Ex-post evaluation of the. Common Market Organisation for wine. Annex

Transcription

1 Ex-post evaluation of the Common Market Organisation for wine Annex Prepared for: European Commission - DG Agriculture Tender AGRI / EVALUATION / 2002 / 6 This study has been financed by the Commission of the European Communities. The conclusions, recommendations and opinions presented in this report reflect the opinion of the consultant and do not necessarily reflect the opinion of the Commission. Innova SpA Via della Scrofa Rome Italy Tel Fax

2 CONSORTIUM INNOVA SpA (Italy) Coordinator Mr Aleardo Furlani, Ms Rebeca Lucas, Ms Valentina Gentile EUROQUALITY (France) Mr Olivier Chartier, Mr Marc Ponsar Fundación para el Desarollo de la Ciencia y Tteconología en Extremadura (FUNDECYT) (Spain) Mr Carlos Cabo, Ms Manon van Leeuwen FORSCHUNGSANSTALT GEISENHEIM (Germany) Dr Dieter Hoffmann, Dr Karl-Heinz Bock, Dr Jana Seidemann SPI SA (Portugal) Mr Pedro Vieira, Mr Douglas Thompson PHYTOWELT GMBH (Germany) Mr Peter Welters HTTC (Greece) Mr Kyriakos Loukakis Mr JOHN MALCOLM Consultant (UK) Internal Page 2 / 479

3 TABLE OF CONTENTS 2. INTRODUCTION ANNEX TO CHAPTER 2 (OVERVIEW OF THE WINE MARKET) The wine market overview of key developments Market situation: macro-economic trends with special focus on table wine markets Short description of the wine sector in each country: the systems for processing grapes and marketing wine FRANCE GERMANY ITALY GREECE SPAIN PORTUGAL UNITED KINGDOM ANNEX TO CHAPTER 3 (THE COMMON MARKET ORGANISATION FOR WINE) Basic principles and historical background of the old CMO Short description of important rules of the new CMO not in focus of this evaluation Organisation Rules in the new CMO Producer - and sectoral organisations Detailed description of the instruments in focus of this evaluation Planting rights, restructuring and conversion Distillation Private storage Regulatory measures and aids for specific uses Measures concerning trade with third countries Market equilibrium: the problem of quantification Review of indicators and calculations used to identify and quantify the surplus Implementation calculation of some indicators Quantification of the surplus at EU level ANNEX TO CHAPTER 4 (PLANTING RIGHTS) Structuring of the questions Sub-question 1 market equilibrium Understanding Judgement criteria and Indicators Sub-question 2 prices Understanding Judgement criteria Indicators Internal Page 3 / 479

4 Sources Sub-question 3 market requirements Understanding Judgement criteria and Indicators Sub-question 4 production cost Understanding Judgement criteria and Indicators Sources Implementation of the planting right measures Recall of the main principles Implementation of the measure in the Member States Evolution of the area Description of the evolution of the vineyard area Analysis of the area evolution: Impact of the CMO instruments influencing vineyard area Area and production: the influence of yield Planting rights and market equilibrium Influence of the Premium for permanent abandonment on the surplus Analysis of abandonment premium for FRANCE Area and prices ANNEX TO CHAPTER 5 (DISTILLATION) Introduction Results of the analysis Overview about importance of wine distillation measures in the Member States Empirical evidence concerning the use of table wine distillation measures in different market situations Impact on market prices Impact on market equilibrium in volume terms EU expenditures for the distillation measures Distillation of by-products ANNEX TO CHAPTER 6 (AID FOR PRIVATE STORAGE) Introduction Understanding Judgment Criteria Indicators Data needed Sources Analysis of the measure aid for private storage Evolution and distribution of quantities of table wine and grape musts under private storage contracts Effects on Prices Revenues from private storage Internal Page 4 / 479

5 Regional analysis ANNEX TO CHAPTER 7 (REGULATORY MEASURES) INCREASING THE NATURAL ALCOHOLIC STRENGTH Results General impact of authorization to use methods for increasing the natural alcoholic strength on production volume Empirical analysis concerning changes in production volume depending on the use of CM or RCM The impact on wine prices where methods to increase alcoholic strength are not indicated The impact of the EU aid for the use of CM and RCM on the costs of enrichment The impact of EU aid for the use of CM and RCM on the market volumes of wine and sucrose The impact of the aids given for the use of CM and RCM in the EU for the budget GLOBAL ASSESSMENT OF THE REGULATORY MEASURES Results of the interviews Labelling rules size of indications, example ANNEX TO CHAPTER 8 (TRADE WITH THIRD COUNTRIES) Structuring Introduction Price stabilisation Competitive position Volume and composition of supply Capacity of EU wine sector to meet market demand Analysis Introduction Evolution & key features of CMO measures from 1988 to Statistical definitions Statistical analysis of data on external trade Interviews with experts Statistical Annex Tables and graphs for statistical data using 4-digit codes Tables and graphs for statistical data using 6-digit codes Tables and graphs for statistical data using 8-digit codes Analysis of the application of the individual third country trade measures Import duties Export refunds Bilateral agreements Results of interviews with experts ANNEX TO CHAPTER 9 (RESTRUCTURING AND CONVERSION) Impact of the restructuring and conversion measure on the vineyard area in the EU Internal Page 5 / 479

