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Grape producers

Mandatory memberships. Research, Edu. Ministry of Agriculture and Rural Development. 3, 20 Ft/L (40 %). MGSZH (NWQI). Operational costs. OMMI (CAO). W.pr. Gr.pr. 4,80 Ft/L (60 %). control. National council of Wine communities. AMC. reports. Operational costs. dues. Tenders.

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Grape producers

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  1. Mandatory memberships Research, Edu. Ministry of Agriculture and Rural Development 3, 20 Ft/L (40 %) MGSZH (NWQI) Operational costs OMMI (CAO) W.pr. Gr.pr. 4,80 Ft/L (60 %) control National council of Wine communities AMC reports Operational costs dues Tenders Regional council of Wine communities (22 - Wine regions) Marketing tax 8 Ft/L (EUR 10 M) Tenders Tenders Operational costs dues MVH (Ag. R. Dev. Ag. Magyar Bormarketing Kht. Local wine communities (127) Tenders EU subsidies Single Area Payment Scheme dues dues Wine producers Grape producers Associations, partner organisations (Ass. for Hung. Wine and grape producers, Vindependent, Wine Academy, Wine regions …) dues reports control dues Hungarian Custom and Finance Guard reports Voluntary memberships

  2. Experiences of EU membership • 5 years of membersip • New system of supports and subsidies • 20 Mn EUR/year for the wine and grape industry • App. 50 % for the structural change of plantations • 50 %: distillation, cut off, private storage, • Funds for agricultural development • supports for investments in agricultural and vinificational technologies

  3. Success of support for structural changes: • inspirations for deployments • real modernisation • hungarian grape varieties Success of support for cut off: • very popular, although there is no overproduction • increasing italian import • decrasing profitability on grape production  12% of the plantations has disappeared in 5 years

  4. Why do we need reforms in the EU? • Continuous overproduction since 2001 • Growing yield on the same territory • Decreasing wine consumption in the traditional wine drinking countries • Rising export, but decreasing EU rate on the world market • Rising import

  5. Wine balance of the EU (15)

  6. Change of wine drinking in the EU (1993-2003)

  7. Wine import to the EU (15) (kl)

  8. Actions • Prohibition for new plantations deploymentsFinal cut of grape plantations in the EU - next 3 years - 175000 ha - priorities: over age 55 years, farm termination

  9. Optional steps • SAPS -> SPS • Promotion – to 3rd countries for 50 % of the costs • Structural change of plantations (priority in the case of Hungary: 12 M €) • Green harvest (max. 60 % of the costs) • Insurance support • Technological changes by the wineries (40-50 % of the costs) • Byproduct distillation (transportation costs for alcohol and byproduct) • Alcohol distillation • Crisis distillation • Using grape juice for increasing alc. level

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