STEGA: The situation in "Plantaže" is more than alarming, it's the last moment to react urgently

The Strategy for a European and Civic Montenegro - (STEGA) sent an open letter to the Minister of Agriculture, Forestry and Water Management, Vladimir Joković, in which they say that the situation in the company "13. jul - Plantaže" is more than alarming and that it is the last moment to react urgently.

"After a series of information received by STEGA, we have come to the conclusion that the situation in the 'Plantaže' company is more than alarming. We believe that it is the last moment to react urgently if there is a desire to preserve one of the leading commercial brands in Montenegro. We must emphasize that we are surprised why there has been no reaction from the competent and most responsible authorities regarding the work of this company for a long time and why the situation has been allowed to worsen," it is written in an open letter to Joković, submitted to the media.

They say that "Plantaže" are a great value for Montenegro and that they should be preserved at all costs.

"Many thought that this company was easy to manage, but they were refuted by the disastrous results and millions in losses that this company records year after year. It is undeniable that in recent years, more attention has been paid to political goals and the division of functions according to political affiliation, which led to the appointment of inadequate management staff. Profession was not at the forefront, which is the main reason why the company ended up in this position."

STEGA says that, based on business analyses, it can be seen that there has been: neglect and clearing of hundreds of hectares of vineyards, a reduction in grape yields and wine production "to a historic minimum."

"Then, the loss of significant markets and a decrease in sales, the expulsion and demotion of staff, along with the employment of often unprofessional staff along political lines, a decrease in product quality, which is confirmed by the decreasing number of awards at the world's most prestigious wine evaluations. Also, operating costs have significantly increased, but also the creation of technological inferiority due to the inability to make investments, which have been practically non-existent in recent years, as well as a series of negative results that have led to the weakening of the company's image and reputation in the increasingly fierce competition in the world of wine."

All of this, they said, has led to years of negative business results, which "in recent years have been measured in multi-million figures."

"The consequence of this way of working is the accumulation of debt for taxes and contributions to the state in the millions, as well as the sale of land that the majority owner - the State, enabled for several million euros, in order to cover negative business operations. We believe that in this way the state has provided support to the management in the tens of millions of euros, but unfortunately without results," they add.

STEGA believes that the Board of Directors and the current management are unable to respond to the "existing crisis situation" and that, "consciously or unconsciously", they are deepening the difficult position the company is in.

"Although we know that there are a number of people very interested in the 'collapse' of Plantaže, we believe that there are more numerous and more important those who are ready to contribute to the recovery and restoration of the old glory and trust in this brand."

STEGA proposes to Joković that a crisis team be formed, consisting of representatives of the competent ministry, representatives of majority and minority capital, and representatives of that organization, who would "make a significant contribution to the rehabilitation of the company."

They remind that the wine business is very demanding and that it is "only possible for privileged countries with favorable climatic conditions and grape varieties". "In every wine country, this form of economic activity is specific and conditioned by its comparative advantages, and so is Montenegro, which should be used and incorporated into the development strategy of 'Plantaže' and Montenegrin viticulture. This requires knowledge and expertise, not familiarity and politicking. In this situation, without the active participation of the state, professionals, and the most eminent domestic experts, this is impossible. This requires a professional, not a party, team. We believe that the model should be applied win-win which will make 'Plantaža' and Montenegrin viticulture the winner. Any confrontation between the parties would only represent a waste of time and energy."

STEGA also states in its letter to Joković that "Plantaže" has gone through several crises in its decades-long operation, which it "successfully overcame thanks to the efficient and professional decisions of the state and the company's managers". "Let's remember the 1990s, during the time of socialism and the time of 'Agrokombinat', when such complexes were failing throughout Yugoslavia, while 'Plantaže' managed to become a world-renowned company, and in state ownership".

They say that "timely action in the complex wine sector is crucial," and that they expect quick and efficient action from Joković.

We believe that the defense of 'Plantaže' is necessary because of all the values ​​it has - a visionary project that many doubted and that has been alive for 60 years, a project that was supported by the World Bank back in 1975 and recognized the potential and values ​​of Montenegro and because of: the largest vineyard in one complex that the leading wine countries of the world do not have, the wealth of indigenous varieties that Montenegro has and the involvement of the most recognized world institutes in their study, the support it has given to the overall development of Montenegrin winemaking and viticulture, the value of 'Plantaže' for wine tourism and the enrichment of the country's tourist offer, the importance of 'Plantaže' in terms of security for Montenegro, the fact that 'Plantaže' is the most recognized brand of Montenegro that exports wine to all continents, the fact that export income within Montenegro has been at the very top for years, prestigious awards at the largest wine evaluations, the fact that 'Plantaže' makes up 90% of Montenegrin viticulture, and finally that 'Plantaže' is proof that Montenegro can be economically "a self-sustainable and successful European story if it is managed professionally and in a homely manner," the letter to the minister reads.