Handbook for Wine Supply Balance Sheet. Wines

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1 EUROPEAN COMMISSION EUROSTAT Directorate E: Sectoral and regional statistics Unit E-1: Agriculture and fisheries Handbook for Wine Supply Balance Sheet Wines Revision 2015

2 1 INTRODUCTION Council Regulation (EC) No 479/ of 29 April 2008 laid down the new common market organisation (CMO) for wine. This regulation was incorporated in 2009 by Regulation 491/ into the Single CMO, replaced in 2013 by Council Regulation (EU) 1308/ Commission Regulation (EC) No 436/ of 26 May 2009 lays down detailed rules as regards the gathering of information to identify wine products and to monitor the wine market. It lays down the procedures concerning harvest, production and stock declarations. Article 19.2 requires that Supply Balance Sheet reports mentioned under Art. 19.1b must be sent to Eurostat. Balance sheets are built by campaign and give a complete overview of the evolution of the Wine market and therefore are indispensable for implementing the above-mentioned regulations and in particular for the management of the wine market. The Wine Supply Balances are drawn up for the customs territory of the Member States, defined in accordance with the Council Regulation (EC) No 471/ of 6 May DEFINITIONS OF WINES 2.1 Products The Wine Supply Balance Sheet concerns products as defined in Annex IV of Regulation No 479/2008, integrated in the single CMO Regulation (EC)1308/2013 as Annex VII, Part II. The following products are included: Wine: alcoholic beverage obtained exclusively by total or partial alcoholic fermentation of pressed grapes whether fresh or not, or of grape must. The new wines still in fermentation are included. Included are as well sparkling as still wines. The following products are excluded: Grape juice Vinegar Grape marc Piquette Wine-based alcohols Flavoured vermouths and wines However, the grape must and wine used for the production of these products are included. The definition of wine also excludes "fruit wines produced from fruit other than the grape OJ L 148 of , p. 1 OJ L 154 of , p.1 OJ L 347 of , p. 671 OJ L 128 of , p.15 OJ L 152,of , p. 23 1

3 2.2 Wine categories Returns of harvest, production and stock defined by Regulation (EU) No 436/2009 are broken down according to the wine category. The following wine categories are classified: Wines with Protected Designation of Origin (PDO) Wines with Protected Geographical Indication (PGI) Varietal wines without PDO/PGI Other wines PDO and PGI wines are wines which benefit from the European quality label. Wines produced in the third countries can also benefit from PDO/PGI if they are recognised. The protected wines are included in the e-bacchus wine database 6 Varietal wines are wines which are made primarily from grape varieties indicated clearly on the label like Chardonnay, Shiraz, Merlot, etc. However, if these wines benefit from a PDO or PGI label they will be classified under PDO/PGI. Annex IV and V of Regulation No 436/2009 consist of 5 wine categories instead of the abovementioned 4. In the Wine Supply Balance Sheets wines without PDO/PGI and other than varietal wines are grouped in "Other wines". Wines originating from the third countries are to be classified under the same category as wines originating from the European Union. 2.3 Breakdown by colour The statements of harvest, production and stock defined by Annex IV and V of Regulation No 436/2009 are broken down according to colour into white and red wines. The rosé wines are included in the category of red wines. 6 "E-Bacchus" is a database which lists non-eu countries' geographical indications and names of origin protected in accordance with bilateral agreements on trade in wine concluded between the EU and the non-eu countries concerned It consists also of the Register of designations of origin and geographical indications protected in accordance with Council Regulation (EU) 1234/

4 3 DEFINITIONS OF BALANCE ITEMS 3.1 Stocks (1), (7) 7 As defined by Regulation (EU) 436/2009 the final stocks are counted at the end of a marketing year n-1/n on 31 July n. The opening stocks of a marketing year (1) are by definition the same as the closing stocks (7) of the previous campaign. If the data differ because of methodological reasons, the difference needs to be explained. The stocks include wine and grape must intended for wine making, held both at production level and at the wholesale trade level. They include all products included in the Balance Sheet, broken down by quality and colour except vinegars, vermouths and flavoured wines. The stocks held by farmers who market their wines are counted in the stocks at the production level (1.1 and 7.1). The stocks of traders, who own vineyards, are counted in the stocks at trade level (1.2 and 7.2). The stocks of imported wines are counted in the stocks at trade level (1.2 and 7.2). The stocks at the retail trade level and in households are included in the human consumption (6.1). The total stocks (1 and 7), which are shown in the provisional and final balance, are the sum of the stocks held at the production and trade levels. Figure 1. Composition of the stocks. 3.2 Production (2) The total grape must production (2) includes all wine and must production. It consist of production of grape must intended to other use other than wine (2.1.): o must intended solely for grape juice (2.1.1.) and o losses due to evaporation during the musts concentration process (2.1.2.) production intended for vinification ( usable production ) (2.2.). This includes all wines but also all must (both concentrated and unconcentrated). The concentrated must is accounted in volume (Figure 2). 7 The figures between brackets refer to the item codes in Annex I. 3

