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Evaluation of CAP measures applied to the wine sector

A research has been published that analyses the effects of the measures included in the CMO wine reforms of 2008 and examines the period 2001 – 2011 for 18 EU Member States

The Dg Agri presented the report “Evaluation of CAP measures applied to the wine sector ”, developed by the Cogea consulting society in October 2012. The research analyses the effects of the measures included in the CMO wine reforms of 2008 and examines the period 2001 – 2011 for 18 Member States.
The main conclusions of the report are the following:
- At the EU level, the reform implementation has caused a decrease of the productive potential compared to the pre-reform period, but the volume on the market has not lowered in a proportional way. The surface dedicated to viticulture has decreased 4,6%, as consequences of the implementation of the obliteration regime.
- The support measures have had positive effects on the farmers’ income, for what concerns the single payment scheme and the crisis distillation, less positive are the effects in relation to green harvest. The grubbing arrangement has effectively compensated the income loss due to the suspension of production when the vines were replaced by others permanent coltures, but not in other cases.
- The variation in the enterprises’ yield seem to be connected only minimally to the implementation of the reform. However, a positive role can be recognised to the reconstruction/reconversion of the vineyards and to the promotion in third countries markets
- The Pdo/Pgi system established with the reform favoured the Pgi wine production in the majority of Member States, even if the harmonisation with the new normative created some difficulties.
In conclusion, the research suggests to:
- Reanalyse the criteria that regulate promotion in third countries markets, in order to facilitate the use of the tool also for small companies;
- Render more attractive the use of loans, that have not been activated by none of the Member States;
- Reanalyse the norms for the enrichment, that could generate a distortion of the competitiveness between enterprises that can use sucrose and enterprises in which it is prohibited;
- Consider that the closure of distilleries can provoke environmental damages in areas where the alternative products are not easy to find in the short term or are not economically sustainable;
- Develop a new segmentation of the Pdo/Pgi wines, more in harmony with the perception that consumers have about the term “quality”;
- Control that the payment regime does not determine a distortion of the competitiveness;
- Improve the monitoring, from Member States, of the producers organisation and interprofessional organisations
- Improve the procedures for the management of the dotation, in order to guarantee higher flexibility of the competent authority.

by S. C.
04 february 2013, World News > Europe

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