Evaluation of the CAP measures applicable to the sector

Case study report: - Norte

Written by Agrosynergie EEIG Agrosynergie November – 2018 Groupement Européen d’Intérêt Economique AGRICULTURE AND RURAL DEVELOPMENT

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

EUROPEAN COMMISSION

Evaluation of the CAP measures applicable to the wine sector Case study report: Portugal - Norte

Directorate-General for Agriculture and Rural Development 2018 EN

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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.

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Luxembourg: Publications Office of the European Union, 2019

Catalogue number: KF-05-18-078-EN-N ISBN: 978-92-79-97274-4 doi: 10.2762/71503

© European Union, 2018 Reproduction is authorised provided the source is acknowledged.

Images © Agrosynergie, 2018

EEIG AGROSYNERGIE is formed by the following companies:

ORÉADE-BRÈCHE Sarl & COGEA S.r.l. 64 Chemin del prat Via Po 102 31320, Auzeville FRANCE 00198 Roma ITALIE Tel. : + 33 5 61 73 62 62 Tel. : + 39 6 853 73 518 Fax : + 33 5 61 73 62 90 Fax : + 39 6 855 78 65 Email: [email protected] Email: [email protected] Represented by: Represented by: Thierry CLEMENT Francesca ANTILICI

This case study was carried out by the following experts from AGRO.GES, Sociedade de Estudos e Projectos, Lda: Pedro Serrano and Ana Frazão

Table of contents

1. DESCRIPTION OF THE WINE SECTOR IN THE NORTE REGION (PORTUGAL) ...... 1 1.1 BACKGROUND INFORMATION ...... 1 1.2 STRUCTURE OF THE SECTOR ...... 5 1.3 STATISTICS AT CASE STUDY LEVEL ...... 7

2. THEME 1: NATIONAL SUPPORT PROGRAMME ...... 11 2.1 DESCRIPTION OF THE IMPLEMENTATION ...... 11 2.2 EFFECTS ON THE NSP AT THE LEVEL OF GROWERS ...... 15 2.3 EFFECTS OF THE NSP AT THE LEVEL OF PRODUCERS AND PRODUCTS ...... 19 2.4 EFFECTS OF THE PROMOTION MEASURE ...... 23 2.5 EFFECTS OF THE INFORMATION MEASURE ...... 28 2.6 EFFICIENCY OF THE MANAGEMENT OF THE NSP ...... 28 2.7 COHERENCE OF THE NSP ...... 35 2.8 RELEVANCE OF THE NSP ...... 40 2.9 EU ADDED VALUE AND SUBSIDIARITY ...... 44

3. THEME 2: SCHEME OF AUTHORISATIONS OF VINE PLANTINGS ...... 46 3.1 SYNTHESIS OF THE LITERATURE ...... 46 3.2 SYNTHESIS OF THE INTERVIEWS ...... 48 3.3 CONCLUSION OF THE EXPERTS ...... 49

4. THEME 3: WINE PRODUCTS DEFINITION, RESTRICTIONS ON OENOLOGICAL PRACTICES AND AUTHORISED WINE VARIETIES ...... 50 4.1 DETAILED DESCRIPTION OF THE IMPLEMENTATION AT MEMBER STATE AND REGIONAL LEVEL ...... 50 4.2 COMPETITIVENESS DISTORTIONS DUE TO SPECIFIC RULES ON OENOLOGICAL PRACTICES ...... 53 4.3 SYNTHESIS OF THE INTERVIEWS ...... 55 4.4 COMMENTS AND CONCLUSIONS OF THE EXPERT ...... 57

5. THEME 4: EU RULES ON LABELLING AND PRESENTATION ...... 58 5.1 DESCRIPTION OF THE LABELLING RULES APPLIED AT MEMBER STATE AND LOCAL LEVEL ...... 58 5.2 EXISTING NATIONAL DATA ON NON-COMPLIANCE WITH LABELLING RULES ...... 58 5.3 SYNTHESIS OF THE INTERVIEWS ...... 59 5.4 COMMENTS AND CONCLUSIONS OF THE EXPERT ...... 61