6 Understanding Judgement criteria Indicators Sources Analysis (Impact of the measure on the area under vine of the EU) Impact of the restructuring and conversion measure on the market requirement Understanding Judgement criteria Indicators Sources Analysis (Market development) Impact of the restructuring and conversion measure on the price level Understanding Judgement criteria Indicators Sources Analysis (Impacts on the price level) ANNEX TO CHAPTER 10 (PRODUCER S INCOME AND PRODUCTION STRUCTURES) Introduction Joint impact on the level and development of winegrowers incomes Development of Farm Incomes at EU Level Development of Farm Incomes at Country Level The Make-up of Farm Incomes Farm incomes at regional level Comparison with other types of farms Effect of CMO Measures on Development of Farm Incomes at EU and Country Level Joint impact on the production structure Developments in the size and number of holdings Regional distribution of production Intensity of grape production Development of the processing and marketing system in typical wine growing regions Internal Page 6 / 479

7 LIST OF TABLES Table 1 Evolution of production, stock, human consumption, exports and distillation of table wine at EU level...26 Table 2 Evolution of production, stock, human consumption, exports and distillation of table wine in Italy...28 Table 3 Evolution of production, stock, human consumption, exports and distillation of table wine in Spain...30 Table 4 Evolution of production, stock, human consumption, exports and distillation of table wine in France...32 Table 5 Evolution of production, stock, human consumption, exports and distillation of table wine in Portugal...33 Table 6 Wine consumption per inhabitant (in L/Hbt) and evolution...37 Table 7 Trend in wine consumption in France...38 Table 8 Evolution in the wine consumption in France...38 Table 9 Distribution channels for wine in Germany...40 Table 10 Number of vine farms (aziende viticole)...42 Table 11 Wine (and must) production by region (1.000 hectolitres)...44 Table 12 Allocation of domestic purchases by volume per area Year Table 13 Allocation of domestic purchases in volume by sales channel Table 14 Evolution of volume of purchases of wine by channel of distribution...47 Table 15 Mark-ups per distribution channel...47 Table 16 Per capita consumption of wine (11%alc.) in litres...48 Table 17 Number of wine growers and evolution...50 Table 18 Distribution channels for wine in Greece...51 Table 19 The regulation of D.O.C. Rioja...53 Table 20 Top Spanish Wine Regions: Table 21 Evolution of the marketed quantity of wines from RIOJA (litres)...56 Table 22 Importance of cooperatives and independent wine makers in the total production...61 Table 23 Wine regions, regions producing quality wine psr and DOC regions...62 Table 24 Wine consumption...63 Table 25 Composition of UK Wine Consumption in 1992 and Table 26 Distribution of newly created planting rights allocated to Member States (in ha)...72 Table 27 National aids for crisis distillation...84 Table 28 Legislation on aid for private storage...85 Table 29 Private storage contracts in Italy from 1991/1992 to 2001/ Table 30 Legal Framework on Trade with third countries (before 1999) Table 31 Products to which apply common market organization, Reg. (EE) 822/ Table 32 Legal Framework on Trade with third countries (after 1999) Table 33 Products to which apply common market organization, Reg. (EE)1493/ Table 34 Trade Agreements Table 35 Indicators of surplus average value per Member States (figures in hl).107 Table 36 Annual EU Wine Production, Surplus & Distillation Compared (in million hl) Table 37 Data for surplus calculation of total wines market in EU (in 1000 hl) Table 38 Data for surplus calculation of quality wine psr market in EU (in 1000 hl) Table 39 Data for surplus calculation of table wine market in EU (in 1000 hl) Table 40 Data for surplus calculation of other wines market in EU (in 1000 hl) Table 41 Data for surplus calculation of total wines market in France (in 1000 hl) Internal Page 7 / 479

8 Table 42 Data for surplus calculation of quality wine psr (quality wine psr) market in France (in 1000 hl) Table 43 Data for surplus calculation of table wine market in France (in 1000 hl) Table 44 Data for surplus calculation of other wines market in France (in 1000 hl) Table 45 Data for surplus calculation of total wines market in Spain (in 1000 hl) Table 46 Data for surplus calculation of quality wine psr market in Spain (in 1000 hl) Table 47 Data for surplus calculation of table wine market in Spain (in 1000 hl) Table 48 Data for surplus calculation of other wines market in Spain (in 1000 hl) Table 49 Data for surplus calculation of total wines market in Italy (in 1000 hl) Table 50 Data for surplus calculation of quality wine psr market in Italy (in 1000 hl) Table 51 Data for surplus calculation of table wines market in Italy (in 1000 hl) Table 52 Data for surplus calculation of other wines market in Italy (in 1000 hl) Table 53 Total Vineyard area in the EU (in ha) Table 54 QWPRS and Other wine area in the EU Table 55 Vine and wine area in Germany Table 56 Vine and wine area in Greece Table 57 Vine and wine area in France Table 58 Vine and wine area in Italy Table 59 Vine and wine area in Spain Table 60 Vine and wine area in Portugal Table 61 Wine-Grape growing Areas and Changes in Areas 1990 to Table 62 Comparison of Quality Wine-growing Areas and Rates of Change Table 63 Evolution of the Greek vineyard area Breakdown by region (1 000 Ha) Table 64 Evolution of the Italian vineyard area Breakdown by region (1 000 Ha) Table 65 Evolution of the Portuguese vineyard area Breakdown by region (1 000 Ha) Table 66 Evolution of the Spanish vineyard area Breakdown by region (1 000 Ha) Table 67 Area grubbed with premium (under Regulation 1442/1988) in ha Table 68 Area grubbed with premium (national aid excluded) under Regulation 1493/99 (in ha) Table 69 New planting in ha Table 70 Synthesis of area and production evolution and average yields 1988/ Table 71 Quantification of EU surplus using simplified balances (total wine ) (figures in HL) Table 72 New surplus calculated with constant area and lower yield Table 73 Comparison of surplus Table 74 New surplus calculated with constant area and lower yield Table 75 Comparison of surplus Table 76 New surplus calculated with constant area and lower yield Table 77 Comparison of surplus Table 78 New surplus calculated with constant area and lower yield Table 79 Comparison of surplus Table 80 Simulation on the wine volume taken off the market thanks to premium for permanent abandonment in the EU, Germany and Greece (Hl) Table 81 Simulation on the wine volume taken off the market thanks to premium for France and Italy (1 000 Hl) Table 82 Simulation on the wine volume taken off the market thanks to premium for Portugal and Spain (1 000 Hl) Table 83 Simulation on percentage of production taken of the EU market thanks to premium (1 000 Hl) Internal Page 8 / 479

