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Technical Assistance for Development of a Strategy for Alignment with

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1 Technical Assistance for Development of a Strategy for Alignment with
Common Market Organisation (CMO) Requirements TR2014/AG/10-A1-01/001 This Project is co-financed by the European Union and the Republic of Turkey OENOLOGICAL PRACTICES, NATIONAL SUPPORT PROGRAMMES IN THE WINE SECTOR- ELIGIBLE ACTIONS, COSTS AND OPERATIONS Dariusz Goszczyński Expert on training in the area of CMO Ankara, 3 May, 2018

2 SUPPORT PROGRAMS IN THE WINE SECTOR
The rules governing the attribution of Union funds to Member States Use of funds by Member States through five-year national support programmes Finance specific support measures to assist the wine sector

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Compatibility and consistency Compatible with Union law and shall be consistent with the activities, policies and priorities of the Union. Member States shall be responsible for support programmes Internally consistent Drawn up and implemented in an objective manner, taking into account the economic situation of the producers concerned and the need to avoid unjustified unequal treatment of producers

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No support shall be granted for: Research projects and measures Measures contained in Member States' rural development programmes

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Submission of support programmes Each producer Member State - submits to the Commission a draft five- year support programme containing at least one of the eligible measures The support measures drawn up at the geographical level The Member State shall consult the competent authorities and organisations at the appropriate territorial level on the draft support programme before submitting it to the Commission Take into account regional particularities. Applicable three months after the submission of the draft support programme to the Commission

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Support programme does not comply with the rules Information to the Member State Member State shall submit a revised draft support programme The revised support programme shall become applicable two months after the submission of the draft revised support programme

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Content of support programmes Support programmes shall include at least the following elements: a detailed description of the measures the results of consultations held an appraisal showing the expected technical, economic, environmental and social impact a schedule for implementing the measures

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Content of support programmes Support programmes shall include at least the following elements: General financing table Criteria and quantitative indicators to be used for monitoring and evaluation Designation of competent authorities and bodies responsible for implementing the support programme

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Eligible measures Support programmes may contain only one or more of the following measures: Promotion Restructuring and conversion of vineyards Green harvesting,

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Eligible measures Support programmes may contain only one or more of the following measures: Mutual funds Harvest insurance Investments Innovation in the wine sector By-product distillation

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General rules concerning support programmes Funds shall be allocated within the budgetary limits Granted for eligible expenditure Member States shall not contribute to the costs of measures financed by the Union under the support programmes

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Promotion Information or promotion measures concerning Union wines: Member States - with a view to informing consumers about the responsible consumption of wine and about the Union systems covering designations of origin and geographical indications Third countries - with a view to improving their competitiveness.

13 SUPPORT PROGRAMS IN THE WINE SECTOR
Promotion Third countries - wines with a protected designation of origin or a protected geographical indication or wines with an indication of the wine grape variety and shall consist only of one or more of the following: public relations, promotion or advertisement measures, in particular highlighting the high standards of the Union products, especially in terms of quality, food safety or the environment participation at events, fairs or exhibitions of international importance; information campaigns, in particular on the Union systems covering designations of origin, geographical indications and organic production

14 SUPPORT PROGRAMS IN THE WINE SECTOR
Promotion Third countries - wines with a protected designation of origin or a protected geographical indication or wines with an indication of the wine grape variety and shall consist only of one or more of the following: studies of new markets, necessary for the expansion of market outlets studies to evaluate the results of the information and promotion measures The Union contribution shall not exceed 50 % of the eligible expenditure

15 SUPPORT PROGRAMS IN THE WINE SECTOR
Restructuring and conversion of vineyards Objective - increase the competitiveness of wine producers Member States - submit the inventory of their production potential Contribution to improving sustainable production systems and the environmental footprint of the wine sector Cover one or more of the following activities: varietal conversion, including by means of grafting-on relocation of vineyards

16 SUPPORT PROGRAMS IN THE WINE SECTOR
Restructuring and conversion of vineyards Cover one or more of the following activities: replanting of vineyards where that is necessary - grubbing up improvements to vineyard management techniques The normal renewal of vineyards, which means the replanting of the same parcel of land with the same wine grape variety according to the same system of vine cultivation, when vines have come to the end of their natural life, shall not be supported Member States may lay down further specifications, especially as regards the age of the vineyards replaced.

