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Written by Agrosynergie EEIG

November – 2018

Agrosynergie Groupement Européen d’Intérêt Economique

AGRICULTURE AND RURAL

DEVELOPMENT

Evaluation of the CAP measures applicable to the

wine sector

Case study report: Spain – La Rioja

EUROPEAN COMMISSION

Directorate-General for Agriculture and Rural Development

Directorate C – Strategy, simplification and policy analysis Unit C.4 – Monitoring and Evaluation

E-mail: [email protected]

European Commission B-1049 Brussels

mailto:[email protected]

EUROPEAN COMMISSION

Directorate-General for Agriculture and Rural Development 2018 EN

Evaluation of the CAP

measures applicable to the wine sector

Case study report: Spain – La Rioja

LEGAL NOTICE

The information and views set out in this report are those of the author(s) and do not necessarily reflect the official opinion of the Commission. The Commission does not guarantee the accuracy of the data included in this study. Neither the Commission nor any person acting on the Commission’s behalf may be held responsible for the use which may be made of the information contained therein.

More information on the European Union is available on the Internet (http://www.europa.eu).

Luxembourg: Publications Office of the European Union, 2019

Catalogue number: KF-06-18-315-EN-N ISBN: 978-92-79-97414-4 doi: 10.2762/79678

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AGROSYNERGIE – Case study report: Spain – La Rioja

Evaluation of the impact of the CAP measures applicable to the wine sector i

Table of contents

1. DESCRIPTION OF THE WINE SECTOR IN LA RIOJA ........................................................................................... 1

1.1 INTRODUCTION TO THE CASE STUDY AREA .......................................................................................... 1

1.2 MAIN WINE PRODUCTS IN THE REGION .............................................................................................. 1

1.3 AREAS AND WINE PRODUCTION EVOLUTION, STRUCTURE OF THE PRODUCTION ............................................ 2

1.4 MAIN CHARACTERISTICS AND STAKEHOLDERS OF THE WINE SECTOR IN LA RIOJA ........................................... 5

2. THEME 1: NATIONAL SUPPORT PROGRAMMES ............................................................................................. 8

2.1 DESCRIPTION OF THE IMPLEMENTATION ............................................................................................ 8

2.2 EFFECTS ON THE NSP AT THE LEVEL OF GROWERS ............................................................................... 14

2.3 EFFECTS OF THE NSP AT THE LEVEL OF PRODUCERS AND PRODUCTS ........................................................ 21

2.4 EFFECTS OF THE PROMOTION MEASURE ........................................................................................... 26

2.5 EFFECTS OF THE INFORMATION MEASURE ......................................................................................... 32

2.6 EFFICIENCY OF THE MANAGEMENT OF THE NSP ................................................................................. 33

2.7 COHERENCE OF THE NSP ............................................................................................................. 42

2.8 RELEVANCE OF THE NSP ............................................................................................................. 45

2.9 EU ADDED VALUE AND SUBSIDIARITY .............................................................................................. 49

3. THEME 2: SCHEME OF AUTHORISATIONS OF VINE PLANTINGS .................................................................... 51

3.1 SYNTHESIS OF THE LITERATURE ...................................................................................................... 51

3.2 SYNTHESIS OF THE INTERVIEWS ..................................................................................................... 51

3.3 CONCLUSION OF THE EXPERTS ....................................................................................................... 53

4. THEME 3: WINE PRODUCTS DEFINITION, RESTRICTIONS ON OENOLOGICAL PRACTICES AND AUTHORISED WINE GRAPE VARIETIES ......................................................................................................... 54

4.1 DETAILED DESCRIPTION OF THE IMPLEMENTATION AT MEMBER STATE AND REGIONAL LEVEL ......................... 54

4.2 COMPETITIVENESS DISTORTIONS DUE TO SPECIFIC RULES ON OENOLOGICAL PRACTICES ................................. 56


4.4 COMMENTS AND CONCLUSIONS OF THE EXPERT ................................................................................. 61

5. THEME 4: EU RULES ON LABELLING AND PRESENTATION ............................................................................ 62

5.1 DESCRIPTION OF THE LABELLING RULES APPLIED AT MEMBER STATE AND LOCAL LEVEL ................................. 62

5.2 EXISTING NATIONAL DATA ON NON-COMPLIANCE WITH LABELLING RULES ................................................. 66


5.4 COMMENTS AND CONCLUSIONS OF THE EXPERT ................................................................................. 70

6. THEME 5: CERTIFICATION PROCEDURES, MONITORING AND CHECKS ......................................................... 71

6.1 DESCRIPTION OF THE LOCAL IMPLEMENTATION OF THE RULES ................................................................ 71

6.2 EXISTING NATIONAL DATA ON NON-COMPLIANCE AND WORKLOAD ......................................................... 76


ANNEXES .............................................................................................................................................................. 78

ANNEX 1 - SURFACE AREA PER WINEGRAPE VARIETY IN LA RIOJA .................................................................... 78

ANNEX 2 – ELIGIBLE COSTS UNDER RESTRUCTURING AND RECONVERSION MEASURE ............................................ 79

ANNEX 3 – DESCRIPTION OF THE NSP MEASURES ...................................................................................... 80


Evaluation of the impact of the CAP measures applicable to the wine sector ii

List of tables

Table 1: Vineyard areas and production in La Rioja ...................................................................................................... 2 Table 2: Number of wine growers holding in La Rioja .................................................................................................. 3 Table 3: Planting rights.................................................................................................................................................. 5 Table 4: NSP annual financial allocation programmed and expenditure at national level (Millions of euro) .............. 8 Table 5:Output indicators cumulated on the 2014/2017 period .................................................................................. 9 Table 6: Implementation choices on the restructuration and reconversion measure ................................................. 9 Table 7: Implementation choices on the investments measure ................................................................................. 10 Table 8: Implementation choices on the Promotion measure ................................................................................... 12 Table 9: Implementation choices on the Innovation measure ................................................................................... 12 Table 10: grape varieties in vineyard affected by the restructuration and conversion measure ............................... 18 Table 11: Rate of achievement of the foreseen expenditures per measures ............................................................. 33 Table 12: Main criteria/procedure(s) ensuring the relevance of the selected applications ....................................... 33 Table 13: Measures with similar objectives opened to wine growers/producers ...................................................... 43 Table 14: SWOT analysis of the wine sector at regional level (La Rioja) ..................................................................... 45 Table 15: Execution rate of the NSP budget in Spain .................................................................................................. 47 Table 16: Prioritization criteria of the demands for new plantations ......................................................................... 51 Table 17: Rate of wine grape varieties authorised to produce wine under PDO "Rioja" ........................................... 55 Table 18: Wine grape varieties authorised to produce PDO "Rioja" .......................................................................... 55 Table 19: Description of main local specificities in oenological practices .................................................................. 55 Table 20: Main differences in oenological practices between wine under PDO “”Rioja” and its main competitors ................................................................................................................................................................. 57 Table 21: Number of controls performed in La Rioja in 2018 ..................................................................................... 66 Table 22: controls performed in La Rioja in 2017 ....................................................................................................... 66 Table 23 : wine grape variety in La Rioja (in hectare) ................................................................................................ 78 Table 24: Description of the measures eligible under the National Support Programmes ........................................ 80

List of figures

Figure 1: La Rioja wine map .......................................................................................................................................... 1 Figure 2: Wine products distribution in volume in La Rioja (average 2014-2017) ........................................................ 2 Figure 3: Evolution of the wine production by colour in La Rioja ................................................................................. 3 Figure 4: Distribution of La Rioja exports in volume and value .................................................................................... 3 Figure 6: Area distribution according to white grape varieties in 2015 ........................................................................ 4 Figure 7: Area distribution by red varieties in 2015 ...................................................................................................... 4 Figure 8: distribution of the PDO Rioja wine production between actors in la Rioja ................................................... 7 Figure 9: Distribution of expenditures from 2014 to 2017 per measures .................................................................... 8 Figure 10. Restructuring and reconversion measure in Spain and per Autonomous Communities for the last programming periods (2001-2008; 2009-2013; 2013-2016, two years missing) ................................................. 14 Figure 11. Area under vines for wine production in 2017, in hectares ....................................................................... 14 Figure 12: NSP executed budget (.000€) 2014-2016 period ....................................................................................... 16 Figure 13. List of the authorized grape varieties to be produced for winemaking in La Rioja .................................... 19 Figure 14: Evolution of export wine in Value .............................................................................................................. 26 Figure 15: Position of La Rioja’s wine value compared to national wine value .......................................................... 27 Figure 16: Part of PDO wine volume exported compared to total exported wine volume ........................................ 27 Figure 17: Position of La Rioja’s wine volume compared to national wine volume ................................................... 28 Figure 18: NSP executed budget (.000€) 2014-2016 period ....................................................................................... 47 Figure 19. List of the authorized grape varieties to be produced for winemaking in La Rioja .................................... 54


