eu wine sector–reforms and...

Project funded by the European Union

Projekat finansira Evropska unija

Project implemented by

Projekat sprovode

Republic of SerbiaMinistry of Agriculture and Environmental Protection

Republika SrbijaMinistarstvo poljoprivrede i zaštite

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EU WINE SECTOR– REFORMS AND LEGISLATION

Jasna Čačić, PhD.,MBA




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CONTENT

� Introduction� Wine and Common Agriculture Policy

(CAP)� Wine Common Market Organisation

(CMO wine)� Reforms – reasons and objectives� Conclusions




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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




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Wine-growing areas in the world




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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




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Introduction of Common Wine Policy - 1970

Introduction of Common Wine Policy - 1970

Reg.816/70 – basic provisions for CMO wine

implementation

Reg.816/70 – basic provisions for CMO wine

implementation

Reg. 817/70 –provisions aimed at

quality wines

Reg. 817/70 –provisions aimed at

quality wines

Reg. 1338/70 -classificatin of vine

varieties

Reg. 1338/70 -classificatin of vine

varieties

Reg. 2005/70 –categorisation of

vines for each region

Reg. 2005/70 –categorisation of

vines for each region




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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




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Wine market situation in the 1980s

Years of crisis for the wine sector

Overproduction

Continuous decline in demand

Exploding expenditure




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Reg. 822/87 and Reg. 823/87

Combination of economic and

qualitative rules

To stabilise markets and insure fair living

standard for producers

Reg.1493/1999 –to keep

competitiveness and balance

between supply and demand




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Objectives of the 1999 reform

� Achieving better balance between supply anddemand on the Community market

� Bringing production into line with a marketdemanding higher quality products

� Competitiveness of the sector in the long term




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Reg. 1493/1999

Reg. 1227/2000 –production potentials

Reg. 1623/2000 –market

mechanisms

Reg. 1622/2000 –oenological

practices

Reg. 753/2002 –labelling

Reg. 1607/2000 – quality wines

Reg. 883/2001 –trade with third

countries

Reg. 884/2001 –accompanying

documents and registers

Reg. 2729/2000 –controls

Reg. 1282/2001 - declarations




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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




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Next steps – new reforms:

Reform of the Common

Agriculture Policy (CAP)

Reform of the Wine Common

Market Organisation (CMO)




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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




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Reform of the wine sector

in two phases

Phase I 2008

Phase II2009




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• Single common market organisation• Single common market organisation2007Reg. 1234/2007

• 555/2008 – support programs,

documents

• 555/2008 – support programs, trade, production potential, controls• 436/2008 - vineyard register,

declarations, accompanying documents

2008Phase I – Reg. 479/2008

• 606/2009 – categories of vine • 606/2009 – categories of vine products, oenological practices• 607/2009 – PDO, PGI, traditional

terms, labelling

2009.Phase II – Reg. 491/2009

(amending 1234/2007)




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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




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MAIN

CHANGES IN

THE NEW CMO

National

financial

envelops

Rural

development

and

environmental

protection in

wine-

producing area

Phasing-out of

distillation

schemes and

eliminating

subsidies for

distillation into

alcohol




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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




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• New regulations• New regulationsCAP Reform after 2013

• Rural development• Rural developmentReg. 1305/2013

• Horizontal issues• Horizontal issuesReg. 1306/2013

• Direct payment• Direct paymentReg. 1307/2013

• Market measures, repealed Reg. • Market measures, repealed Reg. 1234/2007Reg. 1308/2013




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Reg. 1308/2013

Support programs in wine sector

Oenological

practices and

methods of

analysis

PDO , PGI,

traditional term,

labelling

Trade with third

countries

Categories of grape

vine products

Wine-growing

zones




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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




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CONCLUSIONS

• Simplification of the rules – key requirement of each reform

• Reform implemented on the EU institutional level• Questionable implementation in Member States




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THAN YOU FOR YOUR ATTENTION!

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eu wine sector–reforms and...

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