Raising the glass for wine production

Raising the glass for wine productionThe Spanish government has approved the application for a support programme for the wine sector of more than 1,000 million euros. Among other benefits, this will assist the restructuring and conversion of vineyards.

Within this programme, interested member states must present a five-year support plan containing some of the measures the funds will be used for.

With more than 950,000 hectares, Spain has the largest area of ​​vineyards in the world and the programme, which will go from 2019 to 2023 and be financed by the EU, will allow those involved in wine production to apply for grants. As well as the operations mentioned above, these could also cover the distillation of by-products and investments.

Up and up

At the end of the January meeting of the Council of Ministers to discuss the issue and to give it the application the go ahead, Íñigo Méndez de Vigo, government spokesman for the minister of education, stressed that the application of this program would help give Spanish vineyards the importance they deserve.

He said it would see continued support of the improvement of the competitiveness of the Spanish wine sector through the reinforcement of its productive structures, and investments to increase competitiveness. He also said it would also lead to a transformation of the sector which would improve its positioning in markets while increasing the promotion and export capacity of the products.

Future planning

With the support programme for the 2014-2018 period due to end on October 15, 2018, in July of last year, Spain presented a new programme for the application of admissible measures. This would go a long way to covering the country’s needs in the sector for the next five years, including the restructure of around 100,000 hectares.

The annual budget is 210.3 million euros and is distributed in the following ways; 72.5 million euros for the restructuring and reconversion of vineyards, 56 million euros for investments, 50 million euros for international promotion, and 31.8 million euros for the distillation of by-products.

It is thought that all this will result in the annual exports of Spanish wine to reach around 2,700 million euros.

The ministry of agriculture and fisheries, food and environment has set the number of hectares that can be authorized for new vineyard plantations in 2018 at 4,950. If this number is reached, it will represent a growth rate of 0.52 per cent, the same as last year.

For more information, please contact corporate law firm Argali Abogados

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