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Copa Cogeca, proposals to support the wine sector

Luca Rigotti: "The situation calls for action at all levels: local, national and European"

What measures can the EU take to support its wine sector? The answer is contained in a series of "concrete proposals" that Luca Rigotti, grape producer (he heads the group Mezzacorona) and chairman of the working group on wine of the Copa-Cogeca, together with some colleagues, intends to present proposals already submitted at the first meeting of the 'High Level Group' to the European Commission at the beginning of this parliamentary term. "I hope that, in the midst of all the discussions on wine in Brussels -explains Rigotti in a statement released by the Copa Cogeca- our proposals will be heard, because the current situation on the ground urgently requires decisive action".

The European wine sector is going through a particularly difficult period, says Rigotti. ' As is often the case in agriculture, there is no single cause but rather a combination of factors. Overall consumption in Europe is declining, consumer preferences are changing rapidly and growing the vine is becoming more complex due to climate change". At the same time, "the agronomic tools available to winegrowers are often inadequate, especially when aggravated by commercial and regulatory uncertainties: despite these challenges, the sector remains a leader in agricultural exports, generating 130 billion Euro per year (0,8% of European GDP) and employing 2.9 million people, keeping many renowned territories alive throughout the EU".

"The situation in this sector calls for action at all levels: local, national and European -says Rigotti-. As chairman of the Copa and Cogeca working group on wine, I would like to focus this article on the responses at European level. For wine-growers, the European response now depends on the recent creation by the Commission of the 'High Level Group on the future of the EU wine sector, which held its first meeting on 11 September".

"As an emergency response to the crisis affecting many wine regions, discussions have focused on the possibility of grubbing up vineyards -adds the press release-. I believe that grubbing up is an extreme and temporary measure which can be useful in specific local contexts: However, long-term stability and growth should be achieved through mechanisms that allow us to manage the market changes we are experiencing. In this context, I would favour a 'temporary' uprooting mechanism rather than a permanent solution. I know too well that nobody likes to erase years of work, rather it makes more sense to give the time needed to recover from a difficult moment".

One measure that would be of great benefit to winegrowers is the adaptation of the replanting authorisation system. "Extending the validity of replanting permits from 3 to 8 years, says the expert, would allow a longer resting period for the soil (improving the ecological benefits of the vineyard) and would give the winegrowers time to assess market changes and replant the right varieties at the right time. We have to consider that these authorisations are already in the portfolio of producers and would therefore not affect national counting". 

"Staying on the longer-term levers of European action -stresses the note by Rigotti-, there is a field of action which has been a real 'European success' so far and which I think should be mentioned more often: the promotion and policy of GI. Today we have over 1.600 wine denominations protected at European level. In the past, EU promotional policies have played a crucial role in helping us to establish ourselves in new markets, and there is still much work to be done in this area. For example, the wine cooperative I chair exports 85% of its production. Wine serves as a gateway for European products to many international markets and the EU must continue to support these promotional programmes. Similarly, the extension of real promotion campaigns to the internal market could support the dynamism of the sector".

"As regards adaptation and mitigation of climate change -says the pres release-, the sector has already made significant progress in reducing impact over the years. However, the EU needs to respond more quickly and simplify the implementation of crisis mechanisms (such as distillation and private storage) at national level in order to better respond to crisis situations. Greater flexibility in the management of the national sectoral budget, in particular by allowing the carry-over of unspent funds to the budget of the following year, would ensure the sector more stability and planning certainty".

We must also focus on restoring the sector’s competitiveness. "After the publication of the Report Draghi -confirms Rigotti in the press release- awareness has grown, especially in the industrial sector, but also agriculture has wide scope for improvement. Wine is an innovative sector, but to make innovation thrive we need to catch up. Rising interest rates and inflation are a major challenge for operators, and addressing these obstacles will be crucial to finding new market opportunities".

"Finally, our sector has a dynamic network -says Rigotti-. Our cooperative wineries are a valuable tool to strengthen the role of producers in the value chain, and this should not be overlooked by EU politicians. During the European election campaign, agriculture was at the centre of many debates, but the role of cooperatives as a key instrument was often absent from the dialogues. This gap has been noted since then and I hope that more attention will be given to developing their potential".

"As regards cooperatives -the note explains- it is proposed to consider their total turnover in relation to the number of members (for example for investment measures) in calculating public support. In other words, cooperatives should be classified as SMEs, since they often include hundreds, if not thousands, of micro and small producers. It makes no sense to penalise small producers because of the business model they are part of".

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EFA News - European Food Agency
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