Navigation Links
EU Aims to Shake Up Wine Industry With Root-and-branch Reform

The European Commission on Wednesday proposed uprooting excess vineyards and launching an overseas marketing blitz under a new wine industry strategy aimed at soaking up glut and countering New World producers.

Farm Commissioner Mariann Fischer-Boel warned that the European Union's annual wine budget of 1.3 billion euros (1.8 billion dollars) was currently spent in "a very inefficient way" despite huge challenges facing the sector.

"We are now actually losing market share to dynamic producers in other parts of the world, consumption is falling and imports are increasing by about 10 percent," Fischer-Boel told journalists.

With 500 million euros currently spent each year getting rid of unsold wine, her proposed solution focused on abolishing measures used to dispose of excess wine and paying farmers to uproot uncompetitive vineyards.

"The proposals aim first of all to boost the competitiveness of the European wine producers, try to win back markets, drain the infamous wine lakes and of course make things more simple," she said.

EU attempts to turn around souring wine market

Although Europe remains by far the biggest wine producer and exporter, it faces growing competition from so-called New World competitors, notably Australia, the US state of California, Chile and South Africa.

In Europe, wine heavyweights such as France, Italy and Spain are increasingly feeling the squeeze as consumption falls at home and they lose market share to New World imports in traditionally large markets like Britain and Germany.

Under the root-and-branch reform, the distillation of excess wine, aid for private storage and export refunds would all be abolished while incentives would be increased to encourage farmers to uproot a targeted 200,000 hectares (494,000 acres) under vines.

The Commission also wants a budget of 120 million euros per year, funded partially by the EU and partially by national sources, for a marketing campaign to gain market share abroad.

At the same time, the European Union's executive arm proposed loosening currently strict but "confusing" rules on bottle labelling to win back lost market share in Europe.

"I think we shoot ourselves in the foot with rules that are indeed illogical," Fischer-Boel said.

"For example, we propose for the first time that all EU wines would be allowed to indicate the vintage and the wine variety on the label," she added.

The reform, which still has to be backed by member states, won a mixed reaction from the wine sector, with farmers up in arms and traders pleased with the shake-up.

"The Commission's reform wants to introduce the New World's agro-industry model in the EU and do away with the age-old European model of traditional vineyards," said Jean-Louis Piton, an official with the Copa-Cogeca farmers association.

During its drafting, the reform fired up many farmers especially over the uprooting plans, causing the Commission to slash by half the number of hectares it targeted from 400,000 originally.

"I'm not naive, I realise that the wine sector is very emotional and that many will obviously have objections to my ideas but this should not distract us from the fact that a reform is crucial," Fischer-Boel said.

While farmers gave a cool reaction to the proposals, the CEEV wine trade association welcomed the reform.

"If we wish to remain world leader, we need a market-oriented (approach) allowing the companies and the European wines to be more competitive both in the internal market and in the external markets," said CEEV head Lamberto Vallarino Gancia.


Related medicine news :

1. Botulism Scare in Thailand Shakes US
2. Community Health Shake-up Spells Trouble for Nurses
3. Major Shake up needed in HIV Vaccine Research
4. Fury over Backing of Health Shake-up
5. Adding Credit To The Health Care Industry In India
6. Unregulated Fish Industry Harms Health Of Women
7. Tourism Industry Affected By Bird Flu
8. Bio-Functional Garments That Could Revolutionize Fashion Industry
9. Poultry Industry In India Suffers A Set Back
10. Health Industry On An Upward Swing In Germany
11. Poultry Industry Of Pakistan Stresses On Need Of Relief Package
Post Your Comments:

(Date:11/27/2015)... ... November 27, 2015 , ... Intellitec Solutions announced ... User Group (MSDSLUG). Recognized as Microsoft’s official group for end users of Dynamics ... software users, partners, industry experts and representatives. Intellitec Solutions’ membership status demonstrates their ...
(Date:11/27/2015)... ... 2015 , ... The men and women on this list ... the country. They have overseen financial turnarounds, shown commitment to their community through ... as a whole through their advocacy and professional efforts. , Becker's Hospital Review ...
(Date:11/26/2015)... ... November 26, 2015 , ... Inevitably when people think Thanksgiving, they also ... buy during the Black Friday and Cyber Monday massage chair sales to ... Internet high and low to find the best massage chair deals, they can see ...
(Date:11/26/2015)... ... 2015 , ... PRMA Plastic Surgery is updating their record books yet again ... free flap breast reconstruction surgery! , “What an accomplishment for the PRMA team, says ... and it’s an honor to have served all of these women.” , PRMA is ...
(Date:11/25/2015)... OAK BROOK, Ill. (PRWEB) , ... November 25, ... ... sometimes larger and potentially more aggressive than those found on mammography, according to ... cases MRI findings of additional cancers not seen on mammography may necessitate a ...
Breaking Medicine News(10 mins):
(Date:11/26/2015)... , Nov. 26, 2015 Research ... addition of the "2016 Future Horizons and ... (TDM) Market: Supplier Shares, Country Segment Forecasts, Competitive ... --> --> ... analysis of the Italian therapeutic drug monitoring market, ...
(Date:11/25/2015)...  Amgen (NASDAQ: AMGN ) today announced the ... the United States (U.S.) Food and ... to Humira ® (adalimumab). Amgen believes this submission ... FDA and represents Amgen,s first BLA submission using the ... M.D., executive vice president of Research and Development at ...
(Date:11/25/2015)... MINNEAPOLIS , Nov. 25, 2015  ARKRAY ... care products, continues to provide evidence demonstrating the accuracy ... the World Congress on Insulin Resistance, Diabetes and Cardiovascular ... showed that both the Company,s GLUCOCARD ® 01 ... met high accuracy requirements. The ability to accurately measure ...
Breaking Medicine Technology: