Italy: Wine with the addition of water is not wine
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Topics: ITALY
"I thank the EU Political Committee of the Senate for this initiative and I greet the President and my fellow senators present.
"is particularly important, since the wine sector is one of the most relevant and dynamic within the Italian agri-food scene and in the negotiations for the new CAP.
"As President Stefano has explained, everyone is free to produce what they want but should not call it wine. The one with the addition of water is not wine. This is Italy's position. We are concerned about the position of other countries which, together with us, should vigorously defend the valuable characteristics of European wine production.
""I am thinking in particular of France, which seems to be oriented not to oppose this failure, but I want to talk about this later because I believe that the scope of this adiction is wider and certainly starts from contingency, but it is a welcome opportunity for me to also tell you what is happening in the context of the negotiations on the reform of the CAP, which at the end of the month will see a very important meeting with a two-day Council of the European Union and with a contemporary trialogue in which, in my opinion, we will all have to do everything possible to ensure that the regulations of the new CAP are defined as a whole so as to close the process within the Portuguese Presidency.
"I want to give some data to understand the importance of the wine sector which is certainly one of the most relevant and dynamic within the Italian food scene.
"Our country is the world's leading wine producer and the first exporter by volume, while in value, with the record figure of 2019 of 6.4 billion euros, it is firmly in second place behind France with which we constantly challenge ourselves on volumes and values.
"In addition, wine is the first item in Italy's external agri-food trade. Our country is first in Europe in the number of denomination products, boasting over 500 docg,DOC and IGT wines, which play the role of ambassadors of Italian quality productions within the global market.
"A wine represents the distinctive of our country, our territory, our culture, landscape and history. It is not just a food and wine product and a drink. Wine is something more in Italy.
"In the agri-food sector, the weight of the sector is considerable: 300,000 farms and about 46,000 wine-making companies provide employment for more than 1 million workers, including operators in the vineyard, cellars, marketing and related activities (manufacture of machinery, oenological substances and accessories for oenology).
"A sector that is an economic driver of our country.
"Due to the importance of the sector, the consequences of the pandemic have been significant but with unevenly distributed effects. There have also been different consequences within the wine supply chain.
"The lockdown and closure of catering establishments have penalised, in particular, companies that have specialized in the channel of the Ho.re.ca.
"In terms of product placement, it is estimated that this channel weighs 30% of volumes and 50% of total values, resulting in the loss, in 2020, of 1 billion euros on the domestic market alone. Large amounts, then.
"The sector has been helped but it is certainly a sector that has suffered from the pandemic crisis.
"The forecasts for 2021 are still heavy for the sector, with the consumption of wine outside the home estimated at -32% compared to 2019, due not only to intermittent closures of the shops, but also to a lower purchasing power on the part of the national consumer. Over and above the economic impact on individual households, the crisis has led to a little caution on the part of the consumer, who has preferred to direct his choices to goods other than those of fine wine.
"For these companies the immediate consequence was a sudden loss of liquidity and, more generally, a financial imbalance caused both by the unsold product and by the non-payment for invoices already issued (of which VAT has already been paid): damage on the one hand and a mockery on the other.
"Similarly, wine tourism, valued at 2.5 billion euros, has seen the entire 2020 season and the first quarter of 2021 compromised.
"The reduction of the Ho.re.ca. was only partially offset by sales growth in the Large-Speed Retail Trade (+7.8% in 2020 compared to 2019), where, however, consumer preferences have shifted towards buying non-high-end products, at lower prices.
"As far as international trade is concerned, Italy, after more than a decade of continuous records of sales abroad, has suffered a setback.
"In total, in 2020, Italy exported 20.8 million hectolitres, a reduction of just over 2.4% compared to 2019 for a consideration of 6.285 billion euros, 2.3% less than in 2019.
"Within the world market, our Pese's commitment must be aimed at maintaining leadership in traditional outlet markets (Germany, the United States and Japan) and not slowing down the already difficult commercial penetration of the Chinese market.
"The other unknowns are related to the effects of Brexit (not yet made apparent due to the pandemic) and, more generally, to the loss of purchasing power of the world's middle class due to the recession.
"I will conclude this brief analysis of the economic framework of the sector and point out that the two-year period we are leaving behind will have a significant impact on the structure and organisation of the sector. These aspects will have to be carefully assessed in the context of the current debate on cap reform and how we imagine the agricultural scenario for the near future.
