THE DEVELOPING TRENDS OF THE ITALIAN AND UKRAINIAN VITICULTURE AND WINERIES

The world experience of viticulture development and winemaking is analyzed in this article. It is established that the experience of Italy is the most acceptable example for Ukrainian winegrowers. The analysis of wine industry development in Ukraine and Odessa region is carried out general. The dynamics of grape production and the processing of wine materials in different areas as well as the inside and outside factors making impact on development of wineries are also analyzed.

Syrian and others legends mention the origin of wine and winemaking development.
Viticulture and winemaking have always been the important agronomic industry in Ukraine. Occupying a small share in agricultural land, this industry significantly has influence on the level of social-economic development of the regions. The history of viticulture and winemaking development in Ukraine dates back to ancient times. The images of grape bunches on some coins in III and II centuries BC in Tira city show that viticulture and winemaking were the most important kinds of work there. During two and a half millennium the periods of blooming alternated with troughs and complete loss of viticulture or winemaking, resulted from the military operations or underestimation of this high profitable and such necessary industry [1].
Various historical sources testify that viticulture and winemaking began its development as the agricultural industry in the territory of modern Ukraine, particularly in the south region in the 6th century BC. From that time until today the development of viti-wineculture in modern Ukraine has had a lot of ups and downs connected not only with historical moments, but also with a human factor [1].
In 2008, Ukraine became the 152d full member of the world Trade Organization, and this fact opened the way out of the country on the international market with its hard competition. At that moment, Ukraine occupied the following positions in the production of grapes in the world and the EU countries: the specific gravity of the total area of domestic vineyards made up 1,0% and 2,0%,

ISSN 2312-847X
ЕКОНОМІКА ХАРЧОВОЇ ПРОМИСЛОВОСТІ Том 9, Випуск 1/2017 crop capacity -64,5% and 83,7%, gross vintage -0,62% and 1,7% correspondingly [5]. Therefore, the domestic viticulture and wine industry must be up to the world standards of production and quality in order to occupy a fitting place among world producers. The achievement of specified goals is only possible in case the industry output is on the sufficiently high level of development that induces to systematic search by scientists, practical farmers, winegrowers and winemakers together with the state support that provides ways and methods for improving the economic, technological, social and other kinds of industry efficiency.
After the entrance of Ukraine into WTO, the competitive ability of domestic producers plays the key role, because they are the leading link in the economic development of the country. It's its condition that makes impact not only on the economics, but also on the international position, the image and attractiveness of the country. However, wine industry not only in Ukraine, but also in the whole the world has difficulties nowadays. According to OIV, there are 9,5-10,0 mln. he of vineyards. The annual total production of grapes is 60-70 mln tonnes, wine -280 mln gl. The main wine producers are Italy (up to 45 mln gl.), France (up 44 mln.) and Spain (up 40 mln).In general, the EU produces 146 mln gl (52%).

Pic.1. The area of vineyards in Ukraine in 1990-2015 y., thousand he [3]
Independent Ukraine inherited vitiviniculture in a very bad condition. During the last decade negative trends in Ukrainian viticulture continued, that, is as a result, led to the present crisis in this industry, which is characterized by high thinness of existing vineyards, lower volume of seedling production, that are steady to pathogens, spreading mediocre sorts with low consumer properties etc. It resulted in a decrease in grape production.
It should be mentioned that, despite the significant natural grape and wine potential in Ukraine, the production of grapes is concentrated not in all regions, but only in grape zones, where nature creates favorable climate conditions and suitable grounds for growing vine rods. According to the law of Ukraine "About grapes and grape wine" the term of the zone of wine growing is defined in such a way: the geographical territory of Ukraine with suitable agroecological conditions for cultivation of culture of grapes [6].
In the last Grape cadastre (2010 year) the 15 zones of wine growing (macrozones) ,which are the basis of sorts regions, and 58 natural wine regions (micro-zones) of the widest distribution, and their specialization of viticulture and winemaking and range of grapes, were picked out. Particularly, there are 3 macrozones and 16 microzones in Odessa region, in Mykolaiv -2 and 7, in Zakarpattia -1 and 12, in Zaporizhzhia -1 and 16, in Kherson -2 and 10 correspondingly [7].
Apparently, the annual rates of the areas of vineyards reduction including fertile age for the whole analyzed period fluctuate, within approximately the same ranges without clearly expressed regularity. The sharp decrease in vineyard areas in 2015 was partly explained by the lack of statistics on grape growing in the territory of the Autonomous Republic of Crimea and was not significant from the objective point of view.
The south of Ukraine received the most territorial spreading as industry, taking into consideration ground-climate conditions, (Odessa, Mykolaiv, Kherson and Crimea), in Zaporizhzhia region and in the west region (Zakarpattia), which share in 2015 accounted 89,9% of specific gravity of vineyards in the fertile age. (table  1).