17 SUPPORT PROGRAMS IN THE WINE SECTOR
Restructuring and conversion of vineyards Support for the restructuring and conversion of vineyards may only take the following forms: compensation to producers for the loss of revenue due to the implementation of the measure contribution to the costs of restructuring and conversion

18 SUPPORT PROGRAMS IN THE WINE SECTOR
Restructuring and conversion of vineyards Compensation to producers for the loss of revenue may cover up to 100 % of the relevant loss and take one of the following forms: the permission for old and new vines to coexist until the end of the transitional regime for a maximum period which shall not exceed three years financial compensation The Union contribution to the actual costs of the restructuring and conversion of vineyards shall not exceed 50 %. In less developed regions, the Union contribution to the costs of restructuring and conversion shall not exceed 75 %.

19 SUPPORT PROGRAMS IN THE WINE SECTOR
Green harvesting "green harvesting" means the total destruction or removal of grape bunches while still in their immature stage, thereby reducing the yield of the relevant area to zero. Leaving commercial grapes on the plants at the end of the normal production cycle (non-harvesting) shall not be considered to be green harvesting Support for green harvesting shall contribute to restoring the balance of supply and demand in the Union wine market in order to prevent market crises

20 SUPPORT PROGRAMS IN THE WINE SECTOR
Green harvesting Compensation in the form of a flat rate payment per hectare to be determined by the Member State concerned The payment shall not exceed 50 % of the sum of the direct costs of the destruction or removal of grape bunches and the loss of revenue related to such destruction or removal

21 SUPPORT PROGRAMS IN THE WINE SECTOR
Mutual funds Support for the setting up of mutual funds shall provide assistance to producers seeking to insure themselves against market fluctuations Support for the setting up of mutual funds may be granted in the form of temporary and degressive aid to cover the administrative costs of the funds

22 SUPPORT PROGRAMS IN THE WINE SECTOR
Harvest insurance Contribute to safeguarding producers' incomes where there are losses as a consequence of natural disasters, adverse climatic events, diseases or pest infestations. Insurance contracts shall require that beneficiaries undertake necessary risk prevention measures Support for harvest insurance shall not distort competition in the insurance market

23 SUPPORT PROGRAMS IN THE WINE SECTOR
Harvest insurance Granted in the form of a Union financial contribution which shall not exceed: 80 % of the cost of the insurance premiums paid for by producers for insurance against losses resulting from adverse climatic events which can be assimilated to natural disasters; 50 % of the cost of the insurance premiums paid for by producers for insurance: against losses and against other losses caused by adverse climatic events against losses caused by animals, plant diseases or pest infestations.

24 SUPPORT PROGRAMS IN THE WINE SECTOR
Investments Intended to improve the overall performance of the enterprise and its adaptation to market demands, as well as to increase its competitiveness, Concern the production or marketing of grapevine products, including with a view to improving energy savings, global energy efficiency and sustainable processes.

25 SUPPORT PROGRAMS IN THE WINE SECTOR
Investments Maximum rate: apply only to micro, small and medium-sized enterprises may, in addition, apply to all enterprises for the outermost regions Enterprises with fewer than 750 employees, or with a turnover of less than EUR 200 million, the maximum aid intensity shall be halved Support shall not be granted to enterprises in difficulty

26 SUPPORT PROGRAMS IN THE WINE SECTOR
Investments Union contribution: 50 % in less developed regions 40 % in regions other than less developed regions 75 % in the outermost regions 65 % in the smaller Aegean islands

27 SUPPORT PROGRAMS IN THE WINE SECTOR
Innovation in the wine sector Tangible or intangible investments aimed at development of new products, processes and technologies The support shall be intended to increase the marketability and competitiveness of Union grapevine products and may include an element of knowledge transfer. Union contribution as those set out for investments

