti­tute of Grape and Wine. In Paris, the head­quar­ters of the OIV and the world’s largest Na­tional In­sti­tute for Agro­nomic Re­search are lo­cated.

Re­search and train­ing in the field of viti­cul­ture and wine­mak­ing in Italy are con­ducted in re­search and ed­u­ca­tional in­sti­tu­tions. The main ones are: 1) Sci­en­tific Re­search In­sti­tute of Viti­cul­ture (Conegliano-Veneto); 2) In­sti­tute of Wine (Asti); 3) In­sti­tutes of viti­cul­ture and wine­mak­ing in Alba, Avel­lino, Cata­nia, Marsala, Lo­coro­tondo. The Ital­ian Academy of Grape and Wine is lo­cated in Siena. It co­or­di­nates the work of its sci­en­tific cen­ters, in­forms the world's ma­jor sci­en­tists work­ing in this field of sci­ence, and has ex­ten­sive in­ter­na­tional con­tacts.

Sci­en­tists of the Ge­or­gian Re­search In­sti­tute of Hor­ti­cul­ture, Viti­cul­ture and Wine­mak­ing of the In­sti­tute de­vel­oped and se­lected about 150 high-yield­ing va­ri­eties and clones of grapes, cre­ated a com­plex of graft­ing ma­chines, etc. More­over, the In­sti­tute buys cut­tings and saplings of Euro­pean grape va­ri­eties for re­pro­duc­tion and plant­ing. The in­sti­tute has spe­cial­ized coun­cils for award­ing a de­gree to a can­di­date. Sci­ences in viti­cul­ture, fruit grow­ing and wine­mak­ing, grad­u­ate school, a mu­seum of viti­cul­ture and wine­mak­ing.

The Azer­bai­jan Re­search In­sti­tute of Viti­cul­ture and Wine­mak­ing will play a large role in the de­vel­op­ment of viti­cul­ture and wine­mak­ing on sci­en­tific bases. The in­sti­tute has 5 de­part­ments (the depart­ment of grape pro­cess­ing and wine tech­nol­ogy, the depart­ment of agrotech­nics of grapes, the depart­ment of plant breed­ing and nurs­ery, the depart­ment of viti­cul­ture and nurs­ery, the depart­ment of in­for­ma­tion sup­port and im­ple­men­ta­tion of sci­en­tific re­sults) and 4 lab­o­ra­to­ries, as well as the Ganja and Shamakhi sta­tions and the Jalil­abad base sta­tion.

One of the ways to pro­mote the brand of wine­mak­ing is to stim­u­late wine tourism in the ter­ri­to­ries in­volved (vis­it­ing winer­ies, vine­yards, wine fes­ti­vals and other events).

To­day, France is the most pop­u­lar coun­try in terms of wine tourism.

Every year in Oc­to­ber in Mont­martre (Paris) the an­nual Wine Fes­ti­val is held in honor of the new grape har­vest. The French Beau­jo­lais Nou­veau wine fes­ti­val takes place in Novem­ber through­out the coun­try, mainly in the town of Beauzho, the birth­place of fa­mous wine. His goal is to sup­port lo­cal pro­duc­ers and pop­u­lar­ize the best French winer­ies around the world.

Every year in May, a fes­ti­val of young wine is held in Tbil­isi. By May, the wine pre­pared ac­cord­ing to tra­di­tional Ge­or­gian tech­nol­ogy in Kvevri ves­sels (a clay jug for aging wine) ripens and waits for the mo­ment when it can be tasted. Ge­or­gian tra­di­tional method of mak­ing wine in kvevri in 2013 awarded the sta­tus of a mon­u­ment to the in­tan­gi­ble cul­tural her­itage of UNESCO.

Every year in Oc­to­ber, the Repub­lic of Moldova cel­e­brates the Na­tional Wine Day. In honor of this event, a pref­er­en­tial visa regime has been es­tab­lished for for­eign­ers (7 days be­fore and af­ter the hol­i­day).

Dur­ing the year, the Na­tional Bureau of Vine and Wine of Moldova holds 115 ad­ver­tis­ing cam­paigns: events, pub­lic re­la­tions, or­ga­ni­za­tion of meet­ings with jour­nal­ists from dif­fer­ent coun­tries, train­ing cour­ses. To im­prove the cul­ture of wine con­sump­tion in the coun­try, the Moldova Wine Academy is be­ing cre­ated.