9 Table 84 Simulation on percentage of surplus avoided thanks to premium (1 000 Hl) Table 85 Average variation of wine area and production for different period Table 86 Area grubbed with premium n France (total grape area in Ha) Table 87 Area grubbed with premium in France (wine area in Ha)) Table 88 Area grubbed per vine variety in France (in Ha) Table 89 Table wine prices in constant Euro Table 90 AOC wine price in constant Euro Table 91 Buying-in prices for wine used for the different distillation measures in the EU before and after the reform of Table 92 Italy: wine production and distillation by region Table 93 Quantities of wines distilled in Germany according to different sources (quantities in 1000 hl) Table 94 Factors explaining the distillation quantities at European table wine markets. Results of linear regression analysis Table 95 Impact of distillation quantities on table wine market prices of red Puglia and white Sicilian table wines - results of linear regression analysis Table 96 Impact of distillation quantities on table wines in Charentes - Results of linear regression analysis Table 97 Factors explaining the changes of stock quantities in European table wine markets. Results of linear regression analysis Table 98 Estimation of cost of EU-aid for distillation for taking away one litre of wine by distillation of dual purpose grapes (without expenditures for alcohol buying-in) Table 99 Estimation of cost of EU-aid for distillation for taking away one litre of wine by preventive distillation in 1999/ Table 100 Estimation of cost of EU-aid for distillation for taking away one litre of wine by support distillation in 1999/ Table 101 Estimation of cost of EU-aid for distillation for taking away one litre of wine by distillation for potable alcohol in 2000/ Table 102 Estimation of cost of EU-aid for distillation for taking away one litre of table wine by obligatory distillation in 1991/ Table 103 Estimation of cost of EU-aid for distillation for taking away one litre of wine by crisis distillations in the years after the implementation of the new CMO Table 104 Humus fertilizer, cost and nutrient value Table 105 Estimation of EU-aid for distillation of one litre of wine included in by-products (without expenditures for alcohol buying-in) Table 106 Quantities of wine under private storage contracts compared with production, domestic availability and stocks at EU level Table 107 Quantities of table wine under private storage contracts per country (1000HL) Table 108 Distribution of aid for private storage per product at EU level (1000HL) Table 109Aid for private storage of grape must per country (1000HL) Table 110 Aid for private storage of concentrated grape must and rectified concentrated grape must per country (1000HL) Table 111 Quantities of wine under private storage contracts compared with production, domestic availability and stocks in Italy (1000Hl) Table 112 Distribution of aid for private storage per product, Italy (1000HL) Table 113 Quantities of wine under private storage contracts compared with production, domestic availability and stocks in Spain (1000Hl) Table 114 Distribution of aid for private storage per product in Spain (1000HL) Table 115 Quantities of wine under private storage compared with production, domestic availability and stocks in France Table 116 Distribution of aid for private storage per product in France (1000HL) Internal Page 9 / 479