Evaluation of the impact of the CAP measures applicable to the wine sector iii

Glossary

CAP Common Agricultural Policy

COMTRADE United Nations International Trade Statistics Database

CMEF Common Monitoring and Evaluation Framework

CMO Common Market Organisation

CN Combined Nomenclature

CTR Criterion

EAGF European Agricultural Guarantee Fund

EAFRD European Agricultural Fund for Rural Development

EAV European Union added value

EC European Commission

EEA European Environment Agency

EEC European Economic Community

EEIG European economic interest group

EQ Evaluation question

EU European Union

EUROSTAT Statistical Office of the European Commission

FADN Farm Accountancy Data Network

FAO Food and Agriculture Organization of the United Nations

FNVA Farm net value added

GATT General Agreement on Tariffs and Trade

MIO Million €

MS Member State

NGO Non-Governmental Organization

NSP National Support Programmes

OIV International Organisation of Vine and Wine

PDO/PGI Protected Designations of Origin (PDO) and Protected Geographical Indications (PGI)

PO Producer Organisation

PPS Purchasing Power Standard

RD Rural Development

RDP Rural Development Program

RDR Rural Development Regulation

SDG Sustainable Development Goals

SME Small and Medium Enterprises

SO Standard Output

SPS Single Payment Scheme

SSG Special Agriculture Safeguard

SWOT Strengths, Weaknesses, Opportunities, Threats

TEU Treaty on the European Union

TFEU Treaty on the Functioning of the European Union

UAA Utilised Agricultural Area

USA United States of America

USDA United States Department of Agriculture

VAT Value Added Taxes

WTO World Trade Organisation

http://www.oiv.int/


Evaluation of the impact of the CAP measures applicable to the wine sector iv

0. LIST OF THE LITERATURE AND INTERVIEWS

List of interviewed organisations

Organisation

Ministry of Agriculture, Fisheries, Food and Environment – General Directorate of Agricultural Production and Markets - General Sub-Directorate of Fruits and Vegetables and Viticulture

Ministry of Agriculture, Fisheries, Food and Environment - General Directorate of the Food Industry - General Sub-directorate of Differentiated Quality and Ecological Production

Ministry of Agriculture, Fisheries, Food and Environment - General Directorate of the Food Industry – General Sub-directorate of Industrial Development and Innovation

Cooperativas Agroalimentarias España – Agri-food cooperatives of Spain - International and EU Department

Cooperativas Agroalimentarias España – Agri-food cooperatives of Spain – Department of Wine

Federación Española del Vino (FEV) - Spanish Federation of Wine – International Department

Federación Española del Vino (FEV) - Spanish Federation of Wine – Communication Department

Federación Española del Vino (FEV) - Spanish Federation of Wine – Legal Department

The Regional Government of La Rioja – Agriculture, Livestock and Environment Department - Vineyard Registration Department

The Regional Government of La Rioja - Agriculture, Livestock and Environment Department – Department of Rural Development Programs Monitoring

The Regional Government of La Rioja - Agriculture, Livestock and Environment Department – Department for Rural Development Support

The Regional Government of La Rioja - Agriculture, Livestock and Environment Department – Department of Food Quality Control

The Regional Government of La Rioja - Agriculture, Livestock and Environment Department - Department of Agri-Food Quality and Promotion Systems

Grupo Rioja – Group of Wine Companies from La Rioja

Bodegas Familiares de Rioja – Family wineries from La Rioja

Union de Agricultores y ganaderos de La Rioja (UAGR) - Union of Farmers and ranchers of La Rioja

Consejo Regulador DOCa Rioja – PDO “Rioja” Managing Organization

Bodegas Patrocinio – Wine Cooperative

Bodegas Taron – Wine Cooperative

Bodega La Rioja Alta – Winery

Bodega Ramón Bilbao – Winery

Documents and reports collected

[Author/institution, year, title, editor/type of documents, number of page, internet source if any]

- Eurostat, 2017, Structure of the vineyards in 2015, press release 57/2017, 4 p., internet source : http://ec.europa.eu/eurostat/documents/2995521/7964287/5-04042017-BP-FR.pdf/fc7b7cfb-2d34-42ab-b27e-a51195098959

- Ministerio de Agricultura y Pesca, Alimentación y Medio Ambiente (MAPAMA), Datos de las denominaciones de origen protegidas de vinos (DOPs), campana 2016-2017, 2018, information report, 56 p.

- MAPAMA, 2018, viñedo anuario 2017-2012, data base, excel files - MAPAMA, 2016,

http://ec.europa.eu/eurostat/documents/2995521/7964287/5-04042017-BP-FR.pdf/fc7b7cfb-2d34-42ab-b27e-a51195098959http://ec.europa.eu/eurostat/documents/2995521/7964287/5-04042017-BP-FR.pdf/fc7b7cfb-2d34-42ab-b27e-a51195098959


Evaluation of the impact of the CAP measures applicable to the wine sector v

o a) Reporte : Información sobre autorizaciones para nuevas plantaciones de viñedo 2016, internet source : http://www.mapama.gob.es/es/agricultura/temas/producciones-agricolas/160706informacionnnpp2016_tcm7-426224_tcm30-58989.pdf

o b) Reporte, Análisis de la superficie y de la producción vitivinicola, internet source : http://www.mapama.gob.es/es/agricultura/temas/producciones-agricolas/160412pto2reunion12abrilanalisissuperficieyproduccionvitivinicola_tcm30-58984.pdf

- Consejo regulador Cava, 2013, specifications, 14p., internet source: http://www.docava.es/wp-content/uploads/2015/05/PliegoCondicionesDOPCava_2013.pdf

- Gobierno de La Rioja, 2018, reporte, 10p. - French Wine Institute (IFV), 2012, vins et vignobles d’Espagne, report, 26 p., internet source :

https://www.vignevin-sudouest.com/publications/voyage-etude/documents/synthese-espagne.pdf - IVICAM Instituto de la Vid y del Vino Castilla La Mancha, 2013, El sector vitivinícola en Castilla La

Mancha, 58 p. internet source : http://pagina.jccm.es/ivicam/formacion/documentacion/villarrubia.pdf

- MAPAMA, Datos de las indicaciones geográficas protegidas (igps) de vinos - vinos de la tierra - campaña 2015/2016, 2017, report, 31 p.

- ASAJA, Agricultural Association Young Farmers of Castilla-La Mancha, 2018, Presentation of the structure, website, internet source: http://www.asaja.com/asaja

- UPA, Union of Small Farmers of Castilla-La Mancha, 2018, website, internet source: http://upaclm.es/accion-sindical/

- COAG, The Coordinator of Farmers and Livestock Organizations, 2018, website, internet source: http://www.coagclm.org/coa-clm/

- FEV, Spanish Federation of Wine, 2018, website, internet source: http://www.fev.es/v_portal/apartados/apartado.asp?te=6

- CECAM, 2018, website, internet source: http://www.cecam.es/organizaciones - FEVIN, Federación De Empresas Vitivinícolas De Castilla-La Mancha, 2018. - MAPAMA, Secretario de Estado de Comercio, database, 2018, internet source:

http://datacomex.comercio.es/CabeceraPersonalizada.aspx?action=drilldown&eje=Columnas&valor=Total%20Fechas&unvalor=%5BFechas%5D.%5BTotal%20Fechas%5D&nivel=0&otroValor=total&otroNivel=0&id=4

- OIV, 2017 World VitiViniculture Situation, Statistical report on World VitiViniculture, 2017, internet source: http://www.oiv.int/js/lib/pdfjs/web/viewer.html?file=/public/medias/5479/oiv-en-bilan-2017.pdf

- Vineyard media, 2018, Castilla la Mancha vineyard and wine regions map, map, internet source: https://vineyards.com/wine-map/spain/castilla-la-mancha

- Ministry of Agriculture, Environment and Rural Development, El Gobierno de Castilla-La Mancha avanza en el Plan Estratégico del Sector Vitivinícola con la Asociación de Vinos de Castilla-La Mancha, article, 2018, internet source: http://www.castillalamancha.es/actualidad/notasdeprensa/el-gobierno-de-castilla-la-mancha-avanza-en-el-plan-estrat%C3%A9gico-del-sector-vitivin%C3%ADcola-con-la

- ICEX, Espana, Exportaciones E inversiones, 2017, Informe Sectorial de Castilla-La Mancha, report, 12 p., internet source: https://www.icex.es/icex/GetDocumento?dDocName=DOC2017712367&urlNoAcceso=/icex/es/registro/iniciar-sesion/index.html?urlDestino=http://www.icex.es/icex/es/navegacion-principal/que-es-icex/donde-estamos/red-territorial-de-comercio/navegacion-principal/inform.

