Towards a sustainable European Wine Sector

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Towards a sustainable European Wine Sector
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Summary

• Why a reform ?
• How to reform?
• Which impacts?

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Summary

• Why a reform ?
• How to reform?
• Which impacts?

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CAP reformsand wine CMO
Wine CMO reform
Wine CMO
Market orientation Consumerconcerns Farm
income Ruraldevelopment Environment
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Consumption by type of wine
Wine market challenges
Source DG AGRI C3
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EU 15 Imports and exports (extra)
Wine market challenges
Source Comext
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Range of products
Type of products ?
Australia
EU
Picture source Google image
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Wine market unbalance
Source DG AGRI C3
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Recent development of table wine price
Pressure on prices
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Farm Income wine vs. all agricultural sectors
Pressure on income
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Mid term forecastsEU27 (status quo)
Source DG AGRI G2
Surplus 1 Availabilities (inc imports) human
consumption (inc exports) industrial uses
Surplus 2
Surplus 1 Potable alcohol distillation
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Reform objectives

• We need a wine regime that
• Increases the competitiveness of the EUs wine
  producers, strengthens the reputation of EU
  quality wine as the best in the world, to recover
  old markets and to win ones in the EU and
  worldwide
• Operates through clear, simple and effective
  rules to ensure balance between supply and
  demand.
• Preserves the best traditions of the EU wine
  production and reinforces the social and
  environmental fabric of many rural areas

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Summary

• Why a reform ?
• How to reform?
• Which impacts?

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Summary of proposed changes
One step option
Measures added
Measures simplified
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Summary of proposed changes
two step option first period
Measures added
Measures simplified
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Summary of proposed changes
two step option first period
Measures added
Planting rights
Grubbing-up
Measures simplified
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Summary of proposed changes
two step option second period
Measures added
Measures simplified
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Summary of proposed changes
two step option second period
Measures added
Measures simplified
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Targeted measures
Limiting prod. and proc. constraints
Reinforcing competitiveness
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Targeted measures
Reinforcing farmers market orientation
Achieving a balanced market
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Targeted measures
Reinforcing farmers market orientation
Modernisation of production structures
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Targeted measures
Reinforcing farmers market orientation
Achieving a balanced market
gt gt Funds for higher value for money measures
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Targeted measures
More subsidiarity
Modernisation of structures

• Calculated through objective criteria
• Given menu (including restructuring, crisis
  management measures, green harvesting)
• Subject to common rules to avoid distortion of
  competition
• Subject to specific national program to be
  approved by the Commission

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Targeted measures
Simplified and consumer oriented measures
Recover and win market shares

• Clearer, simpler and more transparent rules
• More flexible wine making practices
• End of sugar use gtgt only use of musts (without
  aid) within smaller limits (2 and 1 in zone
  C).
• WTO compatibility
• End of ban of imported musts for vinification
• End of ban of EU wine coupage with imported
  wines

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Targeted measures
Simplified and consumer oriented measures
Recover and win market shares
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Targeted measures
Simplified and consumer oriented measures
Recover and win market shares
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Targeted measures
Simplified and consumer oriented measures
Recover and win market shares
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Targeted measures
Modernisation of structures
Safeguarding local economy
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Targeted measures
Reinforcing environment safeguard
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Targeted measures
Reinforcing farmers market orientation
Achieving a balanced market
Limiting prod. and proc. constraints
Reinforcing competitiveness
Recover and win market shares
Higher value for money
More subsidiarity
Simplified and consumer oriented measures
Modernisation of structures
Safeguarding local economy
Reinforcing environment safeguard
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Summary

• Why a reform ?
• How to reform?
• Which impacts?

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Impact assessment on 4 options

• Option 1 Improved status quo
• Option 2 profound CMO reform
• Option 3 CAP reform (decoupling)
• Option 4 Full deregulation

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Summary of impacts
restrictionsin the useof sucrose
restrictionsin the useof sucrose
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Summary of impacts (2)
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Summary of impacts (3)
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Impacts on income
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Reform agenda

• 16/02/2006 Stakeholders wine seminar
• 22/06/2006 Commission Communication to the
  Council and the Parliament and Impact assessment
  report.
• End 2006 draft legal proposal
• First semester 2007 negotiations
• 2008/2009? application

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• More information
• http//ec.europa.eu/comm/agriculture/capreform/win
  e/index_en.htm
• Thank you