10 Table 117 Quantities of wine under private storage contracts compared with production, domestic availability and stocks in Portugal Table 118 Distribution of aid for private storage per product in Portugal (1000HL) Table 119 Monthly Prices (Euro/ Vol/Hl) of Red Table Wine*, Bari (Puglia) ** Table 120 Monthly Prices of Red Table wine, Bari (Puglia) Table 121 Monthly Prices of red table wine* for Reggio Emilia (Emilia Romagna) Table 122 Monthly Prices of red table wine* for Roma (Lazio) Table 123 Monthly Prices of white table wine* for Trapani (Sicily) Table 124 Monthly Prices (Euro/ Vol/Hl) of Red Table Wine*, Italy** Table 125 Monthly Prices (Euro*Hl) of Red Table Wine*, Italy** Table 126 Exercise 1 Revenues from private storage Table 127 Exercise 2. Regional Prices December (Y), September (Y+1) and Revenues Table 128 Exercise 2.Storage cost and Net Revenues (September Y+1) Table 129 Exercise 2. Revenues comparison Table 130 Calculation of revenues under the assumption that aid fully covers costs of storage Table 131 Regional production of table wine in Italy. Wine years 1997/ /03 (Hl) Table 132 Quantities of table wine under private storage contracts in Italy (Hl).*Wine years 1994/ / Table 133 Quantities of table wine under private storage contracts in Italy. Wine years 1994/ /03. % Table 134 Production and quantities of table wine under private storage contracts in Italy (Hl). Average Wine years 1997/ / Table 135 Wine years 1994/ /03, quantities of table wine under private storage and n. of producers, average values per region Table 136 Average quantities of table wine under private storage contracts (Hl) and number of contracts concluded per type of producers Table 137 Quantities of table wine under private storage contracts (Hl) and number of contracts concluded per type of producers for Veneto, Emilia Romagna, Lazio, Puglia and Sicilia Table 138 Data on private storage of grape must in Italy. Wine years 1997/ / Table 139 Data on private storage of grape must in Italy. Average wine years 1997/ / Table 140 Regional production of concentrated grape must in Italy (Hl). Wine years 1997/ / Table 141 Data on private storage of concentrated grape must in Italy. Wine years 1997/ / Table 142 Data on private storage of concentrated grape must in Italy. Average wine years 1997/ / Table 143 Regional production of rectified concentrated grape must in Italy (Hl). Wine years 1997/ / Table 144 Data on private storage of rectified concentrated grape must in Italy. Wine years 1997/ / Table 145 Data on private storage of rectified concentrated grape must in Italy. Average wine years 1997/ / Table 146 Quantities of table wine under private storage contracts in France (1000Hl)* Table 147 Private storage in Languedoc Roussillon Wine years 1995/ /03 ( Hl)..313 Table 148 Table wine, production and quantities under private storage (Hl), per wine year, Languedoc Roussillon Table 149 Private Storage in Castilla - La Mancha, Spain. Wine years 2000/ / Table 150 Short overview of important viticultural methods for increasing the natural alcoholic strength of wine Table 151 The authorization to use sucrose in the different wine-growing zones of the EU Internal Page 10 / 479

11 Table 152 Calculated estimation of volume effects of enrichment with CM / RCM all quantities in 1000 hl in EU Table 153 Most important oenological practices in EU Member States Table 154 Impact of oenological practices allowed by CMO wine to produce good wines in EU Member States Table 155 Importance of quality wine regime in EU Member States Table 156 Classification of wines by CN Codes and categories (country of origin, type, colour, alcoholic strength) Table 157 CN codes according to type of wine Table 158 Wine (CN Code 2204) Exports from EU to main third countries, annual evolution from 1988 to Table 159 Wine (CN Code 2204) Imports to EU from main third countries, annual evolution from 1988 to Table 160 Total exports Value (in 000 Ecu) of Wine (CN 2204) from main EU producing Member States to third countries and to other EU Member States Table 161 Total exports Quantity (in HL) of Wine (CN 2204) from main EU producing Member States to third countries and to other EU Member States Table 162 Total imports Value (in 000 Ecu) of Wine (CN 2204) to main EU consuming Member States from third countries and other EU Member States Table 163 Total imports Quantity (in HL) of Wine (CN 2204) to main EU consuming Member States from third countries and other EU Member States Table 164 Trade balance in Value (000 Ecu) and Quantity (HL) for wine (CN 2204) Table 165 Value, volume and average prices for exported wines from FR, IT, ES, DE to USA, Canada, Japan Table 166 Value, volume and average prices for imported wines from USA, AUS, CHI to UK, DE, NL, Table 167 Germany, market share of imported wines (%) in volume and value from FR, IT, ES, CHI, AUS, Table 168 United Kingdom, market share of imported wines (%) in volume and value from FR, IT, ES, CHI, AUS, Table 169 Rates of duty on CCT, legal framework Table 170 Rates of duties on CCT: measure application Table 171 Conventional rates of duty on the Common Customs: commitments of EU according to WTO and GATT Table 172 Conventional and autonomous rates of duty of Common Customs Tariff, Table 173 Reference prices and countervailing charges, legal framework Table 174 Reference prices and countervailing charges: measure application Table 175 Fixing the reference prices: example for table wine Table 176 Fixing the countervailing charges for the wine sector from 1984 to Table 177 Preferential rates of duty (tariff preferences and quotas): legal framework Table 178 Preferential rates of duty: measure application Table 179 Import duties, example of tariff preferences for TARIC code Table 180 Example of preferential quotas for Bulgaria for the years 1995, 1996, Table 181 Example of preferential quotas in 1995 for Croatia, Slovenia, former Yugoslav Republic of Macedonia Table 182 Duties on grape must (levy on added sugar and entry prices): legal framework Table 183 Duties on grape must (levy on added sugar and entry prices): measure application Table 184 Example of fixing additional levy to ordinary customs duty for entry prices of concentrated grape must Table 185 Export refunds, legal framework under CMO for wine (Reg. 822/87, 1493/99) Table 186 Export refunds measure application according to R.822/87, R.3290/94 and R.1493/ Internal Page 11 / 479