- VÍCTOR DE LA SERNA, El Mundo Vino, El desafío de Castilla-La Mancha, 2013, article, Interent source: http://elmundovino.elmundo.es/elmundovino/noticia.html?vi_seccion=12&vs_fecha=201310&vs_noticia=1382963863

- Edgardo Díaz Araujo, María José Iuvaro, 2006, Vitivinicultura y derecho, p.336, internet source: https://books.google.fr/books?isbn=9870218113

- FAM, Circular relating to the setting up by FRANCEAGRIMER of an aid for wine producers, 2009, p. 22, internet source: http://www.franceagrimer.fr/fam/content/download/7104/41396/file/1269_CIRCULAIREGENERALE0910_310709.pdfBoard of Castilla y Leon, obtención de derivados vínicos, p. 89, internet source: http://webcache.googleusercontent.com/search?q=cache:E56rg6ubP7kJ:cepamedinadelcampo.centros.educa.jcyl.es/sitio/upload/manual_derivados.doc+&cd=2&hl=fr&ct=clnk&gl=fr

- Agri food cooperative, WHAT'S AGRI-FOOD COOPERATIVES SPAIN?, 2018, website, internet source: http://www.agro-alimentarias.coop/5/uk/5_1_1.php

http://www.mapama.gob.es/es/agricultura/temas/producciones-agricolas/160706informacionnnpp2016_tcm7-426224_tcm30-58989.pdfhttp://www.mapama.gob.es/es/agricultura/temas/producciones-agricolas/160706informacionnnpp2016_tcm7-426224_tcm30-58989.pdfhttp://www.mapama.gob.es/es/agricultura/temas/producciones-agricolas/160412pto2reunion12abrilanalisissuperficieyproduccionvitivinicola_tcm30-58984.pdfhttp://www.mapama.gob.es/es/agricultura/temas/producciones-agricolas/160412pto2reunion12abrilanalisissuperficieyproduccionvitivinicola_tcm30-58984.pdfhttp://www.mapama.gob.es/es/agricultura/temas/producciones-agricolas/160412pto2reunion12abrilanalisissuperficieyproduccionvitivinicola_tcm30-58984.pdfhttp://www.docava.es/wp-content/uploads/2015/05/PliegoCondicionesDOPCava_2013.pdfhttp://www.docava.es/wp-content/uploads/2015/05/PliegoCondicionesDOPCava_2013.pdfhttps://www.vignevin-sudouest.com/publications/voyage-etude/documents/synthese-espagne.pdfhttp://pagina.jccm.es/ivicam/formacion/documentacion/villarrubia.pdfhttp://www.asaja.com/asajahttp://upaclm.es/accion-sindical/http://www.coagclm.org/coa-clm/http://www.fev.es/v_portal/apartados/apartado.asp?te=6http://www.cecam.es/organizacioneshttp://datacomex.comercio.es/CabeceraPersonalizada.aspx?action=drilldown&eje=Columnas&valor=Total%20Fechas&unvalor=%5BFechas%5D.%5BTotal%20Fechas%5D&nivel=0&otroValor=total&otroNivel=0&id=4http://datacomex.comercio.es/CabeceraPersonalizada.aspx?action=drilldown&eje=Columnas&valor=Total%20Fechas&unvalor=%5BFechas%5D.%5BTotal%20Fechas%5D&nivel=0&otroValor=total&otroNivel=0&id=4http://datacomex.comercio.es/CabeceraPersonalizada.aspx?action=drilldown&eje=Columnas&valor=Total%20Fechas&unvalor=%5BFechas%5D.%5BTotal%20Fechas%5D&nivel=0&otroValor=total&otroNivel=0&id=4http://www.oiv.int/js/lib/pdfjs/web/viewer.html?file=/public/medias/5479/oiv-en-bilan-2017.pdfhttp://www.oiv.int/js/lib/pdfjs/web/viewer.html?file=/public/medias/5479/oiv-en-bilan-2017.pdfhttps://vineyards.com/wine-map/spain/castilla-la-manchahttp://www.castillalamancha.es/actualidad/notasdeprensa/el-gobierno-de-castilla-la-mancha-avanza-en-el-plan-estrat%C3%A9gico-del-sector-vitivin%C3%ADcola-con-lahttp://www.castillalamancha.es/actualidad/notasdeprensa/el-gobierno-de-castilla-la-mancha-avanza-en-el-plan-estrat%C3%A9gico-del-sector-vitivin%C3%ADcola-con-lahttps://www.icex.es/icex/GetDocumento?dDocName=DOC2017712367&urlNoAcceso=/icex/es/registro/iniciar-sesion/index.html?urlDestino=http://www.icex.es/icex/es/navegacion-principal/que-es-icex/donde-estamos/red-territorial-de-comercio/navegacion-principal/informhttps://www.icex.es/icex/GetDocumento?dDocName=DOC2017712367&urlNoAcceso=/icex/es/registro/iniciar-sesion/index.html?urlDestino=http://www.icex.es/icex/es/navegacion-principal/que-es-icex/donde-estamos/red-territorial-de-comercio/navegacion-principal/informhttps://www.icex.es/icex/GetDocumento?dDocName=DOC2017712367&urlNoAcceso=/icex/es/registro/iniciar-sesion/index.html?urlDestino=http://www.icex.es/icex/es/navegacion-principal/que-es-icex/donde-estamos/red-territorial-de-comercio/navegacion-principal/informhttp://elmundovino.elmundo.es/elmundovino/noticia.html?vi_seccion=12&vs_fecha=201310&vs_noticia=1382963863http://elmundovino.elmundo.es/elmundovino/noticia.html?vi_seccion=12&vs_fecha=201310&vs_noticia=1382963863http://www.franceagrimer.fr/fam/content/download/7104/41396/file/1269_CIRCULAIREGENERALE0910_310709.pdfhttp://www.franceagrimer.fr/fam/content/download/7104/41396/file/1269_CIRCULAIREGENERALE0910_310709.pdfhttp://www.agro-alimentarias.coop/5/uk/5_1_1.php


Evaluation of the impact of the CAP measures applicable to the wine sector vi

- Alimarket, 2012, Azumancha presenta su Plan Estratégico, internet source: https://www.alimarket.es/alimentacion/noticia/89813/azumancha-presenta-su-plan-estrategico

- MAPAMA, 2016, POTENCIAL DE PRODUCCIÓN VITÍCOLA EN ESPAÑA, report, 16 p., internet source: http://www.mapama.gob.es/es/agricultura/temas/regulacion-de-los-mercados/informepotencialproduccionvitivinicolaes2016_tcm30-135339.pdf

- OEMV, Spanish observatory of the wine market, 2016, Superficie de viñedo en España 2016 La superficie de viñedo en España se sitúa en las 955.717 hectáreas en 2016 (+0,1%), 5 p., internet source: http://www.lomejordelvinoderioja.com/noticias/201512/01/superficie-vinedo-crece-rioja-20151201005854-v.html.

- Consejo regulador DOCa Rioja, 2017, MEMORIA 2017, 80 p., internet source: https://es.riojawine.com/multimedia/files/publicaciones/MemoriaConsejo_2017.pdf

- Agri-food cooperatives, 2015, Las bodegas cooperativasen Castilla-La Mancha:Protagonistas en la cadena de valor, 140 p.