6. THEME 5: CERTIFICATION PROCEDURES, MONITORING AND CHECKS ...... 64 6.1 DESCRIPTION OF THE LOCAL IMPLEMENTATION OF THE RULES ...... 64 6.2 EXISTING NATIONAL DATA ON NON-COMPLIANCE AND WORKLOAD ...... 69 6.3 SYNTHESIS OF THE INTERVIEWS ...... 70

ANNEXES ...... 72 ANNEX I – LIST OF THE INTERVIEWS ...... 72 ANNEX II – DOCUMENTS AND REPORTS COLLECTED ...... 72 ANNEX III – REGIONAL LABELLING SPECIFICITIES FOR PDO/PGI ...... 73

AGROSYNERGIE – Case study report: Portugal - Norte Evaluation of the impact of the CAP measures applicable to the wine sector i

List of tables Table 1: Wine producers per typology ...... 5 Table 2: areas and production in Portugal ...... 7 Table 3: Vineyard areas and production in Minho ...... 7 Table 4: Vineyard areas in Porto e and Trás-os-Montes ...... 7 Table 5: Vineyard areas and production in Porto e Douro ...... 7 Table 6: Vineyard areas and production in Trás-os-Montes ...... 8 Table 7: Area by variety (ha) in Portugal ...... 8 Table 8: Area by variety (ha) in Minho ...... 8 Table 9: Area by variety (ha) in Porto and Douro ...... 8 Table 10: Area by variety (ha) in Trás-os-Montes ...... 9 Table 11: Number of wine growers in Portugal and Norte ...... 9 Table 12: Planting rights...... 9 Table 13: Industry structure in Portugal ...... 9 Table 14: Industry structure in Minho ...... 9 Table 15: Industry structure in Porto and Douro ...... 10 Table 16: Industry structure in Trás-os-Montes ...... 10 Table 17: Implementation choices on the Promotion in Third Countries measure ...... 11 Table 18: Implementation choices on the Restructuring and Conversion of measure ...... 11 Table 19: Implementation choices on the Insurance measure...... 12 Table 20: Implementation choices on the By-Product Distillation measure ...... 14 Table 21 – Vineyard areas in 2016 ...... 15 Table 22 – Area approved annually under the vineyard Restructuring and Conversion measure ...... 15 Table 23 – Number of beneficiaries approved annually under the vineyard Restructuring and Conversion measure ...... 15 Table 24 - Area by variety in the vineyard Restructuring and Conversion measure (ha) - 2008-2015 ...... 16 Table 25 – Promotion operations by professional organisations and cooperatives ...... 25 Table 26: Rate of achievement of the foreseen expenditures per measures ...... 28 Table 27: Main criteria/procedure(s) ensuring the relevance of the selected applications ...... 29 Table 28: SWOT analysis of the sector (Case study of Norte Region) ...... 40 Table 29 – Applications for planting authorisations in 2016 and 2017 ...... 46 Table 30 – Limits to PDO/PGI authorisations ...... 47 Table 31: Description of main local specificities in oenological practices and authorised varieties...... 50 Table 32: Specificities oenological practices of main competing wines ...... 53 Table 33: Change in competitiveness indicators of between 2008 and 2015 ...... 55 Table 34: Change in competitiveness indicators of wine between 2008 and 2015 ...... 55 Table 35 - Summary diagram for the use of the harvesting year and/or grape varieties indication on the labelling of products without a PDO/PGI ...... 66 Table 36 - Fraudulent Manipulation of Wine 2014-2017 ...... 69 Table 37 - Vineyard Restructuring and Conversion Measure control data ...... 70 Table 38 – Promotion, insurance and distillation control data ...... 70

AGROSYNERGIE – Case study report: Portugal - Norte Evaluation of the impact of the CAP measures applicable to the wine sector ii

List of figures Figure 1 – Portuguese wine regions ...... 1 Fi