"The negotiation of the new CAP Post-2022 CAP reform is one of the main challenges, alongside the EU Next Generation Plan, on which I have focused institutional engagement since the beginning of my mandate.
"The negotiations that are taking place in recent months are decisive for the future of Italian agriculture and are taking place with a sometimes uncertain flow with some elements still suspended, but with substantial progress towards a final decision.
"We must not forget that the post-2020 CAP will be decisive for the future of all Italian agriculture. The new CAP must be able to provide the agricultural sector with the means to become more competitive on international markets and at the same time continue the ecological transition enshrined in the Green Deal.
"These are therefore two complex challenges.
"We are paying the utmost attention to this negotiation, taking into account the specific weight of this supply chain in the panorama of the Italian agri-food system.
"To this end, work on the package of regulations of the new CAP, and in particular the single CMO scheme that will contain the entire framework covering the wine sector and related products, has been constantly monitored by mipaaf in order to safeguard the interests of the sector.
"The issue that the President mentioned earlier is one of the issues at stake. There are several critical elements in part that we have brought back into the ate of sustainable management with the characteristics of our wine productions.
"The close confrontation between the EU institutions in the field of trilogues and the debate between Member States in the Council of the EU are part of a complex process, also characterised by some attempts to undermine the distinctive features that still distinguish Italian wine in the world.
"There are essentially two guidelines for our Government's action: on the one hand, to maintain a high level of quality of wine production and, on the other, to guarantee producers adequate support, with resources similar to those currently available under the National Support Programme (SNG).
"OCM Vino - National Support Plan (SNSPs) The most important element to be highlighted is that the wine sector will continue to benefit from a common market organisation also in the next CAP programming, included in the framework of the new National Strategic Plan.
"From a financial point of view, Italy has managed to obtain the maintenance of a budget, albeit slightly reduced, in line with the current programming.
"For Italy, in fact, approximately 323 million euros of European funds will be available until 2027 to support the development of the sector.
"Our country thus confirms itself as the first beneficiary of EU funds for the European wine sector.
"The National Support Programme (SNSPs) will thus be able to offer wine growers the tools and resources necessary to improve the competitiveness of their farms in the future, using the relevant Community contributions.
"This is a great result for the wine sector and, given the importance of the sector in the country's economy, for the whole of Italy.
"The confirmation of a dedicated budget, as well as the confirmation of typical support measures are proof of the importance for Italy of "making a system" in order to achieve the objectives we set. We are still working, together with France and Spain, to ensure that, in the transition from the old to the new COM,the flexibility mechanisms necessary to enable producers to complete the planned investments are provided for without interruption.
"I shall now turn to a number of key points which are still the subject of negotiations.
"Planting authorizations Another very important aspect in the CAP negotiations is the regulation of new planting wine permits.
"In this respect, at the initial stage of the negotiations, the Commission accepted a number of Italian proposals linked to the simplification and greater effectiveness of the issue of authorisations and the criteria for priorities that can be used. The last compromise text on the COM also provides for the extension of the authorisation system for the planting of vineyards until 2045 - with 2 mid-term reviews in 2028 and 2040 - confirming the maximum annual increase of 1% in wine-growing potential.
"The agreement also includes our request to be able to reallocate from 1 January 2026 to 31 December 2027 the "old" planting rights not used by winegrowers by December 31, 2025.
"On the emergency front, I would remind you that Italy has managed to obtain an extension until 2021 of the plant authorisations expiring in 2020, taking into account the difficulties related to the pandemic emergency. The continuing crisis situation has led us to request a further one-year extension for authorisations expiring in 2021, which is currently being discussed with the Commission's technical offices.
"Contracted wines Since 2018, the year of presentation by the Commission of the draft regulations for the reform of the CAP, there has been a heated debate on the proposal to introduce a new category of "dealcolate" products, to be used in conjunction with the term "wine".
"On the basis of the Commission's arguments, the inclusion of this provision stems from the need to harmonise an area in which national regulations already exist (e.g. France, Spain, Portugal, Germany), which could lead to unequal treatment between operators and possible obstacles to the free movement of products.
"Italy has always been opposed to this proposal, since deal-making treatments deprive the wine product of most of its organoleptic characteristics and change its composition, compromising, among other things, its link with the territory.