- MEDINA-ALBALADEJO, 2014, Crisis, Cooperativas y Estado En El Sector Vitivinícola Español Durante El Franquismo, internet source: http://portal.uc3m.es/portal/page/portal/instituto_figuerola/programas/pccmr/continuidadycambios/Medina_Albaladejo.pdf

- Consejo regulador La Rioja, 2017, Estadísticas 2017, El Rioja en cifras, reporte, 14 p. internet source: https://es.riojawine.com/multimedia/files/publicaciones/ESTADISTICAS_Rioja_2017.pdf

- Grupo Rioja, 2018, website, internet source: http://www.gruporioja.es/en/presentacion-2 - Bodegas familaires de Rioja, 2018, website, internet source :

http://www.bodegasderioja.com/en/about-us/ - Consejo regulador Rioja, 2015, 2015 ANNUAL REPORT, report, 80 p. internet source:

https://es.riojawine.com/multimedia/files/publicaciones/Annual_report_Rioja_2015.pdf - OEMV, Spanish Observatory of the Wine Market, 2017, Memoria de actividades realizadas por el

Observatorio Español del Mercado del Vino, 62 p.

https://www.alimarket.es/alimentacion/noticia/89813/azumancha-presenta-su-plan-estrategicohttp://www.mapama.gob.es/es/agricultura/temas/regulacion-de-los-mercados/informepotencialproduccionvitivinicolaes2016_tcm30-135339.pdfhttp://www.mapama.gob.es/es/agricultura/temas/regulacion-de-los-mercados/informepotencialproduccionvitivinicolaes2016_tcm30-135339.pdfhttp://www.lomejordelvinoderioja.com/noticias/201512/01/superficie-vinedo-crece-rioja-20151201005854-v.htmlhttp://www.lomejordelvinoderioja.com/noticias/201512/01/superficie-vinedo-crece-rioja-20151201005854-v.htmlhttps://es.riojawine.com/multimedia/files/publicaciones/MemoriaConsejo_2017.pdfhttp://portal.uc3m.es/portal/page/portal/instituto_figuerola/programas/pccmr/continuidadycambios/Medina_Albaladejo.pdfhttp://portal.uc3m.es/portal/page/portal/instituto_figuerola/programas/pccmr/continuidadycambios/Medina_Albaladejo.pdfhttps://es.riojawine.com/multimedia/files/publicaciones/ESTADISTICAS_Rioja_2017.pdfhttp://www.gruporioja.es/en/presentacion-2http://www.bodegasderioja.com/en/about-us/https://es.riojawine.com/multimedia/files/publicaciones/Annual_report_Rioja_2015.pdf


Evaluation of the impact of the CAP measures applicable to the wine sector 1

1. DESCRIPTION OF THE WINE SECTOR IN LA RIOJA

1.1 Introduction to the case study area

With nearly one million hectares of vineyards (941 000 ha, or 30% of the total EU area), Spain is the Member State with the largest area dedicated to the production of wine grapes in 2015. The country represents 36 % of PGO/PGI wines in the UE.

1 Spain has become the world's largest exporter of wine in volume. The country is one

of the leading suppliers of bulk wine in major import markets such as France, Germany or the United-Kingdom. Nevertheless, to meet the expectations of domestic and international markets, Spain is moving towards a greater valuation of its wine by improving its quality.

2

The region of La Rioja is clearly oriented toward red and rosé wines. Indeed, these wines represent 93% of the total marketed wine from La Rioja. The region represents 4.9% of the national area under vines. In the wine sector, La Rioja is the eleventh Autonomous Community regarding the sectoral economic growth, in absolute terms (+3.3 million euros) being the third most important exporter after Castilla La Mancha and Catalonia. As shown in the Figure 1 below, most of the territory of the Region is covered by the PDO Rioja.

Figure 1: La Rioja wine map

Source: Source: Vineyard media, 2018

1.2 Main wine products in the region

The region is oriented towards the production of quality wine. Most of the regional wine is produced under PDO (93%), while only 0.04% is produced under PGI and 7% is produced without mention of a PDO/PGI as displayed in the Figure 2 below. The region also produces sparkling wine. La Rioja doesn’t produce any must.

1 Eurostat, 2017

2 CNIV, FAM, 2016



Figure 2: Wine products distribution in volume in La Rioja (average 2014-2017)

Source: MAPAMA, anuarios de estadistica

La Rioja has an historical tradition of quality wines even if it is only since the end of the 19th century that the region started to orientate its production towards great quality wine and develop its reputation. In 1926, a Regulatory Council was created in La Rioja. Then the year 1932 marks the beginning of the system of Denomination of Origin in La Rioja. This Spanish system has many similarities with the French one. The DO system started in La Rioja, and then, was extended to many other Spanish wine regions.

The region produces one PDO called “Rioja”. It’s is mainly characterized by red wine obtained from Tempranillo, Garnacha, Graciano, Mazuelo and Maturana Tinta and white wine obtained from the following varieties: Viura, Malvasía, Garnacha Blanca, Tempranillo Blanco, Maturana Blanca, Turruntés, Chardonnay, Sauvignon Blanc and Verdejo. The PDO covers approximately 43,885 ha of the 52,076 hectares under vines in the region, representing around 84% of the regional area under vines. In La Rioja, there is one PGI called “Valles de Sadacia” covering over 185.2 ha in the region (0.36% of the regional vineyard area) producing only white wines.

1.3 Areas and wine production evolution, structure of the production

When analysing the area under vineyard in la Rioja – displayed in the Table 1- one can observe a steady increase.

Table 1: Vineyard areas and production in La Rioja

2012 2013 2014 2015 2016 2017

PDO

Vineyard area (ha) 42,232.21 44,736.00 45,991.00 46,613.00 46,561.00 44,034.15

Production (hl) 1,763,214 1,786,932 2,026,472 1,695,223 1

PGI

Vineyard area (ha) 185.2 185.2 185.2 185.2 185.2 185.2

Production (hl) 1,150 2,600 895 1,559 800 300

Wine without PDO/PGI

Vineyard area (ha)

Production (hl) 78,313* 99,295* 159,645* 36,564* 1

Liqueur wine

Production (hl) n.a. n.a. n.a. n.a.

*without available data on varietal wines

Sources: MAPAMA PGI report and Denominaciones de Origen Calificada, MAPAMA, 2018 1

La Rioja focuses its production on bottled wines with added value: PDO “Rioja” wine must be bottled before marketed as indicated in the PDO specifications. The Spanish sales have a much higher part of bulk wine sold compared to bottled wine sold.

According to the Rioja Government, the differences of PGI wine production between 2012 and the following years may be due to their commercial strategies. The reduction of PGI production (in volume) may be explained

PDO wines 93%

PGI wines 0.04%

Wine without PDO/PGI

7%



by the fact that producers under the PGI used to produce mainly two types of wines: dry and semi-dry wines while now they only produce semi-dry wines.

La Rioja mainly produces red wines, as shown in the Figure 3 below. The production of wine in the region is clearly oriented toward the red or rosé wines in terms of quantity however one can observe a significant increase in the production of white wine. Between 2012 and 2017 the white wine production increased by 64% whereas the red or rosé production is quite stable with slight decline of 10% during the same period. Still, the production of wine from La Rioja stays oriented toward the red and rosé wines.

Figure 3: Evolution of the wine production by colour in La Rioja

Source: MAPAMA

Bottled PDO wines remain the main exported product by the Autonomous Community with exports reaching in 2017 73.4 million liters worth 286 million euros out of 96 million liters exported by the region worth 324.8 million euros. It represents 88% of the exported value - as shown in the Figure 5 below - and 76.5 % of the total exported wine volume produced in La Rioja. The second most important category of wine exported is PGI wine, with an exported value that increased by 6.5 % in 2017 compared to 2016 (in volume +0.4%), reaching a total of 12.8 million euros (in volume:5.6 million liters), with an average price of 2.30 euros per liter (+ 6.1 % compared to 2016). In 2017, wines without PDO/PGI represent 3 % in value and 9% in volume of the total exported wine from La Rioja.

Figure 4: Distribution of La Rioja exports in volume and value

Source: Rioja Government, 2018

Table 2: Number of wine growers holding in La Rioja

2012 2013 2014 2015

Total 13.207 12.921 12.668 12.365

Average size (ha) 3,35 3,42 3,63 3,77

100

110

120

130

140

150

160

170

1.500

1.600

1.700

1.800

1.900

2.000

2.100

2.200

1 2 3 4 5

Evolution of the production by type of wine in La Rioja (in thousands of hectoliters)

Red or Rosé wines White wines

2012 2013 2014 2015 2017



Sources: MAPAMA, 2016

The number of wine growing holdings in la Rioja is continuously decreasing between 2012 and 2015. On the other hand, their average size has significantly increased on the same period (+13%), showing an expansion of holdings.

Figure 6: Area distribution according to white grape varieties in 20153

Source: MAPAMA’s survey, 2015

The white grape variety Viura, also known as Macabeo is the main white grape variety grown in Rioja: it represents 68% of the area planted with white grape varieties as displayed in the Figure 6. Then follows the Tempranillo Blanco with 12% of the area planted which represent a significant part of the area aswell. One explanation could be that the white grape variety Tempranillo Blanco have benefited from the notoriety of the famous red grape variety “Tempranillo”. Besides, it can be noticed that the region has planted a few white international varieties such as Chardonnay, Sauvignon Blanco and Verdejo which represent a limited area respectively: 3%, 4% and 4% of the vineyard in the region.

Figure 7: Area distribution by red varieties in 20154

Source: MAPAMA’s survey, 2015

As highlighted in the Figure 7, the Tempranillo red grape variety is the main red grape variety planted covering 85% of the area dedicated to red grape varieties. It is important to precise that it is the region’s most typical

3 Other varieties



wine grape variety. There are 5 other red grape varieties planted in La Rioja covering less than 100 hectares. The diversity of grape varieties used for red wine is less important than varieties used for white wine.

