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
životne sredine
EU WINE SECTOR– REFORMS AND LEGISLATION
Jasna Čačić, PhD.,MBA
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
životne sredine
CONTENT
� Introduction� Wine and Common Agriculture Policy
(CAP)� Wine Common Market Organisation
(CMO wine)� Reforms – reasons and objectives� Conclusions
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
životne sredine
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
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
životne sredine
Wine-growing areas in the world
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
životne sredine
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
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
životne sredine
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
životne sredine
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
životne sredine
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
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
životne sredine
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
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
životne sredine
Wine market situation in the 1980s
Years of crisis for the wine sector
Overproduction
Continuous decline in demand
Exploding expenditure
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
životne sredine
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
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
životne sredine
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
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
životne sredine
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
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
životne sredine
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
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
životne sredine
Next steps – new reforms:
Reform of the Common
Agriculture Policy (CAP)
Reform of the Wine Common
Market Organisation (CMO)
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
životne sredine
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
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
životne sredine
Reform of the wine sector
in two phases
Phase I 2008
Phase II2009
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
životne sredine
• 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)
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
životne sredine
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
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
životne sredine
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
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
životne sredine
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
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
životne sredine
• 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
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
životne sredine
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
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
životne sredine
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
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
životne sredine
CONCLUSIONS
• Simplification of the rules – key requirement of each reform
• Reform implemented on the EU institutional level• Questionable implementation in Member States
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
životne sredine
THAN YOU FOR YOUR ATTENTION!