5 Producers' own consumption is included The latter represents the production of grape must and of must intended for wine production (2.2) which constitutes the usable production. Figure 2. Composition of the production. The wines made of musts during the previous campaigns are not included in the production because they are already included in the opening stocks of the campaign. Also the concentrated musts made during the previous years are not included because they are already included in stocks. 3.3 External trade of Wine and Grape Must External trade is divided into imports (3) and exports (5). Imports mean imports of wines from the third countries produced in the third countries (3.1) as well as imports from the other Member States (3.2) (Figure 3). The community wines, which are reimported from the third countries (such as Switzerland, United States, etc.), are considered as imports. 4

6 Figure 3. Composition of imports. Exports mean exports to the third countries (5.1) and to the other Member States (5.2) (Figure 4). Figure 4. Composition of exports. The Member States need to use customs statistics (COMEXT regime 1) to establish the trade with the third countries and with the other Member States. The combined nomenclature (CN2204) codes used in COMEXT are listed in Annex II. The codes are updated annually. In the case of imports of must originating from another Member State and intended for wine production in the importing Member State, the must is included as import of wine. It will be counted as export by the country of origin. 5

7 External trade of bottled wines with the third countries is taken into account in the import (3.1.1.) and export (5.1.1.). This distinction is done by the CN for bottled still wines (containing up to 2 litres) and for bulk still wines (2 litres or more). All packages above 2 litres (Magnum, BIB) are considered as bulk under the current World Customs Organizations' (WCO) rules. 3.4 Domestic use (6) The domestic use is composed of human consumption, industrial uses, processing and losses (Figure 5). Figure 5. Composition of total domestic use Human consumption (6.1) Human consumption includes the quantities of unprocessed and (sometimes) processed wines and musts used for human consumption. The quantities already entered into the processing are excluded from this item. Producers' own consumption is included, as well as the wine consumed at home or outside home. Losses and variations in stocks at consumer level are included in this item. As Human consumption is not collected by most of the Member States, this item is the subtraction of all other items in the Wine Supply Balance Sheet. It can be calculated by using the following formula: 6.1 =

8 3.4.2 Industrial uses (6.2.) Distillation (6.2.1) The quantities of wine and of wine lees distilled for the production of ethyl alcohol or spirit drinks are shown under this item. They can be intended for: the distillation of wine spirits (eau-de-vie and cognac, brandies, grappa, etc.) ( ) the distillation of the following items according to Regulation 1308/2013 ( ) (from 2012 onwards only By-product distillation) the distillation of alcohol following national PDO/PGI regulations (exceeding yield classes) ( ) the national crisis distillations ( ) Vinegar production (6.2.2) This item covers the quantities of wine used for the production of vinegar Processing (6.3) This item covers the quantities of wines used for the transformation into vermouth and flavoured wines Losses (6.4) This item includes the losses during the production phase and in the marketing sector (during storage, transport, conversion and packaging of wines). This class doesn t include the lees distilled as by-products which must be assigned to the corresponding item AGGREGATES AND UNITS 4.1 Aggregation rules The total resources (4) are calculated as the sum of: opening stocks (1) usable vinified production (2.2.) imports (3) 7