The Annex 1 shows the area covered by wine grape varieties in La Rioja over the 2012-2017 period. There are very specific regional grape varieties which are not found in other Spanish regions. In 2015, according to official statistics from the Ministry of Agriculture, 98% and 81% of the total Spanish area planted respectively with Maturana Blanca and Tempranillo Blanco were located in La Rioja. The total area planted with these two-specific regional grape varieties do not even represent more than 1% of the national vineyard area. Once again, La Rioja really stands out from the rest of the country regarding wine grape variety planting strategy. Concerning red wine grape varieties, no significant change occurred during the period, except the planting of two new varieties in 2016 and 2017: Maturana Tinta and Pinot Noir. Concerning the white grape varieties, one should notice that from 2013 until 2016 only two white grape variety was planted (the Macabeo). Only since 2016, The region started to diversify its production of white grape varieties.

Table 3: Planting rights

Regional contingent Regional limits Admissible Demanded Attributed Rejected

Area Number Area Number Area Number Area Number

PGO 387 5.030 3.857 5.512 4.122 387 2.792 5125 1 330

PGI - - - - - - -

Wine without GI - - - - - - -

Sources: MAPAMA, 2016 a)

In Spain surface concession procedure in 2016 is performed through a scoring approach with priorization criteria:

- Young new winegrowers - Good behaviour: no abandoned vineyard, with no illegal vineyard,

As shown is the Table 4: Planting rights above the regionals limits have been reached and it concerns only new wine growers. Moreover, it can be noticed a lot of planting requests were rejected because of the very restrictive regional limits. Thanks to the table presented above, one could understand the regional strategy in the wine sector. Indeed, by setting a restrictive limit on new plantings in PDO areas, the region aims to hinder a significant increase of the surface area under vines in the PDO area in order to limit the offer of PDO “Rioja” wine that would lead to a fall of the PDO “Rioja” wine price. The new scheme of authorization allows the PDO managing organization to regulate the market.

The weight of cooperatives in the wine sector of La Rioja remains rather marginal since the number of cooperative declarants in 2016 was 46 (i.e. only 11% of the total number of producers).

1.4 Main characteristics and stakeholders of the wine sector in La Rioja

1.4.1 Overview of the organisation of the wine sector of La Rioja

Administration

At national level, Ministry of Agriculture, Fisheries, Food and Environment is in charge of the wine sector and the management of the National Support Program (NSP), planting rights, oenological practices rules and wine grape varieties.

At regional level, the Rioja government is composed by different Regional Directorates, among them the General Directorate for Rural Development which possess a department managing operations relating to the vineyard: planting rights, vineyard register; the Department of Food Quality Control is in charge of fraud control and the departments of Agri-Food Quality and Promotion Systems and Rural Department Support in charge of the management of the investment and promotion measures.

Besides la Rioja government has a department dedicated to research in viticulture and oenology working on the preservation of genetic material with a large bank of clones, study of minority grape varieties , ground covers, microbiology and microorganisms, winemaking technology. The Section of Viticulture and Oenology is



integrated in the Institute of Vine and Wine Sciences (ICVV), center in which the University of La Rioja and the Government of La Rioja participate.

Wine grower’s organisation

At national level, In Spain there is no organization dedicated to wine growers. It is the farmers' organization that represents the interest and assesses wine growers. They are present at the regional level and are organized in network with their network head at the national level. There are three main organisations:

In Spain, the Agricultural Association of Young Farmers (ASAJA) is an agricultural union in the wine sector. Its role is to represent, manage, defend and promote the professional interests of the agrarian sector in general.

The Coordinator of Farmers and Ranchers Organizations (COAG) represents, manages, promotes and defends the specific interests of affiliated unions and agricultural professionals before any public or private institution. They participate in the elaboration, management, monitoring and control of the agrarian policy, in collaboration with the authorities.

The Union of Small Farmers of Castilla-La Mancha (UPA) is a member of the Committee of Agricultural Professional Organizations of the European Union (COPA). The UPA is also a Professional Agricultural Organization that defends at regional, national and European level the interests of the agrarian family farm. it offers its members services - among others - processing CAP files, updating the vineyard register, and restructuring the vineyard

5.

At regional level, the most important wine grower’s organisation, are :

- the Federation of Agricultural Cooperatives of La Rioja (FECOAR) and the Union of Farmers and Breeders of La Rioja (UAGR-COAG)

- The ARAG - ASAJA -Association of Farmers and Breeders - Agrarian Association of Young Farmers, is the largest agrarian organization in La Rioja,

Both organisations have an important role in the wine sector in the region. Among other activities, they oversee the restructuring and reconversion of the vineyard, help the winegrowers to apply for grants, and advise them on cropping system management.

Wineries organisation

At national level

The Spanish Wine Federation (FEV) is the most representative private organization that brings together the downstream part of the spanish wine sector, both processors and marketers of all types of wine products. The objectives of the FEV is to enhance the competitiveness of the wine sector. It influences political decision, and acts as representatives of wine producers and marketers. The FEV is also involved in bringing together the wine companies. The federation works with national and regional administrations and therefore it has been recognised since 1987 as a Collaborating Entity.

Agri-food Cooperatives Organization groups (Cooperativas Agroalimentarias de España) all the Spanish cooperatives including the wine sector. The Vine and Wine Department carries out studies, analysis, consultancies and interpretation and dissemination of all regulations. Market follow-ups are carried out and circular letters are prepared for associates.

At regional level, Association of Family Bodegas of Rioja is an organization gathering small family wineries: “Twenty wine growers and small wineries of Rioja constitute in 1991 the association to defend the interests of the family business model.” It also defends the prohibition of the coexistence of Rioja brands in other viticultural regions, they were protagonists in the investigation, recovery and authorization of minority native grape varieties.

Grupo Rioja (Grupo de Empresas Vinícolas de Rioja) is a business association that joins more than fifty wineries of all sizes and characteristics and represents approximately two thirds of Rioja wine sales. It has different

5 UPA, 2018



missions: the defence and representation of the associates’ interests, information services to the members, and promotional activities. “Grupo Rioja works in general trade promotion. Besides, as President of the Promotion Committee of the PDO managing organization, Grupo Rioja works actively coordinating and designing the promotional activities and programs of this Institution.”

Interbranch organization

At national level, in Spain all the branches are grouped together by the Regulatory Councils. The main example of Regulatory Council in La Rioja is the one of the DO Rioja – since Rioja represents the only PDO of the region. It manages the PDO at all scales: wine growers, wineries, cooperatives, etc. its main objective is to ensure the quality of the products that are included in the denomination, so that producers and production processes adhere to a series of standards that maximize the quality of this.

At regional level, Interprofessional Organization of Rioja Wine and the Regulatory Council DOCa Rioja must represent, in their territorial scope and in their sector, at least 51% of the productions affected in each and every one of the professional branches. The interbranch has two different branches: the production of wine grapes and the elaboration of wine. They have an important role in promotional activities, the improvement of the wine in the value chain, studies and programs of research activities, development and technological innovation.

In addition, the PDO “Rioja” managing organization is the control body of the PDO “Rioja” and is entrusted with the mission of delimiting the production area of Rioja, controlling the issuance of "guarantee seals" and recommend the legal measures to be adopted against usurpers and counterfeiters of the Rioja brand ». The PDO managing organization is also in charge of ensuring the smooth execution of the certification procedures.

As displayed in the Figure 8 below, the wine production is distributed among thefollowing stakeholders : wineries at 63%, then cooperatives with a share of the total production of 34%, then some wine growers are producing themselves the wine (2% of total production), finally the wholesalers with 1% of the total production. The wineries dominate the wine production the region.

Figure 8: distribution of the PDO Rioja wine production between actors in la Rioja

Source: Consejo regulador Rioja, 2017

Wholesalers 1%

Wine growers 2%

Cooperatives 34%

Wineries 63%



2. THEME 1: NATIONAL SUPPORT PROGRAMMES

2.1 Description of the implementation

2.1.1 Financial allocation

On the 2014-2020 programming period, Spain has implemented for measures at national level: Restructuration and reconversion, Investments in enterprises, Promotion and by-product distillation

Figure 9: Distribution of expenditures from 2014 to 2017 per measures

Source: Financial monitoring data of the NSP, DG Agri

In Spain, only the Innovation measure is implemented at national level. For the other measures, the competent authority is the competent body of the autonomous community, for the processing, resolution and payment of the aids referred to the Royal Decree 597/2016. A national basis is defined (criteria, eligibility) and each autonomous community can adapt the punctuation according to his local context. In addition, the total budget of Spain is a sum of the proposals of the autonomous communities and of an arbitration with national criteria.