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ЕКОНОМІКА ХАРЧОВОЇ ПРОМИСЛОВОСТІ Том 9, Випуск 1/2017 Data analysis proves that the size of the vineyards in the fertile age had had a strong tendency to decrease for more than 20 years, and as a result -it reached the figure 41,8 thousand he in 2015, that is only 29,17 % from the level in 1990. It should be noted that Odessa region, which in 1990 (excluding indicators for Crimea) covered 61,5% of the area in Ukraine and saved this regularity in 2015 (61%). Kherson region had a much smaller area of plantations whose share in 2015 was only 11,5% from the index in Ukraine. The greatest losses of plantings in the vineyards due to the absolute value were in Odessa region ( -29,6 thousand he till the index in 1990), and due to the fall rate -Zakarpattia, which lost 67,27% of the vineyards area in comparison with 1990.
In general there is a tendency to an overall reduction of vineyards almost every year in Ukraine, including fruit-bearing age. In addition, there is a general decrease in laying of young vineyards that don't compensate the areas withdrawn from economic circulation. The research found that the reasons of insufficient laying of vineyards in recent years, in comparison with the volume of write-off plantations, were both financial and purely psychological. The first include the difference in terms of revenues from the state budget for industry support (including allocation tax on development of viticulture, horticulture and hop) and terms of the work and actual needs in funds. After all, the state compensation of costs on planting vineyards was only in the 4 th quarter of this year, while works on the plantations are always held at the beginning of the year in early spring on their own money or business credit. In addition, a very negative situation for the grapes producers with timely receipt of these funds has appeared recently. Thus, according to the Chamber in 2002 year, the Ministry of Agrarian Policy and Food in the presence of the remaining public assignment in the amount of 172,2 million UAH and revenues collection on development of viticulture, horticulture and hop including UAH 1mlrd 75,0 mln, on the state support for the development of viticulture, horticulture and hop only UAH 309,2 mln, or 24,8% of available resources and 28,8% of the plan were used [8].
Among the psychological reasons, why the growers were unwillingly engaged in renewal of vineyards, we can admit pessimistic producers' expecta-tions regarding the level and terms of compensation costs on new laying vineyards from the state; that, according to the above data, has logical basis.
It should be noted separately, that from January 1, 2013 the rules on the administration fee were relocated to the Tax Code Ukraine, and from 1 January 2015according to the Law of Ukraine "About amendments to the Tax Code Ukraine and some legislative acts Ukraine on the tax reform" tax on development of viticulture, horticulture and hop was cancelled in general. Instead, retailers of alcohol beverages from 01.01.2015 year started to pay 5% excise tax, which is directed to the local budgets, and therefore its distribution also raises questions today [9].
One of the components that have impact on the efficiency of development in modern domestic viticulture and its weak point is the variety composition of vineyards both table and technical directions.
In the vast majority of domestic industries, viticulture is represented by the old and low productive plantations table grapes, which now can't satisfy demand on fresh grape production and need updating. A major disadvantage of table viticulture in Ukraine is also a small share in the industrial assortment of varieties, which have high product quality in the early ripening period. On the one hand, it is by increasing the area of grapes sorts during a very early and an early ripening terms, normative consumption of fresh grapes could be achieved by population, and, on the other hand, the increasing profitability of wine growing enterprises at the expense high prices for the early grape production. Therefore, we think that the expansion of area for early ripening varieties of table grapes is an increasing reserve of economic efficiency of wine growing enterprises.

