Vila Real, Portugal, Sept. 30, 2024 (Lusa) - The Association of Porto Wine Companies (AEVP) described a scenario of structural surplus in the Douro, with operators lacking winemaking and storage capacity, and advocated systematic promotion and voluntary vine abandonment programmes.
The harvest in the Douro Demarcated Region is approaching its final stretch and there are still winegrowers who have no one to sell part of their production to.
The president of the AEVP spoke to the Lusa news agency about the harvest, pointing out that his members expect a year of "very good quality" wines and that there are indications of a reduction in quantity of around 8% to 10%, but that "even so, these volumes are high".
"A good quantity is not necessarily, in the current circumstances, a great sign because the companies still have very high stocks from previous years, both of Port, but above all of Douro wines," said António Filipe, adding that there is “a scenario of structural surplus” in the Douro.
When asked if the companies are trying their hardest to buy grapes from growers, he replied, "Yes, and at various levels". He explained that some don't have the winemaking or storage capacity and that there are physical and technical limits to what they can receive.
On the other hand, he added, "companies are a business, they have thousands of employees in their charge and they have to make the decisions that best protect the business".
"We're facing a scenario of falling sales, rising costs, war and falling sales," he said.
The AEVP said that in Port, the "fall is structural", pointing to a loss of 31% between 2000 and 2023.
It said that there were companies that resorted to "crisis distillation and, with the release of litres in their warehouses, went to buy grapes they didn't need from their farmers so that they could help them this year and say that they'll be here next year and for years to come".
In the Douro, around 10.7 million litres of wine are being sent for distillation.
"I would say that the companies cannot be accused of a lack of responsibility in these circumstances and at this time," he defended.
In his opinion, what is happening to some farmers is dramatic because they have nowhere to deliver their grapes and are letting them stay in the vineyard. "But it's nothing that we haven't alerted the various organisations, especially the government, in good time," he stressed.
As for measures to mitigate the crisis in the sector, António Filipe highlighted the promotion of Douro and Porto wines in a structured, systematic way in programmes with horizons of five or 10 years in emerging markets with growth potential.
"We have to work on the issue of demand and, to this end, the AEVP's position on the inability of the IVDP (Instituto dos Vinhos do Douro e Porto), in its current legal format, to help in this promotion process is well known," he pointed out, advocating the creation of a regional wine commission.
He considered the €100 million credit line, at subsidised interest rates, announced by the government to be a positive measure for national viticulture. However, he said that we should look beyond "one-off actions, such as green harvesting." He also defended the creation of programmes for abandoning vineyards, a voluntary measure that could help adjust supply to current and expected demand in the coming years.
He also said that the AEVP does not believe in distilling brandy in the region to resolve the surplus.
Producer and winegrower associations have advocated using the surplus to produce wine spirit to be incorporated into Porto wine, and the Minister of Agriculture has asked for a study into the legality and economic viability of the measure.
"We are convinced that it will create more problems than it will solve, namely in legality, the impact on the functioning of the markets and the international image for the region," he said.
He also said that the AEVP is available "for dialogue" and "to build a solution".
PLI/ADB // ADB.
Lusa
