Brussels, 04/07/2007 (Agence Europe) - On Wednesday 4 July, European wine industry and producers' organisations savaged the measures proposed by the European Commission on the same day for reforming the wine common market organisation (CMO) (for details of the proposal, see EUROPE 9460): optional grubbing up of 200,000 hectares of vineyards over five years (against a premium of €7.174 per hectare in the first year, falling to €2.938 in the last year) liberalisation of the sector by 2014, withdrawal of market management measures (crisis distillation, support for by-product distillation, support for potable spirits, private storage aid, export refunds and aid for must for enrichment of wine), banning the use of sugar to enrich wine (all producers will have to make wine purely from grapes and unsubsidised must), making all areas under vines eligible for entitlements for the single farm payment, banning the import of musts for wine making and blending EU wines with wines imported from third countries, and better labelling rules.
The European Farmers Coordination (CPE) denounced the “obstinacy” of the European Commission, which “carries on its project of globalising and restructuring European wine-growing”. “By proposing at the same time a non-differentiated grubbing up representing 7% of the European vineyard and the total suppression of plantation rights from 2013,” the European Commission has abandoned all will for market regulation, the CPE said. It went on in a press release: “Such a policy would have serious consequences on employment (wine-growers, workers in wine cooperatives)”. This organisation, then, criticises the Commission for favouring the industrialisation of the sector.
The Committee of Professional Agricultural Organisations in the EU (COPA) and the General Confederation of Agricultural Co-operatives in the EU (COGECA) rejected the proposal as it stands and accused the Commission of seeking to destroy the traditional European model in favour of a global industrial system. “The proposed reform consists of the introduction into the EU of the industrial wine-growing model of the so-called 'new world' (South Africa, Australia, New Zealand and Chile) and destroying the ancient traditional European model,” said Jean-Louis Piton, head of the COPA wine section, quoted by AFP. “This text does not form a good basis for discussion and European ministers will have a great deal of difficulty in putting things back on an even keel.” COPA and COGECA agree with the grubbing of vines in uncompetitive areas and with the withdrawal of aid for the distillation of unsold wine, but are opposed to the liberalisation of planting rights in 2014 and the methods of labelling of table wines. Planting rights have been regulated for decades and their sudden liberalisation “will destabilise all vineyards, including those which are doing well,” Mr Piton said.
Quality wine producers want the Commission to go back to the drawing board
Spanish, French, Italian and Portuguese producers of wines with designation of origin called on the Commission to “go back to the drawing board”. The ANDOVI (Associação nacional des denominações de Origem vitivinicolas, Portugal), the CNAOC (Confédération nationale des producteurs de vins et eaux-de-vie de vin à appellations d'origines contrôlées, France), the CONFERENCIA (Conferencia Española Consejos Reguladores Vitinicolas, Spain), the FEDERDOC (Confederazione nazionale dei consorzi volontari per la tutela delle denominazione de origine, Italy) and the IVDP (Instituto des Vinhos de Douro e do Porto, Portugal) criticised the unclear definition of designation of origin proposed by the Commission in its draft reform. The Commission says the origin of the grapes is sufficient for the granting of the appellation of origin, independently of where the grapes are made into wine. “This proposal is unacceptable because it puts in question 200 years of history: we need to maintain a strong link with the 'terroir'. We refuse that the wine making process could be done hundreds or thousands of kilometres away from the area where the grapes come from,” said FEDERDOC President Riccaro Ricci Curbastro. These five organisations are against plantation liberalisation from 2014, which could lead to an additional million hectares for designation of origin wines. “The freedom to plant new vines risks unbalancing the market of wines with a designation of origin, which will be faced with overproduction, price cutting, etc. This could eventually undermine our qualitative efforts,” said Christian Paly, president of the CNAOC. Quality wine producers said they were “very disappointed” at the weakness of the Commission's proposal with regard to promotion. The Commission has proposed €120 million per year for promotion in third countries and a “ridiculous budget” of €3 million for the promotion of wines within the EU. “Looking at the Commission's proposal, we believe that it has not fully understood where the priorities lie: the smallest budget is allocated to the internal market which represents 67% of the world market,” said Joaquim Madeira, president of the ANDOVI. “We do not understand why the Commission agrees to the registration of wines with a geographical indication from third countries which are in conflict with prestigious European designations of origin,” said Jorge Monteiro, president of the IVDP. “The Commission has tabled a proposal which is too liberal and which will harm the reputation and the future of the wines with a designation of origin,” claimed CONFERENCIA President Victor Pascual.
Wine industry quite pleased
The European wine industry and trade were quite satisfied with the Commission's proposal. The proposal “constitutes a solid basis for negotiation with a view to achieving the necessary in-depth reform to ensure the competitiveness and sustainable development of the European wine sector,” said the Comité Européen des Entreprises Vins (CEEV), which represents the wine industry and trade in the EU. “If we wish to remain world leader, we need a market-oriented CMO allowing companies and European wines to be more competitive both in the internal market and in external markets,” said CEEV President Lambert Vallarijno Gancia. The CEEV is particularly pleased that, in its proposal, the Commission took account of the inappropriate nature and considerable cost of current market management measures, the need for adaptation of production to better meet market expectations, and the importance of displaying greater ambition towards winning new consumers and conquering new markets. This sector of the industry has some regrets, however, such as “the lack of a really proactive and ambitious European external trade strategy, with appropriate means”. (lc)