17/09/2013 15:50
Yerevan Brandy Company dictates grape prices
In Armenia, retail prices of grapes are dictated by the Yerevan Brandy Company. Grapes are currently sold for 145 drams a kilogram, Chairman of the Union of Wine Makers of Armenia Avag Harutyunian said during a press conference today.
Although YBC occupies 25% of the procurement market, it is the first to start the process and its price becomes a ‘beacon’ for others, Harutyunian noted.
This year the purchase price of red grape is expected to be 180 AMD, the price of Areni variety will be 200 AMD or higher.
The union chairman said that the average purchase price of a kilogram of grapes should be at least 180-200 AMD so that farmers could earn a profit. Farmers receive a 40% profit but their land plots are small so the established purchase price is not competitive.