12 Table 187 URAA: Commitments limiting subsidization of exports for wine in EU Table 188 Expenditure for aid on export refunds ( ) Table 189 Share of refunded exports to the total volume of exports ( ) Table 190 Detailed presentation of fixing of Export Refunds in Eur/HL ( ) Table 191 Regulatory measures: legal framework related to trade with third countries Table 192 Major regulatory measures of CMO for wine related to trade with third countries Table 193 Other indicative regulatory measures of CMO for wine related to trade with third countries Table 194 Content of R.883/2001, laying down detailed rules as regards trade with third countries Table 195 Content of R.753/2002 and its amendments (description, designation, presentation and protection) related especially to trade with third countries Table 196 Bilateral Agreements with third countries: legal framework Table 197 Contents of tariff concession and agreement on trade in wines between EU and Chile Table 198 Contents of agreement on trade in wines between EU and Australia (D.0184/1994) Table 199 Answers to questionnaires sub-question Table 200 Answers to questionnaires sub-questions 2.a and 2.b Table 201 Answers to sub-questions 3.a and 3.b of the questionnaires Table 202 Answers to sub-questions 4.a and 4.b of the questionnaires Table 203 Activities subject to receive funding Table 204 Budget granted to Spain for restructuring and conversion measure ( ) Table 205 Hectares restructured and converted in Spain ( ) (Broken down by Region)423 Table 206 Evolution of the vineyard area (broken down by white variety) in Spain Table 207 Evolution of the vineyard area (broken down by red variety) in Spain Table 208 Average aids per hectares for restructuring and conversion in Spain Table 209 Total expenditure in Italy for restructuring and conversion measure (broken down by regions). Vintage 2000/ Table 210 Initial distribution in Italy for restructuring and conversion measure (broken down by regions). Vintage 2001/ Table 211Vineyards area restructured and converted in France Table 212 Vineyards area for different varieties in France Table 213 Vineyards area for different varieties in Germany Table 214 Vineyards area restructured and converted in Portugal ( ) Table 215 Evolution of the total consumption in Spain Table 216 Wine Price in Italy Table 217 Price of the different wines in Spain Table 218 Indexed FNVA/AWU for quality wine producers at EU and country level Table 219 Indexed FNVA/AWU for quality wine producers at EU and country level Table 220 Indexed FNVA/AWU for non-quality wine producers at EU and country level Table 221 Indexed FNVA/AWU for non-quality wine producers at EU and country level Table 222 Indexed FNVA/AWU for mixed quality/non-quality wine producers at EU and country level Table 223 Correlation coefficients quality wine producers Table 224 Correlation coefficients non-quality wine producers Table 225 Correlation coefficients mixed quality/non-quality wine producers Table 226 Change in FNVA/AWU for specialist vineyards in Bourgogne Table 227 Change in FNVA/AWU for specialist vineyards in Languedoc-Rousillon Table 228 Change in FNVA/AWU for specialist vineyards in Toscana Internal Page 12 / 479

13 Table 229 Change in FNVA/AWU for specialist vineyards in Sicilia Table 230 Change in FNVA/AWU for specialist vineyards in Castilla-La Mancha Table 231 Questionnaire responses on joint effect of CMO measure on wine producer incomes.459 Table 232 Indexed AWU for quality wine producers Table 233 Indexed AWU for non-quality wine producers Table 234 Indexed AWU for mixed quality/non-quality wine producers Table 235 Average number of wine specialists at EU level Table 236 Evolution in Quality Wine production in Italian regions Table 237 Evolution in Table Wine production in Italian regions Internal Page 13 / 479

14 LIST OF GRAPHS Graph 1 Development of the wine self sufficiency (% in terms of volume)...21 Graph 2 Share of world wine export volume (in %)...22 Graph 3 Wine market balance EU-15 (in 1000 hl)...22 Graph 4 Development of wine imports in the world (in 1000 hl)...23 Graph 5 Development of wine exports in the world (in 1000 hl)...23 Graph 6 NC 2204 Exports and Imports to third countries (in hl)...24 Graph 7 NC 2204 Export and Import to third countries (in 1000 Euro)...24 Graph 8 Market situation for table wine at EU level...25 Graph 9 Market situation for table wine in Italy...27 Graph 10 Market situation of table wine in Spain...29 Graph 11 Market situation of table wine in France...31 Graph 12 Market Situation for table wine in Portugal...34 Graph 13 Table wine market Greece...35 Graph 14 Distribution channels for wine in Spain...57 Graph 15 Wine Consumption in Spain (Quantities in 1000 hl)...59 Graph 16 Obligatory distillation quota for different yields per hectare in Italy, France and Spain...84 Graph 17 Percentage of EU wine production distilled Graph 18 Development of annual total wine surplus in EU wine market Graph 19 Development of annual quality wine psr surplus in EU wine market Graph 20 Development of annual table wine surplus in EU wine market Graph 21 Development of annual other wine surplus in EU wine market Graph 22 Development of annual total wine surplus in wine market France Graph 23 Development of annual quality wine psr (quality wine psr) surplus in wine market France Graph 24 Development of annual table wine surplus in wine market France Graph 25 Development of annual other wine surplus in wine market France Graph 26 Development of annual total wine surplus in wine market Spain Graph 27 Development of annual quality wine psr surplus in wine market in Spain Graph 28 Development of annual table wine surplus in wine market Spain Graph 29 Development of annual other wine surplus in wine market Spain Graph 30 Development of annual total wine surplus in wine market Italy Graph 31 Development of annual quality wine psr (quality wine psr) surplus in wine market Italy Graph 32 Development of annual table wine surplus in wine market Italy Graph 33 Development of annual other wine surplus in wine market Italy Graph 34 Evolution of EU vine area since Graph 35 Evolution of EU wine area since Graph 36 Vineyard area and wine production Graph 37 Yield and production Graph 38 Indexed evolution of yield, production and area Graph 39 Trends in yield for the 6 main producing countries since Graph 40 Trends in yield in Spain since Graph 41 Trends in yield in France since Graph 42 Trends in yield in Italy since Graph 43 Trends in yield in Greece since Internal Page 14 / 479