28 SUPPORT PROGRAMS IN THE WINE SECTOR
By-product distillation Support may be granted for the voluntary or obligatory distillation of by- products of wine making The amount of aid shall be fixed per % volume and per hectolitre of alcohol produced. No aid shall be paid for the volume of alcohol contained in the by-products to be distilled which exceeds 10 % in relation to the volume of alcohol contained in the wine produced The aid shall be paid to distillers that process by-products of winemaking delivered for distillation into raw alcohol with an alcoholic strength of at least 92 % by volume The alcohol resulting from the supported distillation shall be used exclusively for industrial or energy purposes to avoid distortion of competition

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37 OENOLOGICAL PRACTICES
Only authorized oenological practices can be used in the production and conservation of the wine products in the Union. Authorized oenological practices shall only be used for the purposes of ensuring proper vinification, proper preservation or proper refinement of the product. When authorising oenological practices for wine the Commission shall take into account the oenological practices and methods of analyses recommended and published by the OIV, as well as the results of experimental use of as-yet unauthorised oenological practices. Also take into account the protection of human health and the possible risk of consumers being misled due to their well-established perception of the product and their corresponding expectations, having regard to the availability and feasibility of informational means to exclude such risks.

38 OENOLOGICAL PRACTICES
Member States may limit or prohibit the use of certain oenological practices and provide for more stringent rules for wines authorised under Union law produced in their territory with a view to reinforcing the preservation of the essential characteristics of wines with a protected designation of origin or a protected geographical indication and of sparkling wines and liqueur wines. Member States may also allow the experimental use of unauthorised oenological practices. Additional national provisions on products covered by a Union marketing standard may only adopt or maintain if those provisions comply with Union law, in particular the principle of free movement of goods.

39 OENOLOGICAL PRACTICES
Enrichment, acidification and de-acidification in certain wine-growing zones Enrichment limits Where climatic conditions have made it necessary in certain wine-growing zones of the Union, the Member States concerned may allow to supplement the natural alcoholic strength by volume of fresh grapes, grape must, grape must in fermentation, new wine still in fermentation and wine obtained from wine grape varieties: the variety concerned belongs to the species Vitis vinifera or comes from a cross between the species Vitis vinifera and other species of the genus Vitis; the variety is not one of the following: Noah, Othello, Isabelle, Jacquez, Clinton and Herbemont

40 OENOLOGICAL PRACTICES
Enrichment, acidification and de-acidification in certain wine-growing zones Enrichment processes The increase in natural alcoholic strength shall only be effected: in respect of fresh grapes, grape must in fermentation or new wine still in fermentation, by adding sucrose, concentrated grape must or rectified concentrated grape must; in respect of grape must, by adding sucrose, concentrated grape must or rectified concentrated grape must, or by partial concentration, including reverse osmosis; in respect of wine, by partial concentration through cooling. The addition of sucrose may only be performed by dry sugaring and only in the following areas: wine-growing zone A wine-growing zone B wine-growing zone C

41 OENOLOGICAL PRACTICES
Acidification and de-acidification Fresh grapes, grape must, grape must in fermentation, new wine still in fermentation and wine may be subject to: de-acidification in wine-growing zones A, B and C I; acidification and de-acidification in wine-growing zones C I, C II and C III (a), acidification in wine-growing zone C III (b).

42 OENOLOGICAL PRACTICES
Restrictions General All authorised oenological practices shall exclude the addition of water, except where required on account of a specific technical necessity. All authorised oenological practices shall exclude the addition of alcohol, except for practices related to obtaining fresh grape must with fermentation arrested by the addition of alcohol, liqueur wine, sparkling wine, wine fortified for distillation and semi-sparkling wine. Wine fortified for distillation shall only be used for distillation.

43 Thank you for your attention
Dariusz Goszczyński

44 This publication has been produced with the financial assistance of the European Union
The contents of this publication is the sole responsibility of NIRAS IC Sp. z o.o. and can in no way be taken to reflect the views of the European Union


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