Common Organisation of Wine

The common organisation of the market in wine will be substantially reformed in the future. It currently seeks to achieve a better balance between supply and demand within the EU and make the EU wine industry more competitive in the long term. It has financed the restructuring of large areas of vineyards to align supply with demand.

Objectives

maintaining a better balance between supply and demand on the Community market, allowing producers to take advantage of expanding markets and the sector to become more competitive in the longer term.

It aims to eliminate the use of intervention as an artificial outlet for surplus production, maintaining all traditional outlets for potable alcohol and vine-based products, accommodating regional diversity and recognising the role of producer and interbranch organisations.

It simplifies considerably the legislation in this field, as part of the general drive to clarify the common agricultural policy (CAP) that was launched in 1995 and reiterated in Agenda 2000.

The common organisation of the market for wine governs:

fresh grapes other than table grapes;

grape juice and musts;

wine of fresh grapes, including sparkling wines, liqueur wines and semi-sparkling wines;

wine vinegar;

piquette;

wine lees;

grape marc.

Production potential

The Regulation maintains the principle of a prohibition until 31 July 2010 on the planting of vine varieties classed as wine grapes, unless carried out in accordance with a new planting right, a replanting right or a planting right granted from a reserve.

New planting rights are granted by Member States to producers for certain areas. Additional rights may also be granted up to a maximum amount set for each producing country. However these rights are available only to Member States that have drawn up the inventory provided for in the Regulation to help manage wine potential.

Replanting rights are granted by Member States to producers who have grubbed up, or have undertaken to grub up, an area of vines within a period of three marketing years. In principle, these replanting rights are exercised on the holding in respect of which they were granted. The period for making use of these rights ranges between five and eight years, depending on individual cases.