15 Graph 44 Trends in yield in Portugal since Graph 45 Trends in yield in Germany since Graph 46 Evolution of Surplus and area Graph 47Evolution of Surplus and yield Graph 48 Trends in Surplus evolution in the EU (surplus 1) Graph 49 Trends in surplus in France (surplus 1) Graph 50 Trends in surplus in Italy (surplus 1) Graph 51 Trends in surplus in Spain (surplus 1) Graph 52 Comparison of surplus 1 (actual and rectified) EU Graph 53 Comparison of surplus 2 (actual and rectified) EU Graph 54 Comparison of surplus 1 (actual and rectified) in France Graph 55 Comparison of surplus 2 (actual and rectified) in France Graph 56 Comparison of surplus 1 (actual and rectified) in Italy Graph 57 Comparison of surplus 2 (actual and rectified) in Italy Graph 58 Comparison of surplus 1 (actual and rectified) in Spain Graph 59 Comparison of surplus 2 (actual and rectified) in Spain Graph 60 Evolution of the area grubbed with premium in France Graph 61 Share of the main vine grape variety in total area grubbed with premium ( ) in France Graph 62 Evolution of price and area for table wine in France Graph 63 Evolution of price and area for table wine in France Region Aquitaine Graph 64 Evolution of price and area for table wine in France Region Corse Graph 65 Evolution of price and area for table wine in France Region Languedoc Roussillon 192 Graph 66 Evolution of price and area for table wine in France Region Midi-Pyrénnées Graph 67 Evolution of price and area for table wine in France Région Côte d Azur Graph 68 Evolution of price and area for table wine in France Region Rhône Alpes Graph 69 Evolution of price and area for table wine in France Region Pays de la Loire Graph 70 Evolution of price and area for quality wine psr in France AOC Bordeaux Graph 71 Evolution of price and area for quality wine psr in France AOC MEDOC Graph 72 Evolution of price and area for quality wine psr in France AOC Haut Médoc Graph 73 Evolution of price and area for quality wine psr in France AOC Saint Emilion Graph 74 Evolution of price and area for quality wine psr in France AOC Entre deux mers Graph 75 Evolution of price and area for quality wine psr in France AOC Corbières Graph 76 Wine production and distillation in Italy Graph 77 Different wine distillation measures in Italy Graph 78 Wine production and distillation in Puglia Graph 79 Distillation and prices of red table wine in Puglia Graph 80 Wine production and distillation in Sicily Graph 81 Distillation and prices of white table wine in Sicily Graph 82 Wine production and distillation in France Graph 83 Different wine distillation measures in France Graph 84 wine production and distillation in Languedoc-Roussillon Graph 85 Transaction volumes, distillation and prices of table and regional wine in Languedoc- Roussillon Graph 86 Wine production and distillation in Spain Graph 87 Different wine distillation measures in Spain Graph 88 Wine production and distillation in Portugal Graph 89 Different wine distillation measures in Portugal Internal Page 15 / 479

16 Graph 90 Wine production and distillation in Greece Graph 91 Importance of different wine distillation measures in Greece Graph 92 Wine production and distillation in Germany Graph 93 Importance of different wine distillation measures in Germany Graph 94 Wine production and distillation in Austria Graph 95 Italian table wine prices in relation to the EU price system Graph 96 French table wine prices in relation to the EU price system Graph 97 Spanish table wine prices in relation to the EU price system Graph 98 Wine distillation in Italy and related EU expenditures Graph 99 Wine distillation in France and related EU expenditures Graph 100 Wine distillation in Spain and related EU expenditures Graph 101 Wine distillation in Portugal and related EU expenditures Graph 102 Wine distillation in Greece and related EU expenditures Graph 103 Wine distillation in Germany and related EU expenditures Graph 104 Reported by-product distillation (marc, lees and wine) in EU Graph 105 ratio of alcohol resulting from by-product distillation / total distillation in EU Graph 106 Quantities of table wine under private storage contracts (average 85/86 02/03) Graph 107 Quantities of table wine under private storage contracts (average 85/86 87/88) Graph 108 Quantities of table wine under private storage contracts (average 88/89 99/00) Graph 109 Quantities of table wine under private storage contracts (average 94/95 98/99) Graph 110 Quantities of table wine under private storage contracts (average 00/01 02/03) Graph 111 Distribution of aid for private storage per product at EU level Graph 112 Quantities of grape must under private storage contracts (average 85/86-02/03) Graph 113 Quantities of concentrated grape must and rectified concentrated grape must under private storage contracts (average 85/86 02/03) Graph 114 Quantities of grape must under private storage contracts (average 85/86 87/88) Graph 115 Quantities of concentrated grape must and rectified concentrated grape must under private storage contracts (average 85/86 87/88) Graph 116 Quantities of grape must under private storage contracts (average 88/89-99/00) Graph 117 Quantities of concentrated grape must and rectified concentrated grape must under private storage contracts (average 88/89 99/00) Graph 118 Quantities of grape must under private storage contracts (average 94/95-98/99) Graph 119 Quantities of concentrated grape must and rectified concentrated grape must under private storage contracts (average 94/95 98/99) Graph 120 Quantities of grape must under private storage contracts (average 00/01-02/03) Graph 121 Quantities of concentrated grape must and rectified concentrated grape must under private storage contracts (average 00/01-02/03) Graph 122 Domestic availability, production, stock and aid quantity in Italy Graph 123 Distribution of aid for private storage per product in Italy Graph 124 Domestic availability, production, stock and aid in quantity in Spain Graph 125 Distribution of aid for private storage per product in Spain Graph 126 Domestic availability, production, stock and aid in quantity in France Graph 127 Distribution of aid for private storage per product in France Graph 128 Domestic availability, production, stock and aid in quantity in Portugal Graph 129 Distribution of aid for storage per product in Portugal Graph 130 Quantities of table wine under private storage contracts. Average 1992/ / Graph 131 Percentage of «Q.b.A. mit Prädikat in relation to the global yields per hectare in Germany Internal Page 16 / 479

