EU WINE SECTOR REFORMS AND LEGISLATION
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1 EU WINE SECTOR REFORMS AND LEGISLATION Jasna Čačić, PhD.,MBA
2 CONTENT Introduction Wine and Common Agriculture Policy (CAP) Wine Common Market Organisation (CMO wine) Reforms reasons and objectives Conclusions
3 Introduction EU wine sector Importance of the sector within EU Wine production -175 mil hl wine/year (2013/2014) 45% of wine-growing areas 65% of global wine production 57% of global wine consumption
4 Wine-growing areas in the world
5 Introduction EU wine sector 70% of exports 2.4 mil wine producers 2.2 mil employees in wine sector Wine production - 5% of the total value of agricultural production in EU
6
7
8 Introduction of Common Wine Policy Reg. 2005/70 categorisation of vines for each region Reg.816/70 basic provisions for CMO wine implementation Reg. 1338/70 - classificatin of vine varieties Reg. 817/70 provisions aimed at quality wines
9 Common Market Organisation of Wine (CMO wine) Developed progressively Most complex CMO under EU CAP Far-reaching rules Short period of balance on the wine market Increase of production Constant level of demand
10 Wine market situation in the 1980s Years of crisis for the wine sector Overproduction Continuous decline in demand Exploding expenditure
11 Reg. 822/87 and Reg. 823/87 Reg.1493/1999 to keep competitiveness and balance between supply and demand Combination of economic and qualitative rules To stabilise markets and insure fair living standard for producers
12 Objectives of the 1999 reform Achieving better balance between supply and demand on the Community market Bringing production into line with a market demanding higher quality products Competitiveness of the sector in the long term
13 Reg. 1493/1999 Reg. 1282/ declarations Reg. 1227/2000 production potentials Reg. 2729/2000 controls Reg. 1623/2000 market mechanisms Reg. 884/2001 accompanying documents and registers Reg. 883/2001 trade with third countries Reg. 1607/2000 quality wines Reg. 1622/2000 oenological practices Reg. 753/2002 labelling
14 Results of the wine reform Wine surpluses on the market not reduced Increasing expences Decline in consumption Imbalance between supply and demand Loss of competitiveness against new world wine producing countries Complexity of the legal framework that constrains producers
15 Next steps new reforms: Reform of the Common Agriculture Policy (CAP) Reform of the Wine Common Market Organisation (CMO)
16 Reforms of the Common Agriculture Policy (CAP) Year 2003 Introduction of Single Payment Scheme (SPS) Cross compliance and environmental programs Strengthening of the rural development policy Simplification of CAP Single common market organisation Reg. 1234/2007
17 Reform of the wine sector in two phases Phase I 2008 Phase II 2009
18 2007 Reg. 1234/2007 Single common market organisation 555/2008 support programs, trade, production potential, 2008 controls Phase I Reg. 479/ / vineyard register, declarations, accompanying documents /2009 categories of vine products, oenological practices Phase II Reg. 491/ /2009 PDO, PGI, traditional (amending 1234/2007) terms, labelling
19 Objectives of the wine sector reform Increasing competitiveness of EU wine producers Strengthening the reputation of the EU quality wines Recovering old markets Winning new markets in the EU and worldwide Clear, simple and effective rules Preserving the best traditions of EU wine Balance between supply and demand Social and economic strengthening of rural areas
20 MAIN CHANGES IN THE NEW CMO National financial envelops Rural development and environmental protection in wineproducing area Phasing-out of distillation schemes and eliminating subsidies for distillation into alcohol
21 Introducti on of SPS Grubbing-up and promoting replacement with alternative crops Reducing vine surface plant with poorly marketable varietals Simpler labelling rules based on PDO and PGI Lower limits for added sugar and must
22 CAP Reform after 2013 New regulations Reg. 1305/2013 Reg. 1306/2013 Reg. 1307/2013 Reg. 1308/2013 Rural development Horizontal issues Direct payment Market measures, repealed Reg. 1234/2007
23 Reg. 1308/2013 Support programs in wine sector Oenologic al practices and methods of analysis PDO, PGI, traditiona l term, labelling Trade with third countries Categories of grape vine products Winegrowing zones
24 CONCLUSIONS Reforms of the Wine CMO in response to ongoing market challenges New competitive strategy of the wine sector Maintaining position as strong player on the international wine market Greater importance to PDO and PGI wines
25 CONCLUSIONS Simplification of the rules key requirement of each reform Reform implemented on the EU institutional level Questionable implementation in Member States
26 THAN YOU FOR YOUR ATTENTION!
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