Answer to question by João Ferreira (GUE/NGL) to the Commission on ‘Vinho verde'

20 May 2010

‘Vinho verde', the wine produced in northern Portugal in the ‘Entre Douro e Minho' region, is a quality product which plays an important part in the region's social and economic fabric.

The Union of Vinho Verde Cooperatives brings together seven wine cooperatives in the region representing some 4 000 producers, and is responsible for producing 7 million litres of wine per annum.

Despite the importance of their activity in regional terms, producers of ‘vinho verde' face problems over profitability and the level of support for the planting and conversion of vineyards. These problems are the result of high production costs — arising inter alia from natural factors which give rise to higher costs by comparison with other regions, e.g. for the adaptation of land — and of the low prices practised at the initial point of sales, owing to, among other causes, pressure from the big distribution networks and their preponderance in marketing terms. The difficulties could be worsened by the dismantling of the COMfor the sector and the liberalisation of planting rights due to come into effect in 2013.

In view of the above, can the Commission state:

1. what measures have been or will be taken in support of the region's small and medium-sized producers and the wine cooperatives, with a view to promoting sustainable activity and equitable income levels for producers;

2. what specific measures could be taken to support producers and wine cooperatives in cases of conversion of vineyards, taking account of lower production levels in the years subsequent to such conversion?

E-1989/10EN Answer given by Mr Cioloş on behalf of the Commission

In 2008, the Council adopted a new common organisation of the market in wine. This wine reform is focused on improving the sector's competitiveness and market orientation, maintaining high quality standards, promote sustainable activity and taking into account consumers' expectations.

It foresees an allocation of national envelopes enabling producer Member States to finance the measures necessary for the modernisation of their own wine sector taking into account the different needs of each region. Each Member State has to use its envelope by means of support programme on the basis of a given menu of measures. Therefore, the producer Member States submitted in 2008 their support programmes to be financed by the EU, selecting their own measures to meet the needs of their national and regional particularities. Establishing detailed provisions on the implementation of the measures and their management is the competence of the Member States.

The National Programme for Portugal includes support for restructuring the vineyard and/or variety conversion, new support for promotion in third countries, by products/potable alcohol distillation and use of concentrated grape must. The budget for 2009-2013 amounts to EUR 274 million. A producer who wants to apply for funding has to contact the authorities in charge of the programme management.

The reform also aims to safeguard traditional and well-established quality policies and to simplify labelling rules, for the benefit of producers and consumers alike. The concept of EU quality wines is based on wines with Protected Geographical Indications (GIs) and those with Protected Designation of Origin. Well-established national quality policies are safeguarded.

Labelling is simpler and, for example, allows EU wines without GIs to indicate the variety and vintage on the label. Certain traditional terms and bottle shapes can continue to be protected, for example the "cantil" bottle used with Portuguese wines.

Furthermore, in the framework of rural development Council Regulation (EC) No 1698/2005 of 20 September 2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD)[1] provides for a number of measures which can be used to support "Vinho Verde" producers: modernisation of agricultural holdings (Article 26), adding value to agricultural products (Article 28), participation of farmers in food quality schemes (Article 32), natural handicap payments in mountain areas and payments in other areas with handicaps (Article 37), agri-environment payments (Article 39), diversification into non-agricultural activities (Article 53) and support for business creation and development (Article 54). These support measures are available to, among others, the "Vinho Verde" producers under the Rural Development Programmes of Mainland Portugal (PRODER) for the programming period 2007-2013.

Moreover, the professional organizations from the "Vinho Verde" region may also take part in horizontal promotional actions according to Council Regulation (EC) No 3/2008[2] and Commission Regulation (EC) No 501/2008[3]. In fact some professional organisations are already taking part in various co-financed programmes, of which the last one was approved in November 2009.

[1] OJ L 277, 21.10.2005

[1] OJ L 3, 5.1.2008

[1] OJ L 147, 6.6.2008