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Ex-Post Evaluation of the Common Market

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Ex-Post Evaluation of the Common Market Ex-post evaluation of the Common Market Organisation for wine Annex Prepared for: European Commission - DG Agriculture Tender AGRI / EVALUATION / 2002 / 6 This study has been financed by the Commission of the European Communities. The conclusions, recommendations and opinions presented in this report reflect the opinion of the consultant and do not necessarily reflect the opinion of the Commission. Innova SpA Via della Scrofa 117 00186 Rome Italy Tel. +39 06 68803253 Fax +39 06 68806997 Tender AGRI/EVALUATION/2002/6 Final Report- Annex CONSORTIUM INNOVA SpA (Italy) – Coordinator Mr Aleardo Furlani, Ms Rebeca Lucas, Ms Valentina Gentile EUROQUALITY (France) Mr Olivier Chartier, Mr Marc Ponsar Fundación para el Desarollo de la Ciencia y Tteconología en Extremadura (FUNDECYT) (Spain) Mr Carlos Cabo, Ms Manon van Leeuwen FORSCHUNGSANSTALT GEISENHEIM (Germany) Dr Dieter Hoffmann, Dr Karl-Heinz Bock, Dr Jana Seidemann SPI SA (Portugal) Mr Pedro Vieira, Mr Douglas Thompson PHYTOWELT GMBH (Germany) Mr Peter Welters HTTC (Greece) Mr Kyriakos Loukakis Mr JOHN MALCOLM – Consultant (UK) Internal Page 2 / 479 Tender AGRI/EVALUATION/2002/6 Final Report- Annex TABLE OF CONTENTS 2. INTRODUCTION .......................................................................................... 21 3. ANNEX TO CHAPTER 2 (OVERVIEW OF THE WINE MARKET) .... 21 3.1. The wine market – overview of key developments .......................................................................21 3.2. Market situation: macro-economic trends with special focus on table wine markets...............25 3.3. Short description of the wine sector in each country: the systems for processing grapes and marketing wine .......................................................................................................................................36 3.3.1. FRANCE ....................................................................................................................................36 3.3.2. GERMANY................................................................................................................................39 3.3.3. ITALY........................................................................................................................................41 3.3.4. GREECE ....................................................................................................................................50 3.3.5. SPAIN ........................................................................................................................................52 3.3.6. PORTUGAL...............................................................................................................................60 3.3.7. UNITED KINGDOM.................................................................................................................64 4. ANNEX TO CHAPTER 3 (THE COMMON MARKET ORGANISATION FOR WINE) ................................................................................................................ 66 4.1. Basic principles and historical background of the old CMO.......................................................66 4.2. Short description of important rules of the new CMO not in focus of this evaluation..............68 4.2.1. Organisation Rules in the new CMO..........................................................................................68 4.2.2. Producer - and sectoral organisations.........................................................................................69 4.3. Detailed description of the instruments in focus of this evaluation.............................................70 4.3.1. Planting rights, restructuring and conversion .............................................................................70 4.3.2. Distillation..................................................................................................................................77 4.3.3. Private storage............................................................................................................................85 4.3.4. Regulatory measures and aids for specific uses .........................................................................95 4.3.5. Measures concerning trade with third countries.......................................................................100 4.4. Market equilibrium: the problem of quantification...................................................................105 4.4.1. Review of indicators and calculations used to identify and quantify the surplus .....................105 4.4.2. Implementation – calculation of some indicators.....................................................................107 4.4.3. Quantification of the surplus at EU level .................................................................................108 5. ANNEX TO CHAPTER 4 (PLANTING RIGHTS) .................................. 143 5.1. Structuring of the questions .........................................................................................................143 5.1.1. Sub-question 1 market equilibrium ..........................................................................................143 5.1.2. Understanding ..........................................................................................................................143 5.1.3. Judgement criteria and Indicators.............................................................................................143 5.1.4. Sub-question 2 prices ...............................................................................................................144 5.1.5. Understanding ..........................................................................................................................144 5.1.6. Judgement criteria ....................................................................................................................144 5.1.7. Indicators..................................................................................................................................145 Internal Page 3 / 479 Tender AGRI/EVALUATION/2002/6 Final Report- Annex 5.1.8. Sources .....................................................................................................................................145 5.1.9. Sub-question 3 market requirements ........................................................................................145 5.1.10. Understanding ........................................................................................................................145 5.1.11. Judgement criteria and Indicators...........................................................................................146 5.1.12. Sub-question 4 production cost ..............................................................................................146 5.1.13. Understanding ........................................................................................................................146 5.1.14. Judgement criteria and Indicators...........................................................................................147 5.1.15. Sources ...................................................................................................................................147 5.2. Implementation of the planting right measures..........................................................................147 5.2.1. Recall of the main principles....................................................................................................147 5.2.2. Implementation of the measure in the Member States .............................................................148 5.3. Evolution of the area .....................................................................................................................150 5.3.1. Description of the evolution of the vineyard area.....................................................................150 5.3.2. Analysis of the area evolution: Impact of the CMO instruments influencing vineyard area....160 5.4. Area and production: the influence of yield................................................................................163 5.5. Planting rights and market equilibrium......................................................................................170 5.6. Influence of the Premium for permanent abandonment on the surplus ..................................184 5.6.1. Analysis of abandonment premium for FRANCE....................................................................186 5.7. Area and prices..............................................................................................................................189 6. ANNEX TO CHAPTER 5 (DISTILLATION)........................................... 199 6.1. Introduction ...................................................................................................................................199 6.2. Results of the analysis ...................................................................................................................200 6.2.1. Overview about importance of wine distillation measures in the Member States....................200 6.2.2. Empirical evidence concerning the use of table wine distillation measures in different market situations ............................................................................................................................................216 6.2.3. Impact on market prices ...........................................................................................................216 6.2.4. Impact
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