17 Graph 132 Use of CM and RCM in Italy Graph 133 Use of CM and RCM in Portugal Graph 134 Use of CM and RCM in Greece Graph 135 Use of CM and RCM in Spain Graph 136 Use of CM and RCM in Sicily Graph 137 The market for CM and RCM in France Graph 138 Use of CM and RCM in France Graph 139 Use of CM and RCM in Germany Graph 140 Use of CM and RCM in the EU Graph 141 Must processed for CM and RCM used for enrichment in the EU Graph 142 Quantity of sucrose replaced by the use of CM and RCM for enrichment in the EU.326 Graph 143 Percentage of total usable grape must production processed to CM and RCM that were used for enrichment in the EU ( 15) Graph 144 Agricultural producer price indices Graph 145 Volume of exported wines (CN code 2204) from EU to main third countries, Graph 146 Average prices of exported wines (CN code 2204) from EU to main third countries, Graph 147 Volume of imported wines (CN code 2204) to EU from main third countries, Graph 148 Average prices of imported wines (CN code 2204) to EU from main third countries, Graph 149Total exports Value (in mio Ecu) of Wine (CN 2204) from main EU producing Member States to third countries and to other EU Member States Graph 150 Total exports Quantity (in 000 HL) of Wine (CN 2204) from main EU producing Member States to third countries and to other EU Member States Graph 151 Total imports Value (in mio Ecu) of Wine (CN 2204) to main EU consuming Member States from third countries and other EU Member States Graph 152 Total imports Quantity (in 000 HL) of Wine (CN 2204) to main EU consuming Member States from third countries and other EU Member States Graph 153 Trade balance quantity (in 000 HL) of imports and exports for wine (CN 2204) Graph 154 Trade balance Value (in mio Ecu) of imports and exports for wine (CN 2204) Graph 155 Volume of imports from third countries in total volume of EU wine market supply and consumption Graph 156 Sparkling wine (CN Code ), volume of exports from FR, IT, ES, DE, Other EU countries to USA, Canada, Japan Graph 157 Sparkling wine (CN Code ), average prices of exported wines from total EU and from FR, IT, ES, DE to USA, Canada, Japan Graph 158 Bottled wine (CN Code ), volume of exports from FR, IT, ES, DE, Other EU Countries to USA, Canada, Japan Graph 159 Bottled wine (CN Code ), average prices of exported wines from total EU and from FR, IT, ES, DE to USA, Canada, Japan Graph 160 Bulk wine (CN Code ), volume of exports from FR, IT, ES, DE, Other EU Countries to USA, Canada, Japan Graph 161 Bulk wine (CN Code ), average prices of exported wines from total EU and from FR, IT, ES, DE to USA, Canada, Japan Graph 162 Other grape must (CN Code ), volume of exports from FR, IT, ES, DE, Other EU Countries to USA, Canada, Japan Graph 163 Other grape must (CN Code ), average prices of exported wines from total EU and from FR, IT, ES, DE to USA, Canada, Japan Graph 164 Sparkling wine (CN Code ), volume of imports from USA, AUS, CHI to UK, DE, NL, Other EU countries Internal Page 17 / 479