As detailed in Table 6, Spain executed the previous expenditure in 2015 and 2016 and executed 91% on 2014 and 96% on 2017.

The expenditure of promotion measure increase between 2014 and 2017, whereas the expenditure of restructuration and reconversion measure decrease.

The expenditure of innovation measure concern only 2016 and 2017. Lastly, the By-product distillation measure have a quite stable expenditure and Investments measure, with a low start in 2014

Table 4: NSP annual financial allocation programmed and expenditure at national level (Millions of euro)

2017 2016 2015 2014

progr. exp. progr. exp. progr. exp. progr. exp.

Promotion 50.00 41.62 50.00 49.65 44.00 44.35 50.00 39.44

Restructuration reconv. 72.53 77.36 72.53 74.93 80.08 80.32 120.02 112.49

Investments in enterprises 55.88 51.15 56.97 55.29 56.00 57.96 8.51 9.37

By-product distillation 31.80 31.71 30.80 30.39 30.25 29.40 31.8 30.41

Innovation 0.12 0.04 0.03 0.01

Source ; Ministerio de Agricultura y Pesca, Alimentacion y Medioambiente,

Promotion 15%

Restructuration and reconversion

38%

Investments in enterprises

37%

By-product distillation

10%

Distribution of expenditures from 2014 to 2017 per measures



Table 5:Output indicators cumulated on the 2014/2017 period

Measure Number of beneficiaries

Number of operations

Total area covered (ha)

Budget 2014-2018 (in M€)

Execution 2014-2017 (in M€)

Promotion 1938 3177 171,045 164,5401311

Restructuration and reconversion

33719 56 95218,67 428,915 430,550101

Green harvesting 0 0 0 0

Investments in enterprises

0 0 411 401,7837573

By-product distillation 77 0 111 125,3033727

Innovation 5 5 0 0

Source ; Ministerio de Agricultura y Pesca, Alimentacion y Medioambiente,

2.1.2 Restructuration and reconversion measure

Restructuration and reconversion measure is implemented at regional level, with an annual call of proposal. The assignation of expenditure for each autonomous community is decided at national level annually: each autonomous community communicate to central administration his financial needs for the next year. This allocation will be made taking into account, in any case, the area of vineyard and the need to restructure certain vineyards as a result of the failure to adapt their productions to the market.

In addition, a prioritization criterion for collective plan is defined at national level and additional criteria may be established by the autonomous community. Castilla-la-Mancha choose to establish some prioritization criteria concerning wine grower in the period 2014-2016 and additional one for the period 2017-2018, which are detailed in Table 7

Table 6: Implementation choices on the restructuration and reconversion measure

Type of operation n°1

Type of aid and rate of support

Compensation for loss of incomes

The compensation to the winegrowers for losses of income will be 25% of the average value of the grape of the last three seasons of the region.

Contribution to the costs of restructuring and conversion: max 50% on the basis of actual costs or on standard costs detailed in Annex 2: Standards costs for eligible operations of Restructuration and reconversion measure

Beneficiaries

At national level:

Aid may be granted for the restructuring and conversion of vineyards, vine-growers whose vineyards are intended for the production of grapes for wine-making.

Those who contravene the current regulations on vineyard plantations, for any of the vineyard areas of their farm, may not be beneficiaries.

Eligibility

Actions supported:

- support for the varietal reconversion of the vineyard by grafting, i.e. the change of wine grape variety by grafting and therefore without the possibility of modifying the number of vines in the plot

- support to the transformation from gobelet trained vines to trellis trained vines.

- support for restructuring a vineyard. The restructuring of the vineyard shall be understood as the operations necessary to substitute one or more viticultural parcels for another vineyard parcel in equivalent areas and that incorporate a varietal improvement and / or an improvement in the cultivation system, in the driving system, in the location of the viticultural plot or in the reduction of the number of plots. In addition to the aid derived from the realization of the plantation, grants may be requested for any of the following complementary actions to the plantation:

Grubbing up of vines

Protection of young vines

The trellis system

Actions not supported:

a. The normal renovation of the vineyards that have reached the end of their natural life, i.e. the replanting of the same plot with the same variety of vine and according to the same system of driving the vineyard. However, it will not be considered as a nominal renewal if what is intended is to move from a plantation framework without the possibility of mechanization to a plantation framework that allows the use of




machinery between the rows of vines.

b. The areas that have benefited from the support in the last 10 years, except for the change of goblet trained vines to trellis trained vines. Therefore, those parcels that were planted or reconverted under the previous restructuring and reconversion programs will be expressly excluded

c. The renewal of the vineyards that have been planted under a concession of new plantations until ten campaigns from that plantation. Therefore, these parcels can not be included, having been planted as a vineyard by a new plantation concession, they wish to be restructured by start-up and plantation, and they will be able, nevertheless, to avail themselves of the aid for the transformation of a glass to a trellis. d. The vineyards whose applicants or whose owners do not have registered all the plots of their farms.

e. The operations of daily management of a vineyard.

Area per plot and per winegrower

at least 0.5 hectares according to the criteria for editing the vineyard register. However, if the number of plots after the completion of the restructuring and conversion plan is less than 80% of the number of initial plots, the final area of the plot once restructured or reconverted will be at least 0.30 hectares.

The maximum limit of the area to be restructured or reconverted by wine grower and year will be 25 hectares.

Grapevine variety authorized

See Figure 13

Source: Royal decree 597/2016 and Regional Order 2/2015 of January 19, of the Ministry of Agriculture, Livestock and Environment, by which rules are issued for the application and approval of plans for the restructuring and / or reconversion

of the vineyard and for the application and processing of the aid in the framework of these plans in the Autonomous Community of La Rioja

2.1.3 Investments in enterprises

All approved applications concerning Investments measure are from the first and second call in 2014 and 2015 and all have been submitted to the competent authorities before January 31, 2015. Since they have covered all the provision for the measure from 2014 to 2018, no other call has been opened.

Table 7: Implementation choices on the investments measure



Capital grant, maximum 50 % of eligible costs for micro and SME, 25% for companies with less than 750 employees and a turnover < 200 million euro; 19% for companies with more than 750 employees and a turnover > 200 million euro.

Maximum expenditure eligible for support 1.500.000 by applicant and minimum 50.000 euro. In the case of projects that involve also construction, modernization and / or improvement of the bottling line, the total amount of the project can be raised up to a maximum of € 2.500.000.00. Individuals and legal entities holding companies with less than 750 employees or whose turnover is less than 200 million euros, which meet the same production and marketing requirements mentioned in the previous paragraph. In the case of these intermediate companies, the maximum aid intensity will be reduced by half.

Beneficiaries The companies that carry out activities of transformation or commercialization of wine products or both activities simultaneously may be beneficiaries of the investment measure.

Eligibility and selection criteria

Maximum term of financing = 4 years (pluriannual project are eligible)

In the case where the total area requested, or the estimated volume of wine exceeds the estimates set by the Ministry of Agriculture Food and Environment referred to in Article 80, priority will be given to applications that involve a greater potential withdrawal of wine, and within them to those that come from exploitations of shared ownership in accordance with Law 35/2011, of October 4.

Selection criteria

Characteristics of the applicant:

1.1 Small and medium enterprises :

1.2 Woman or young farmer:

1.3 SAT or Cooperative under 150 members:

1.4 Cooperativa greater than 150 partners:

1.5 Cooperativa de 1.o grado greater than 250 partners and resulting from a merger processing the last two years prior to the request:

1.6 Cooperativa host to the Order APA / 180/2008, of January 22:

5 points

2 points

3 points

4 points

5 points

6 points

25 points




1. Subtotal :

2. Quality and effectiveness of the project:

2.1 At least 50% of the cost of the investment is made with own funds

2.2 The applicant belongs to a PDO / PGI or other recognized quality figure

2.3 Investment project for the transformation and commercialization of the own production of the applicant

2.4 Creation of net employment with respect to the average of the previous 3 years

2.5 Level of training and professionalization (incorporation of oenologist or technician equivalent)

2.6 The applicant has a quality assurance certification (BRC, IFS, ISO 9000) or environmental

2. Subtotal

3. Characteristics of the projetc

3.1 The wine maker maintains a contractual link with wine growers.

3.2 The investment is made in insular territory

3.3 International implementation and export experience

3.4 Structure and own technical capacity for the execution of the project

3.5 The investment involves the transfer of facilities from urban to industrial areas

3. Subtotal

4. Commercial response capacity:

4.1 Availability of distribution in the destination market

4.2 Reach at least 10 percent of export over total billing of

sales during the period of durability of the investment

4.3 Increase at least 10 percent of the volume of sales in bottled products during the period of durability of the investment

4. Subtotal

Total

5. Corrective indices (apply to the total):

5.1 If the project includes production, transformation and commercialization

5.2 if the project is aimed at international marketing

5 points

5 points

10 points

5 points

2 points

3 points

30 points

5 points

3 points

5 points

5 points

7 points

25 points

5 points

5 points

10 points

20 points

100 points

Total × 1.10

Total × 1.20

Implementation period 2014-2018

Information regarding the management of the measure

Regional Ministry of Agriculture and Rural Development

Source: Royal Decree 548/2013, of 19 July, for the application of the 2014-2018 support program measures to the Spanish wine sector

2.1.4 Promotion

Spain hasn’t activated the information operation.