9 The total resources must be equal (in balance) (Figure 6) to the total uses (8), i.e. the sum of: exports (5) total domestic use (6) closing stocks (7) Wine balance per campaign Opening stocks (1) Exports (5) Usable vinified production (2.2) Total domestic use (6) Imports (3) Closing stocks (7) Figure 6. Wine balance per campaign. Total internal use (6) is calculated as the sum of: human consumption (6.1.) industrial uses (6.2.) processing (6.3.) losses (6.4.) Industrial uses are subdivided into distillation (6.2.1) and vinegar manufacture (6.2.2). 4.2 Reporting units The unit of measure is hectolitre (hl) of wine. One hectolitre is 100 litres. Must is always expressed in wine-equivalent. Member States provide the conversion coefficients (Article 15.1 of Regulation (EU) 436/2009). Member States may send data including 3 decimals. 4.3 Marketing year and calendar year The wine campaign runs from 1 August to 31 July. The harvest taken into account for this is that of the first year; i.e. for a balance covering the campaign from 1 August of year n-1 to 31 July of year n, the harvest taken into account will be that of year n-1. For the campaign , where n=2014, the harvest to be taken in account will be the harvest of 2013 as grapes have grown during spring 2013 and have been turned into grape must during autumn

10 5 TRANSMISSION TO EUROSTAT 5.1 Transmission deadlines Article 19.2 do specifies that following Wine Supply Balance Sheets mentioned under Article19.1b must be sent to Eurostat: Provisional report (Balance sheets) on the previous wine each year, not later than 15 December Final report on the wine year before the previous wine year each year, not later than 15 March Table 1. Example of the data transmission deadlines (for marketing year 2014/15 (1 August July 2015). Year n=2015) Date for notification Tables 15 March n (2015) 1. the final balance of the last-but-one marketing year n-3/n-2- (2012/2013) 15 December n (2015) 1. the provisional balance of the previous marketing year n-1/n (2014/2015) 15 March n+1 (2016) 1. the final balance of the last-but-one marketing year n-2/n-1 (2013/2014) 5.2 Transmission mode The Wine Supply Balance Sheets have to be transmitted by electronic means through edamis application. Further information on the use of edamis and access rights can be found at the edamis Web Portal: The transmission is done by sing the following Web-Forms: Provisional data: CROPSBS_WINE1PR Final data: CROPSBS_WINE2FI The structure of the Web-Form is presented in Annex 1. 9

11 6 COUNTY NOTES To be added 10

12 ANNEX I : WINE BALANCE SHEET WINE BALANCE SHEET 1 INITIAL STOCKS 1.1 Stocks at production level 1.2 Stocks at trade level 2 TOTAL PRODUCTION 2.1. Other uses than wine Must for grape juice Losses from evaporation 2.2. Wine production = usable production Wine Must and grape juice intended for wine production 3 IMPORTS 3.1. Imports from third countries Bottled Bulk 3.2. Imports from other EU countries Bottled Bulk 4 TOTAL RESOURCES ( ) 5 EXPORTS 5.1 Exports from third countries Bottled Bulk 5.2 Exports from other EU countries Bottled Bulk 6 TOTAL DOMESTIC USE 6.1 Human consumption 6.2. Industrial uses Distillation Wine spirits Regulation 1308/ MS PDO/PGI regulations Crisis distillation Vinegar manufacture 6.3. Processing 6.4. Losses 7 FINAL STOCKS 7.1. Stocks at production level 7.2 Stocks at trade level 8 TOTAL USES (5+6+7) Total-Wine white Total PDO wine white Total PGI wine white Total varietal wine white Total other wine white

13 ANNEX II : Combined Nomenclature Codes (will be updated according to 2015 codes) CN Code Definition 2204 Wine of fresh grapes, including fortified wines; grape must other than that of heading No 2009 : ALL, : other musts ( , , , ) according to Commission Regulation (EC) No 948/2009 of 30 September digit N.C. Category Total P.D.O. wines white wines P.G.I. wines Varietal wines SPARKLING wines BOTTLED wines BULK wines GRAPE MUST Notes: 1. Sparkling wines and wines with 1-3bar, other than white are booked as white sparkling wines 2. Wines exceding 15 Vol may be booked under PDO, unless more specific information available at national level. 3. PGI wines from third countries may be booked under PDO wines, unless more specific information available at national level 5. Grape musts may be booked under white Other wines, unless more specific information available at national level 4. Bulk sparkling wines may be booked under white PDO wines, unless more specific information available at national level 5. For 2009, V.Q.P.R.D wines have to be considered as P.D.O. wines. Total white wines Total white wines OTHER WINES Total white wines 1

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