ISSN 2312-847X
ЕКОНОМІКА ХАРЧОВОЇ ПРОМИСЛОВОСТІ Том 9, Випуск 1/2017 As we can see, other 93 sorts covered 38,0 % of the area. The area under these sorts range from more than 1 thousand he and less than 100 he. Despite such a great number of varieties, the lack of champagne, red and aboriginal varieties is observed. It means that the structure of varietal vineyards in the farms of Ukraine needs improvements, optimization placement and specialization by certain enterprises and in the wine growing regions. In comparison, only 12 varieties of grapes for winemaking exist in Germany [5].
In terms of priority of Ukrainian winemaking development, in the direction of wine production with controlled name of the original place, and varietal wine grapes the number of varieties should be reduced, that ensures the quality and compatibility of domestic wine production. According to the State Register of plant varieties suitable for widening in Ukraine in 2015, among the presented 61 grape varieties, only 27 (44,3%) technical and 6 (9,8%) wine-table are suitable for cultivation in Ukraine [10].
One more weak link in the wine growing industry in Ukraine is clearly picked out -the nursery state. In all wine growing countries the laying of new and reconstruction of already existing vineyards is made only by certified varieties. The network of vine nurseries In Ukraine has almost completely been destroyed. Today, only Odessa, Kherson and Zakarpattia regions host the farms that practice nursery. As a result of the suspension of planned vineyards reconstruction and the absence of need in the grafted plant material, almost a complete decline of nursery base has been observed. Those remaining breeding grounds are not in the best condition, as this direction of the industry is one of the energy-and resource-intensive, so nowadays the cost on planting material has dramatically increased and its production has gradually become unprofitable.
Varietal structure of vineyards in the Ukrainian farms needs streamline placement optimization and specialization both in individual companies and in the natural wine regions. Currently the control over the presence and condition of the plantation associations, industrial associations, agricultural specialists, winemakers is almost lost. State and farm enterprises, often without the consent of processors and producers of wine products, develop stubbing plantations, including valuable grape varieties used for making the high-quality wines and its other products [3].
Another reason for lower productivity of vineyards is their thinness -down to 20%. This percentage of thinness is equal to eliminating sales of about 13 -14 thousand he of agricultural lands and the annual failure (with an average yield) 93,9 -100 thousand tons of grapes [5].
Another problem that hinders the stable development of the domestic viticulture and winemaking in Ukraine, from our point of view, is a large proportion of old vineyards. The critical age of the vines in Ukraine accounts only 30 -40 years (in comparison with -the leading countries of winemaking -France, Italy, where there are modern production technologies and the productive age of the vines reaches more than 50 years). In 2008, the largest area was occupied by vineyards aged from 26 to 40 years (34,6% from the total area of vineyards). Vineyards in the most productive age between 5 -10 and 11 -25 years accounted respectively 17,1% and 20,7% from the total area. The proportion of young plantations under 5 years was 26,7% [5].
Therefore, an essential part of vineyards in Ukraine today is inefficient and can't be effective in forming the competitive viticulture and winemaking. It should be understood that every year the number of vineyards in Ukraine is growing, correspondingly the question of speed concerning repair and restoration of the vineyards requires immediate resolution. According to the scientific-accurate system of wine part the young vineyards must make at least 20%, and the annual renewal must provide 5% of existing plantations, so, according to our estimates, no less than 2 thousand he of new vineyards should be laid in Ukraine every year.
In our opinion, insufficient high level of land reform in Ukraine and not fully completed issue of land in the legislation prevents reproduction of domestic vineyards and winemaking development. After sharing the land without right of property winegrowers today aren't at risk to invest in the industry taking into account that the vine is a perennial culture with a long payback period. As a result, part of the vineyards today isn't cultivated, that can't positively effect on the winemaking in the country. The analysis shows that some farms in Kherson region, being reported to the state statistics and available for the vineyards, don't show the resulting yield. On the one hand, in order to improve the situation, from our point of view, the land legislation must be brought in compliance with the time, considering the interests of the state and farmers as quick as possible. On the other hand, we consider, it's necessary to foreknow responsibility for disfigurement and falsification of statistics on business entities.
Conclusions and prospects of the further investigations.To improve the efficiency of domestic wine growing, it's important to start production of containers required to collect and realize table grapes, expanding the network of refrigerators for short and long-term storage, and the development of material database industry, including provision of equipment for effective care of the vineyards and harvest. Low status providing the wine growing industry with equipment is one of the main factors (excluding unfavorable natural conditions), in recent years, resulting in significant yield losses and reduction of the efficiency in the wine growing enterprises. In recent years, investment in the industry gradually declined, and in 2015, according to the official statistics, capital investment in crop long-term biological assets in Ukraine wasn't carried out [3].