Promotion projects on third countries may include the following operations:

Public relations, promotion and advertisement to highlight in particular the advantages of EU products in terms of quality, food safety and respect for the environment.

Activities: Commercial missions, advertising campaigns of diverse nature (TV, radio, press, events, etc.)., promotions at points of sale, web portals for outdoor promotion, reverse trade missions, information offices, press office, product presentations

Participation in fairs and exhibitions of international importance.

Activities: Fairs and international exhibitions, etc., Sectorial or general, for professional and consumers.

Information campaigns, in particular on the EU systems of designation of origin, geographical indications and organic production.



Activities: Business meetings. Conferences, seminars, tastings, tastings, etc.

Studies of new markets, necessary for the search of new commercial outlets.

Activities: Studies and market reports.

Evaluation of the results of promotion and information measures

Activities: Evaluation studies of the results of the promotion measures, audits of execution of measures and expenses of operations

Table 8: Implementation choices on the Promotion measure



The financial participation of the Union in the selected programs may not exceed 50% of the eligible costs. In two- or three-year programs, this maximum limit is considered for each year of execution.

The maximum support rate of 50% of the eligible costs will only be granted when the degree of execution of the budget reaches at least 70%.

Duration of support

For each programming period, the programs may have a maximum duration of three years for a specific beneficiary in a third country or region of a third country. However, if the effects of the program justify it, it may be extended once for a maximum of two years, or twice for a maximum of one year each extension, upon request.

Beneficiaries

Wine companies

Wine producer organisations, associations of wine producers - including temporary business ones that are representative of the sector, wine inter-branch organisations

Public bodies with legally established competence to develop actions to promote Spanish wines in markets of third countries.

Eligibility and selection criteria

Products eligible: Wine products under PDO or PGI and Varietal wine

- The actions and programs will be clearly defined, specifying the third country or countries or regions of the third country or countries to which they are directed, the types of wines included, the actions and activities that are intended to be carried out and the estimated costs of each one of them.

- The shares will be distributed in periods of twelve months, which will begin on June 1 of each year.

- The messages will be based on the intrinsic qualities of the product and must comply with the regulations applicable in the third countries where they are intended to be sold.

- In the case of wines that have a geographical indication, the origin of the product should be specified as part of the information and promotion actions or programs.

- References to trademarks, where appropriate, may form part of the message.

- A collegiate body may establish annual guidelines to promote consistency and effectiveness of the measure on information and promotion campaigns, which shall be regulated by the provisions of this section.

Implementation period 2014-2018, with one call a year

Source : Royal Decree 597/2016

2.1.5 Innovation

Table 9: Implementation choices on the Innovation measure


In order to improve the commercialization and competitiveness of wine products, support will be given to tangible or intangible investments for the development of new products, procedures and technologies related to the products described in Annex VII Part II of Reg (EU) 1308/2013 and that have occurred in Spanish territory.

Beneficiaries

- wine companies that, at the time of application, produce or market the products mentioned in Annex VII, Part II of Reg (EU) 1308/2013 organizations of wine producers, recognized in accordance with Article 152 of said Regulation, and the temporary or permanent associations of two or more producers of the products mentioned in Annex VII Part II of the said Regulation.

- However, in the case of companies whose activity is only commercialization, at least 80% of their turnover for the last financial year must come from the commercialization of the products of mentioned in Annex VII Part II of the said Regulation.

- In the temporary or permanent associations of two or more producers, a representative of the group will be appointed. The representative of the group must have sufficient powers to be able to fulfill the obligations that correspond to the aforementioned group as beneficiary of the aid, as established in article 11.3 of Law 38/2003, of November 17.

The projects may involve the participation of research and development centers.



The interprofessional organizations may be associated with the projects.

Applicants who are in any of the following circumstances may not be beneficiaries of the support:

When in a crisis, as defined in the Guidelines on State aid for rescuing and restructuring non-financial companies in crisis (Communication 2014 / C 249/01, of the Commission, of July 31, 2014).

When they are in the process of requesting the voluntary bankruptcy declaration, have been declared insolvent in any proceeding, be declared in bankruptcy, unless in it has acquired the effectiveness of an agreement, be subject to judicial intervention or have been disqualified under the Law 22/2003, of July 9, without having concluded the period of disqualification set in the sentence of qualification of the contest.

When they do not prove that you are up to date with your tax obligations and with Social Security, as well as your obligations for the reimbursement of subsidies.

When they have received subsidies for the same purpose and object, that could be established by other public administrations or other public or private entities, national or international.

Eligibility

Eligible criteria:

a) The projects and their underlying shares are clearly defined, investment actions described and the estimated cost are mentioned.

b) Guarantees that the costs of the proposed operation do not exceed normal market prices. The expenses eligible for assistance presented with a request for assistance must meet the following criteria of cost moderation: in general, the applicant must provide at least three offers from different suppliers, prior to the provision of the service or delivery of the goods , when the amount of eligible expenditure, excluding VAT or IGIC equals or exceeds 18,000 euros except when, due to their special characteristics, there are not enough market offers on the market. The choice between the bids submitted, which must also be submitted together with the request for payment, will be made according to criteria of efficiency and economy, the election must be expressly justified when the most advantageous economic proposal is not chosen.

c) Guarantees that the beneficiaries have access to sufficient technical and financial resources to guarantee the effective execution of the project. The projects for which support is requested will receive tangible or intangible investments, including the transfer of knowledge, for the development of:

=> New products related to the wine sector or by-products of wine.

=> New procedures and technologies necessary for the development of wine products.

=> Other investments in new procedures and technologies that add value at any stage of the supply chain.

Eligible costs will include pilot projects, preparatory actions in the form of development and testing of designs, products, processes or technologies, as well as tangible or intangible investments related to them, before the commercial use of the new products, processes or technologies developed.

The following costs would be considered eligible:

- Personnel costs, as long as they occur during the preparation, execution, evaluation or monitoring of the subsidized project. These include, among others, the costs of the personnel hired by the beneficiary specifically for the project as well as the costs corresponding to the proportion of the work hours invested in the project by the permanent staff of the beneficiary.

- For justifying the personnel costs, the beneficiary must provide supporting documents that show the details of the work actually performed in relation to the project.

Characteristics of the projects

The projects must demonstrate that a previously obtained discovery is applied through research and that this improves the products, procedures or technologies used by the applicant or that value is added at any stage of the supply chain.

The projects must have clearly defined the final objective, which cannot be altered by modification as established in article 67 and must be fulfilled in order to be entitled to the aid as established in article 70.

The innovation projects will be clearly defined, specifying the actions and detailing the expenditure concepts that make up each action and the estimated costs of each of them.

Projects may be annual or multi-year, but the resolution of concession may only collect actions to be justified before the competent administration in the EAGGF 2018 exercise.

Implementation period

2016-2018, with one call a year

Source: Royal Decree 597/2016



2.2 Effects on the NSP at the level of growers

2.2.1 Information on the implementation of the restructuring and conversion

measure

Data on restructured and converted areas with and without PDO/PGI aren’t available in La Rioja. In La Rioja, more than 99% of winegrowers have their vineyard registered under the PDO “Rioja”. Only 0.45% of the vineyard (i.e. 185,2 ha) was registered under PGI “Valles de Sadacia” in 2017. No data is available on the area under vines outside PDO/PGI. It was mentioned by local stakeholders that the wine without PDO/PGI in La Rioja was produced from vineyards registered inside the PDO/PGI but with grapes that weren’t reaching the quality required to produce PDO wine.

According the national statistics of February 2017, almost 99% of the beneficiaries have participated in collective plans. They have also participated in individual plans in the autonomous communities of Andalucía, Baleares, Castilla y León, Madrid, País Vasco and Valencia. In La Rioja, they only participated in collective plan. The number of beneficiaries in La Rioja is 1,019 of winegrowers in 2016, representing 12.6% of the total number of beneficiaries for the same year.

In 2016, La Rioja represents the fourth autonomous Community to use the most budget under the restructuring and conversion measure. This measure worked pretty well in La Rioja, representing 7.7% of the total budget spent in Spain in 2016 under this measure.