"Furthermore, the final product treated in this way no longer conforms to the definition of "wine", as laid down in the basic Regulation, with the following wording: "product obtained from the alcoholic fermentation of grapes or musts having an alcoholic strength not less than 8,5% by volume".
"The Commission has introduced further specifications, proposing a definition of "partially de-dealcolates" for products with an alcohol content of between 0.5% and 8.5% volume.
"In the same context, the possibility of modifying current oenological practices has been included, introducing the replenishment of lost water into products as a result of the dealculation process.
"This process should not be confused, as has been wrongly reported in some press reports in recent days, with the process of watering down, which, I would remind you, is always prohibited. During the Special Agriculture Committee in April, a compromise was proposed, under which wine can be labelled as "de-contracted" or "partially de-de-contracted" while wines with geographical indications (PDO and PGI) can only use the term "partially de-contracted".
"Italy continues to oppose the use of the term "partially de-contracted" for PDO and PGI wines and I personally also reiterated our Government's opposition to the use of water for the restoration of volumes.
"I am, however, aware of the difficulty of our political battle, because the other large wine producers, and our main competitors, such as Spain and France, have agreed with the reform proposal.
"But I reiterate my commitment to safeguard the quality of italian products of excellence.
"Hybrid varieties Another theme discussed at length in the negotiations of the new CAP is the possibility of using hybrid varieties in wine production.
"The latest text on the COM regulation allows the use of hybrid varieties for the production of PDO wines.
"Also on this side we opposed it because of the negative impact that this regulatory innovation would have on the typicality and quality of our products and on the link with the territory, elements that have always distinguished Italian wine. I would point out that, at national level, these hybrid varieties will not be able to enter the production of a PDO wine, other than as a result of a change in the production specification, and therefore at the request of the producers themselves.
"Also on the subject of hybrid varieties, I would like to point out that Italy has helped to prevent the historically prohibited cultivation of the six varieties of direct producing hybrids (Noah, Othello, Isabelle, Jacquez, Clinton and Herbemont) and vitis labrusca, whose cultivation is now prohibited.
"This cultivation ban is in fact based on important reasons related, not only to organoleptic aspects, but also to health.
"Finally, another extremely important aspect under discussion is the issue of labelling.
"The last compromise text contains compulsory nutrition labelling, with the indication on the label of energy value only and with the possibility of referring to internet links for detailed information on nutritional values and the list of ingredients.
"The latter form of electronic labelling is a simplification functional to the activity of companies and at the same time safeguards transparency towards the consumer, which has always been essential values for the Italian system.
"The sustainability challenge If we talk about future prospects, we cannot omit the issue of ecological transition, which, in addition to being one of the cornerstones of the Green Deal and the Farm to Fork Strategy, strongly characterizes the reform of the CAP.
"I do not want to dwell on the path already taken by the agricultural sector, including the wine sector, in terms of sustainability.
"The last few years have been marked by enormous progress, on important issues such as the reduction of emissions and the spread of more sustainable agricultural practices, to the point of gradually reducing the use of fertilizers and plant protection products.
"Constant progress, supported by technological innovation which, increasingly, finds its place in our farms. The new CAP will support the additional commitments required of farmers, both through the first pillar and through rural development measures.
"We are talking about the so-called 'green architecture', which also includes the rules of enhanced conditionality.
"At European level, important minimum percentages are being set for eco-ecosystems and agri-climatic and environmental measures. On 19 April, as you know, I started the work of the Partnership Table, which is to be the protagonist in the process of implementing cap reform at national level.
"I am sure that the wine supply chain will find ample space in the new Strategic Plan, with measures that will support, once again, the competitiveness of companies, while giving priority to entrepreneurs able to implement the most advanced models in terms of sustainability.
"I will conclude by reiterating my and the Government's firm desire to use all the tools available to our country in order to guarantee one of our most important and known assets, a distinctive sign of Made in Italy in the world.
"The sector, which has already been the subject of specific support measures during the crisis, will continue to do so in the next steps aimed at achieving a lasting revival of the agricultural sector. The wine sector must also be the protagonist of an action to promote quality agri-food both on the internal and international markets, fuelled in a synergistic way by both European and national funds.
"I will keep you constantly updated on developments in the European negotiations and on initiatives taken at national level. I count on your valuable collaboration in order to pursue our common goal of protecting the wine supply chain." ■