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Image header Agence Europe
Europe Daily Bulletin No. 10583
Contents Publication in full By article 19 / 31
SECTORAL POLICY / (ae) agriculture

Wine - high level group begins work on 19 April

Brussels, 27/03/2012 (Agence Europe) - The EU high level group on wine, which is to start work on 19 April, will discuss the sensitive issue of vine planting rights, the European Commission confirmed during the 46th edition of Vinitaly, which is unfolding from 25 to 28 March, in Verona.

The fate to be reserved for vine planting rights is a highly controversial matter within the EU where 15 countries are calling for the system to be kept in place. Within the Agriculture Council, 222 votes are now in favour of keeping the rights in place, and 33 are missing for qualified majority, Bruno le Maire, the French agriculture minister, recently said. The European Commission's proposal on reform provides for the system to be abolished as of 1 January 2016 (with the possibility of countries keeping it in place until 31 December 2018). The European Commission expects that concrete solutions be tabled by the high level working group, in order to prepare a possible proposal which would be negotiated in parallel to the reform of common agricultural policy (CAP).

“The question is not whether or not we maintain the existing system (i.e. of planting rights) but, if we do keep the concept, how can we be more efficient than in the past?”, said European Commissioner Dacian Ciolos during the Vinitaly exhibition. He said they were ready to discuss this in a “pragmatic manner”, going on to add that it was important to “maintain market instruments”. However, he went on: “We must see what is most appropriate, especially if we want to increase exports, in particular of quality products.” Specific market instruments are important, but promotion can also play a very important role. The Commission will, Ciolos said, be publishing a communication on promotion, which will look at options for the future, which includes also boosting quality products within the EU.

In response to questions on planting rights, the commissioner said it was necessary to have analysis and expert advice first, saying: “We have no pre-established ideas and of course we must also see if we have enough member states who want to re-open this question. The Commission is ready to discuss, but before tabling any proposals we need to analyse the situation with experts. The aim is that the high level group comes forward with its recommendations by the end of the year.”

Business Forum. Paolo Bruni, President of Cogeca (General Committee for Agricultural Cooperation in the EU), who was speaking at the Business Forum devoted to the wine growing sector, placed emphasis on the essential role played by cooperatives for helping wine growers to face the challenges (rise in production costs and environmental constraints). He also highlighted the need for them to develop further in order to be more competitive on the market. Bruni pointed out: “The world market presents significant opportunities, as some big traditional markets, such as the US, northern Europe, continue to grow. Developing markets, like China and Russia which have huge potential, are also rapidly evolving. But wine cooperatives are very segmented in comparison with the total wine produced in each EU member state. To overcome this problem of segmentation, cooperatives need to continue to join forces in order to become more competitive and enable them to conquer the biggest markets.”

“Cooperatives need to develop in order to respond to market demands, whilst at the same time maintaining contact with locality”, said Bruni, insisting that it is essential for cooperatives to improve synergies through mergers and acquisitions or joint actions.

The president of COGECA went on to explain that wine cooperatives need to develop in order to respond to market demands, whilst at the same time maintaining contact with locality. He said that wine cooperatives have to adapt not only to meet consumer demands but also to meet the demands of young consumers. Coordinated actions, such as promotion measures, are necessary and require collaboration of all European wine producers, their organisations and of EU promotion policies. (LC/transl.jl)

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