18 Graph 165 Sparkling wine (CN Code ), average prices of imported wines from USA, AUS, CHI to UK, DE, NL, Other EU countries Graph 166 Bottled wine (CN Code ), volume of imports from USA, AUS, CHI to UK, DE, NL, Other EU countries Graph 167 Bottled wine (CN Code ), average prices of imported wines from USA, AUS, CHI to UK, DE, NL, Other EU countries Graph 168 Bulk wine (CN Code ), volume of imports from USA, AUS, CHI to UK, DE, NL, Other EU countries Graph 169 Bulk wine (CN Code ), average prices of imported wines from USA, AUS, CHI to UK, DE, NL, Other EU countries Graph 170 Other grape must (CN Code ), volume of imports from USA, AUS, CHI to UK, DE, NL, Other EU countries Graph 171 Other grape must (CN Code ), average prices of imported wines from USA, AUS, CHI to UK, DE, NL, Other EU countries Graph 172 DE, volume and price of table wines imported from FR, IT, ES, CH, AU, (bottled, white, v 13%) Graph 173 DE, volume and prices of table wines imported from FR, IT, ES, CH, AU, (bottled, red, v 13%) Graph 174 DE, volume and prices of table wines imported from FR, IT, ES, CH, AU, (bottled, white, 13%< v 15%) Graph 175 DE, volume and prices of table wines imported from FR, IT, ES, CH, AU, (bottled, red, 13%< v 15%) Graph 176 DE, volume and prices of table wines imported from FR, IT, ES, CH, AU, (bulk, white, v 13%) Graph 177 DE, volume and prices of table wines imported from FR, IT, ES, CH, AU, (bulk, red, v 13%) Graph 178 DE, volume and prices of table wines imported from FR, IT, ES, CH, AU, (bulk, white, 13%< v 15%) Graph 179 DE, volume and prices of table wines imported from FR, IT, ES, CH, AU, (bulk, red, 13% < v 15%) Graph 180 UK, volume and prices of table wines imported from FR, IT, ES, CH, AU, (bottled, white, v 13%) Graph 181 UK, volume and prices of table wines imported from FR, IT, ES, CH, AU, (bottled, red, v 13%) Graph 182 UK, volume and prices of table wines imported from FR, IT, ES, CH, AU, (bottled, white, 13%< v 15%) Graph 183 UK, volume and prices of table wines imported from FR, IT, ES, CH, AU, (bottled, red, 13%< v 15%) Graph 184 UK, volume and prices of table wines imported from FR, IT, ES, CH, AU, (bulk, white, v 13%) Graph 185UK, volume and prices of table wines imported from FR, IT, ES, CH, AU, (bulk, red, v 13%) Graph 186 UK, volume and prices of table wines imported from FR, IT, ES, CH, AU, (bulk, white, 13%< v 15%) Graph 187 UK, volume and prices of table wines imported from from FR, IT, ES, CH, AU, (bulk, red, 13%< v 15%) Graph 188 Conventional and autonomous rates of duty, , sparkling wine, liqueur wines of v > 22% Graph 189 Conventional and autonomous rates of duty, , wine bottled or in bulk 9% < v 15% Graph 190 Conventional and autonomous rates of duty, , bottled liqueur wines of 15% < v 18% Internal Page 18 / 479

19 Graph 191 Conventional and autonomous rates of duty, , bulk liqueur wines of 15% < v 18% Graph 192 Fixing of Export Refunds for white table wines ( ) Graph 193 Fixing of Export Refunds for red table wines and liqueur non qwpsr wines ( ) Graph 194 Evolution of export refunds for vine growing sector per wine type Graph 195 Evolution of export refunds for vine growing sector per destination Graph 196 Evolution of export refunds for vine growing sector per exporting country Graph 197 Evolution of the vineyard area in France ( ) Graph 198 Evolution of wine consumption in Spain ( ) Graph 199 Evolution of the table wine in Italy ( ) Graph 200 FNVA/AWU at EU level for types of wine producers and all farms Graph 201 FNVA/AWU for quality wine producers at country level Graph 202 FNVA/AWU for non-quality wine producers at country level Graph 203 FNVA/AWU for mixed quality/non-quality wine producers at country level Graph 204 Germany Graph 205 Spain Graph 206 France Graph 207 Italy Graph 208: Portugal Graph 209 Make-up of FNVA/AWU for mixed quality/non-quality wine producers at EU level 449 Graph 210 FNVA/AWU (indexed) for quality wine producers in farm size categories at EU level Graph 211 FNVA/AWU (indexed) for non-quality wine producers in farm size categories at EU level Graph 212 Indexed FNVA/AWU for selected regions Graph 213 FNVA/AWU for comparable sectors Graph 214 Germany Graph 215 France Graph 216 Italy Graph 217 Spain Graph 218 Portugal Graph 219 Average farm size at EU level Graph 220 AWU for quality wine producers at country level Graph 221 AWU for non-quality wine producers at country level Graph 222 AWU for mixed quality/non-quality wine producers at country level Graph 223 Number of wine specialists at country level Graph 224 Impact of CMO measures Graph 225 Wine production at EU level Graph 226 Wine production at country level Graph 227 Quality wine production at country level Graph 228 Table wine production at country level Graph 229 Total wine production Graph 230 Total wine production Graph 231 Quality wine production Graph 232 Quality wine production Graph 233 Table wine production Graph 234 Table wine production Graph 235 Output and input per hectare for specialist vineyards at EU level Internal Page 19 / 479

20 Graph 236 Output/Input at EU level Graph 237 Output/input at country level Graph 238 Indexed output/input at country level Graph 239 Impact of the CMO on processing and marketing systems Internal Page 20 / 479

21 2. Introduction The present document is the Annex to the Final Report. The structure of the annex follows the structure of the Final Report. 3. Annex to Chapter 2 (Overview of the wine market) 3.1. The wine market overview of key developments Graph 1 Development of the wine self sufficiency (% in terms of volume) % World EU 15 NWWG Source: Anderson, K. and D. Norman (2001): Global Wine Production, Consumption and Trade 1961 to A Statistical Compendium, CIES, Adelaide University, Australia, ( Internal Page 21 / 479

22 Graph 2 Share of world wine export volume (in %) % EU 15 NWWG New World Wine Group (NWWG) = New Zealand, Australia, South Africa, Argentina, Chile, USA. Source: OIV, Paris, information by , May/June 2004 Graph 3 Wine market balance EU-15 (in 1000 hl) hl / / /98 Stock changes Imports Exports Exchanges intra-eu Domestic uses: - transformation - human consumption Usable production 1998/ / /01 Source: DG Agri, (rapports annuels) Internal Page 22 / 479