For 2017 wine ex­porters to pro­mote prod­ucts un­der the brand “Made in Azer­bai­jan” par­tic­i­pated in 7 in­ter­na­tional ex­hi­bi­tions (in Ger­many, China, France, Moldova, etc.) with a sin­gle na­tional stand. More­over, wine houses opened in China (Urumqi, Bei­jing), in Be­larus, Rus­sia and Latvia.


To­day, af­ter a thor­ough in­ven­tory of ex­ist­ing vine­yards by Uzsharob­sanoat JSC to­gether with the State Re­search and De­sign In­sti­tute for Land Man­age­ment, only 73.3 thou­sand hectares of vine­yards were iden­ti­fied, of which 11.5 thou­sand hectares are tech­ni­cal va­ri­eties.

In or­der to im­prove the sit­u­a­tion, Uzsharob­sanoat JSC de­vel­oped and ap­proved by the Cabi­net of Min­is­ters of the Repub­lic of Uzbek­istan. The pro­gram for 2018-2023 on the cre­ation of new, with the in­tro­duc­tion of mod­ern agrotech­ni­cal and in­no­va­tive tech­nolo­gies of tech­ni­cal grape vine­yards on the ter­ri­tory of the repub­lic by the clus­ter method. As a re­sult, by the end of 2023, the area of ex­ist­ing tech­ni­cal va­ri­eties of vine­yards will reach 27 thou­sand hectares and by 2027 yield of ex­ist­ing tech­ni­cal va­ri­eties of vine­yards will reach 27-28 thou­sand tons of qual­ity grapes, en­abling the pro­duc­tion of ex­por­to­ri­ented wine.

To date, there are 5 wine tourist zones in Uzbek­istan, or­ga­nized at the plants of the en­ter­prises of the JSC AI “Com­bine Tashkentvino”, Khovrenko Sa­markand Win­ery JSC, LLC Min­dono­bod Agrosanoat, LLC HAMKOR and JSC Ur­gench Sharob.

In gen­eral, ac­cord­ing to ex­perts, the fa­vor­able soil and cli­matic con­di­tions of Uzbek­istan guar­an­tee an ef­fec­tive and cost-ef­fec­tive de­vel­op­ment of wine­mak­ing. Tak­ing into ac­count for­eign ex­pe­ri­ence of pro­mot­ing wine-mak­ing prod­ucts as a na­tional brand, as well as in or­der to ex­pand wine ex­ports by Uzbek­istan to in­ter­na­tional mar­kets, it seems ap­pro­pri­ate:

- con­sid­er­a­tion of the adop­tion of the “Law on Wine­mak­ing” of the Repub­lic of Uzbek­istan on the ba­sis of a study of the leg­isla­tive frame­work of for­eign coun­tries; the cre­ation of the Uzbek­istan As­so­ci­a­tion of Pro­duc­ers and Ex­porters of Wine, iden­ti­fy­ing its main tasks as the uni­fi­ca­tion of spe­cial­ists, the cre­ation and pro­mo­tion of a na­tional brand, the de­vel­op­ment of pro­pos­als for ex­pand­ing the ex­port of a prod­uct, etc.;

- es­tab­lish­ing co­op­er­a­tion with re­search in­sti­tu­tions and higher ed­u­ca­tional in­sti­tu­tions of EU coun­tries in or­der to de­velop teach­ing ma­te­ri­als and im­prove the qual­i­fi­ca­tions of teach­ers of uni­ver­si­ties of Uzbek­istan in the field of train­ing of spe­cial­ists in the field of wine­mak­ing;

- study the sched­ule and con­di­tions for par­tic­i­pa­tion in ma­jor in­ter­na­tional ex­hi­bi­tions and wine fes­ti­vals (“ProWein”, “Holy Fam­ily”, Prague Wine Week, Wine Fes­ti­val in Mont­martre, Freiburg Wine Fes­ti­val) to en­sure the par­tic­i­pa­tion of na­tional wine pro­duc­ers at these events;

- stim­u­la­tion of wine tourism in the ter­ri­to­ries in­volved by im­prov­ing in­fras­truc­ture; To study the is­sue of hold­ing in­ter­na­tional fairs, fes­ti­vals and wine ex­hi­bi­tions, sci­en­tific and ap­plied con­fer­ences and sem­i­nars in Uzbek­istan with the aim of pop­u­lar­iz­ing the na­tional prod­uct.

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