Figure 10. Restructuring and reconversion measure in Spain and per Autonomous Communities for the last programming periods (2001-2008; 2009-2013; 2013-2016, two years missing)

Source: Gobierno de la Rioja and FEGA

In terms of vineyard cultivated, the area under vines affected by the restructuring/conversion measure represents 1,105 hectares, i.e. 2.5% of the total area under vines dedicated to wine production.

Figure 11. Area under vines for wine production in 2017, in hectares

Autonomous Community

Total In production

Monocropping Mixed crops



Autonomous Community

Total In production

Dry vineyards

Irrigated vineyards

Total Dry vineyards

Irrigated vineyards

Total Dry Irrigated

LA RIOJA 32 768 14 108 46 876 30 810 13 356 44 166 – –

Source: Ministry of Agriculture, Agro-industry and Environment (MAPAMA), 6

As highlighted in the table below, the first activity supported under the restructuring/conversion measure was replanting vineyards. The following operations can be supported under the replanting activity:

Grubbing-up old vines Preparing the land: disinfecting, removing rocks from the soil, terrassing, land levelling Vines planting Trellising / Tying-up vines

As highlighted below, in La Rioja, 98.1% of the budget is allocated to replanting activity. To be more precise, 54.1% of the budget spent under the measure was allocated to planting, while 26.4% of the budget was allocated to Trellising/Tying up vines. In the end, 80.5% of the budget in La Rioja was used for planting and trellising.

Area under vines that benefited from restructuring support:

It was explicitly stated by regional authorities that it was impossible to determine the area under vines benefiting from the restructuring measure.

6 http://www.mapama.gob.es/es/estadistica/temas/estadisticas-agrarias/agricultura/superficies-producciones-anuales-

cultivos/

http://www.mapama.gob.es/es/estadistica/temas/estadisticas-agrarias/agricultura/superficies-producciones-anuales-cultivos/http://www.mapama.gob.es/es/estadistica/temas/estadisticas-agrarias/agricultura/superficies-producciones-anuales-cultivos/



In La Rioja, almost all of the area under vines is eligible for PDO production and follow the PDO specifications. It is only once the grape production is entering the winery/cooperative, that the selection of grapes for PDO / PGI / varietal / non-varietal wine is performed.

The restructuring measure is usually used to modernize the crop management system grubbing old gobelet trained vines and planting trellis trained vines.

2.2.2 Information from the literature

The table below shows the executed budget per measure under the National Support Programme, over the 2014-2016 period.

Figure 12: NSP executed budget (.000€) 2014-2016 period

From the left to the right: Restructuring and reconversion; Promotion; Investment; By-product distillation; Innovation measures.

Source: Annex III, Implementation Report of NSP

According to the NSP implementation report, the area and budget executed have been respectively reduced by 33.36% and 28.85% from 2014 to 2016. During these first three years of the period, the number of beneficiaries of the restructuring and reconversion of vineyards measure has been increasing from 2014 to 2015 and decreasing from 2015 to 2016. It was noted that the number of beneficiaries of restructuring measure per year is greater than for the previous five-year period (2010 and 2011), which had a level of funds executed equivalent to the years 2014 to 2016. Therefore, it was concluded that the objective of maintaining the interest of wine growers to continue in the sector has been met.

Finally, it is considered that the objective of increasing the competitiveness and profitability of the vineyard has been fulfilled, since 99% of the surface area executed has been affected by the re-implantation activities (83.15%) or improvement of vineyard management (16.22%). Over the 2014-2016 period, an increase in plantations with varieties apparently more demanded by consumers has been observed: Tempranillo (+52,3), Macabeo (+ 37.17%), and Verdejo (286%) while the percentage of varieties cultivated for their productivity or better adaptation to the environment have been reduced, such as Bobal (-94.5 %) or Airén (-41%).

2.2.3 Synthesis of the interviews

IQ 1.1 To what extent did the restructuring and conversion operations supported by the NSP impact the production potential of vineyards, in terms of quantity? In terms of quality? at the level of the region / of the Member State?

At regional level,

The Regional public Authority (Gobierno de la Rioja) stated that the restructuring and conversion measure has been almost exclusively used for replanting activities. The beneficiaries used the measure to grub-up old vines and replant new vines on trellis structure in order to mechanize the crop management system. In order to benefit from the measure, the winegrower had to reduce its surface area dedicated to vines in order to



encourage winegrowers to group their fragmented parcels dedicated to vines. However, this last objective of grouping vineyards was considered as a mistake from the winegrowers’ union’s point of view and had a direct negative impact on the quality of wine produced.

Indeed, Winegrowers/wineproducers Union specifically mentioned that the measure did not foster the improvement of the quality of wine produced. On the contrary most of the beneficiaries of the measure used the measure to replant vines in other locations less appropriate to produce good quality wine. For example, it was reported the tendency to grub up vines located on slopes where mechanization is complicated to replant in alluvial plains where modernization of the cropping system and use of irrigation are possible. However, it was stated that the best grapes to produce quality wine are cultivated on the hills / mountains slopes where the vine is subject to stress, and not on alluvial fertile plains. Thus, in a way, the restructuring measure encouraged winegrowers to relocate their parcels in zones of poorer quality for wine grape cultivation but with greater potential in term of quantity produced. According to the winegrowers union, 70% of the total area under vines were of old quality wine in 200 while now 70% of the area under vines are relocated in alluvial plains producing wine of lesser quality. This opinion was shared by the Union representing the small winegrowers/producers in the region. They specifically stated that no budget should be allocated to this kind of measure going against a production of quality and that the budget should on the contrary be allocated to projects to preserve these old grubbed-up vines producing wine grapes of great quality.

IQ 1.2 Did the NSP measures intend to support changes in the vineyard management practices or foster specific practices (i.e. organic agriculture, low mechanised systems, etc.)?

At regional level

There was a clear intention of public authority to change the cropping management system from goblet trained vines to trellis trained vines in order to modernize the cropping system and be more competitive and foster mechanized activities. There was also an intention of grouping the parcels of vines in order to surface area used by winegrowers, i.e. improve efficiency.

It was stated by winegrowers’ union that NSP measures during the programming period 2014-2020 did not encourage to produce organic wine or low mechanised systems. The NSP did not focus on eco-friendly practises. However, it was mentioned that a new Real decree (or regional law?) published this year, in 2018, indicate a change in the selection process of the beneficiaries of the restructuring and investment measure. The criteria of priorization have been changed and new criteria promoting traditional will be introduced in the new programming period 2019-2023. They added that organic agriculture and low mechanised systems are encouraged via the Rural Development Programme and not via the NSP.

IQ 1.3 To what extent did the NSP resulted in changes in the management practices of vineyards? Which practices were introduced/abandoned? Did those changes have an impact at national or regional level (e.g. acting as role model)?

At regional level

As described above, the measure resulted in changes in the management practices of vineyards. According to national statistics on restructuring measure, in La Rioja, 98% of the budget was allocated to replanting activity of and 26% was specifically allocated to structuring the vineyard with trellis system allowing a mechanization of the cropping system. Thus, mechanized harvest was introduced and other mechanized practises could have been performed such as application of phytosanitary product and fertilizers.

The restructuring measure encouraged winegrowers to group their parcels with the compulsory requirement of reducing the total surface of vineyard per winegrowers. However, the winegrowers’ union specified that even if the surface area decreased, the production of wine increased due to the relocation of the production in zones where the yield could be easily increased without reaching the PDO threshold thanks to different climate and soil conditions and improvement of crop management system. Moreover, these zones, as stated above, are mainly alluvial lands, where it is possible to implement an irrigation system. Thus, one indirect effect of the measure was the implementation of irrigation system in vineyards leading to a greater use of water resource in vineyards.



IQ.1.4 Have the NSP measures impacted the costs of production?

The costs of productions gather two types of costs:

Cost of production relating to crop management system

According to the winegrowers union, the costs of production have decreased thanks to the restructuring measure. They stated that all winegrowers benefiting from the measure had seen a reduction of their costs of production of about 2-3%. The mechanized parcels allowed a more effective phytosanitary treatment of the vines. The mechanized harvest allowed to save money.

Cost of production relating to winemaking

According to the winery owners and cooperatives, the investment measure did not induce a reduction of the production costs. They took the measure as an opportunity to improve their production in term of quality.

Expert’s point of view: The restructuring measure encouraged the mechanization of the cropping system, and thus allowed a mechanized harvest and other mechanized practises that led to a reduction in the cost of production.

IQ.1.5 Have the NSP measures resulted in a better adaptation of the vineyards structure and management practices to market demands? E.g. in terms of variety, quality

At regional level

According to regional authorities, the restructuring measure has been a great success in La Rioja, allowing wine growers to regroup their areas under vine and improve their cropping sy