1. Eurostat WINE AND OLIVE OIL FROM COOPERATIVES I MPLICATIONS D UE TO THE NACE R EV.2 I MPLEMENTATION Agricultural Accounts and Prices Working Party 3 DECEMBER 2012 DOC. ASA/EAP/147

2. Eurostat Wine production  Extraction from EUROBASE ITM_NEWAWINE INDIC_AGProduction value at basic price UNITMillions of euro (from 1.1.1999)/Millions of ECU (up to 31.12.1998) 20002001200220032004200520062007200820092010 Greece232528303336 Spain151687210951364118185395811561020814853 France82757635758967328481748376688262807681397973 Italy20142134193719932296183417791671197318751845 Portugal457508398386397383398 399387432

3. Eurostat Wine production in Portugal  Comparison between NACE Rev.1.1 and NACE Rev.2 20002001200220032004200520062007200820092010 NACE rev 1.11 0691 2059741 0151 010947965842832875953 NACE rev 2457508398386397383398 399387432 NACE Rev.2 / NACE Rev.1.1 (%) -57-58-59-62-61-60-59-53-52-56-55 Difference (value)-612-697-576-629-614-564-567-443-433-488-533

4. Eurostat

5. Olive oil production  Extraction from Eurobase ITM_NEWAOLIVE OIL INDIC_AGProduction value at basic price UNITMillions of euro (from 1.1.1999)/Millions of ECU (up to 31.12.1998) 20002001200220032004200520062007200820092010 Greece1 3591 2411 4081 2151 5821 4111 285961824703750 Spain1 6551 9812 8022 1603 1762 8451 8381 8372 1801 5181 862 Italy1 9032 1562 0472 1992 6142 4631 9911 6791 7391 3061 311 Portugal32213445555

6. Eurostat Olive oil production in Portugal  Comparison between NACE Rev.1.1 and NACE Rev.2 20002001200220032004200520062007200820092010 NACE rev 1.18843595786144124135106136143 NACE rev 232213445555 NACE Rev.2 / NACE Rev.1.1 (%)-97-96-97 -96-97 -96-95-96 Difference (value)-85-41-57-56-83-140-120-130-100-127-133

7. Eurostat

8. PT methodological reasons  Benchmark year for EAA updated (now base 2006 in line with base of PT NA)  Methodological changes (new sources and methods)  PT EAA no longer account olive oil and wine production of cooperatives. Only is considered production of individual producers  Intraconsumption considered under Production and IC (GVA=0)

9. Eurostat  After analysed the issue, Eurostat National Accounts colleagues confirm major revisions in PT GDP/GNI according to the adoption of base 2006 as new benchmark year.  This approach is not followed by other MS: incoherence between data series

10. Eurostat Old Nace Rev.1.1 approach  Within the "Explanatory Notes" in Section A "Agriculture, hunting and Forestry", agricultural activity excludes any subsequent processing of the agricultural products (classified under division 15: Manufacture of food products, and division 16: Manufacture of tobacco products)…  Units processing its own agricultural production on the farm is classified to 01, even though the output normally is the product of division 15 and 16…

11. Eurostat NACE Rev.2 approach  Classification rules for activities and units "… when the unit produces grapes and manufactures wine from the own-produced grapes, or when it produces olives and manufactures oil from the own-produced olives... (then) the most suitable proxy variable is the "number of hours worked" and applying it to these vertically integrated activities would generally lead to classification of the units under agriculture... ''

12. Eurostat Reg. (EC) 138/2004 approach  § 1.71 Following the convention adopted by NACE Rev. 2, when own produced agricultural products are processed by the same unit of production, the processed products are also attributed to agriculture…  As an example, grape must, wine and olive oil are treated as food products in the CPA. NACE Rev. 2 classifies the production of wine and olive oil under section C ‘manufacturing’ (Classes 11,02 ‘Manufacture of wine from grape’ and 10,41 ‘Manufacture of oils and fats’).

13. Eurostat  § 1.71… "…Only the production of wine grapes and olives comes under agriculture (Classes 01,21 ‘Growing of grapes’ and 01,26 ‘Growing of oleaginous fruits’). However, following the above convention, wine and olive oil produced from grapes and olives grown by the same unit of production are attributed to agriculture"

14. Eurostat  par. 1.72 The production of wine by units closely linked to agricultural holdings is also treated as a characteristic agricultural activity in the EAA. Units with strong links to agricultural holdings include groups of producers (e.g. vine-growers' cooperatives). Their inclusion in the agricultural industry is dictated by the nature of these organisations, which have historically represented an ‘extension’ of agricultural. By contrast, the production of wine (olive oil) by agri-food businesses is excluded from the EAA (since it is clearly industrial by nature)

15. Eurostat Questions to the Members of WP:  To comment the situation raised by Portugal after last NACE Rev.2 implementation  To express their views in relation to the situation presented  To propose solutions to improve coherence and comparability in EAA series

16. Eurostat Thank you very much for your attention!