COMMISSION OF THE EUROPEAN COMMUNITIES 
COM (89) .138 final 
Brussels, 31 March 1989 
COMMISSION REPORT TO IE COUNCIL 
ON FORESEEABLE TRENDS IN THE PLANTING AND REPLANTING OF VINEYARDS 
IN THE COMMUNITY 
AND ON THE BALANCE OF PRODUCTION AND CONSUMPTION IN THE VINE SECTOR 
(1985/86 and 1986/87) 
REPORT ON FORESEEABLE TRENDS IN THE PLANTING AND REPLANTING OF 
VINEYARDS IN THE COMMUNITY AND ON THE BALANCE OF PRODUCTION 
AND CONSUMPTION IN THE WINE SECTOR 
INTRODUCTION (p. 1) 
PART 1 : AREA UNDER VINES IN THE COMfUNITY 
A. Total Community area under vines 
1* Vines for wine grapes (p. 2) 
2. Other vineyards (p. 7) 
B. Areas under wine-grape vines in the nain producer countries: 
1. Germany : steady (p.8) 
2. France : decline (p.9) 
3. Italy : decline (p. 11) 
4. Luxembourg : steady (p. 13) 
5. Greece : decline (p. 15) 
C. Structural policy (p. 17) 
PART 2 : THE MARKET 
2.1. Production and overall demand for wine in- the Community (p. 26) 
2.1.1. Production (p. 26) 
2.1.2. Demand (p. 29) 
2.2. Community prices and intervention (p. 30) 
2.2.1. Prices (p. 30) 
2.2.2. Community intervention (p. 32) 
2.3. Prospects for wine consumption up to 1993 (p. 36) 
2.4. Conclusion (p. 37) 
- 2 -
PART 3 : INTKA-COMfUNITY TRADE AND EXTERNAL TRADE (p. 39) 
3.1. Intra-Community trade (p. 40) 
3.2. External trade (p. 41) 
3.2.1. Imports (p. 41) 
3.2.2. Exports (p. 42) 
Conclusions (p. 43) 
PART 4 : DISPOSAL OF WINE ALCOHOL (p. 46) 
PART 5 : CONCLUSIONS (p. 49) 
Annexes 
- 1 -
INTRODUCTION 
Under Article 9 of the basic Regulation - Council Regulation (EEC) No 822/87 
of 16 March 1987 (1) - the Member States must report to the Commission 
annually, normally by 1 September, on trends in their wine-growing potential. 
Their reports are based primarily on two sets of statistics: 
information collected by Member States from the declarations by wine 
growers, referred to in Article 8 of the basic Regulation, on grubbing 
operations, new plantings and replantings actually carried out; 
- the results of the annual statistical surveys of areas under vines 
provided for in Council Regulation (EEC) No 357/79 of 5 February 1979 (2). 
Using the information supplied by the Member States, the Commission is 
required to report to the Council each year, normally by 1 December, on the 
development of the Community's wine-growing potential, assessing the 
relationship between production potential (area of vineyards in production and 
yield per hectare) and consumption and to forecast foreseeable trends in this 
relationship. 
That is the purpose of this report, which covers mainly the 1985/86 and 
1986/87 wine years. Some Member States, however, have either been late in 
sending in, or have failed to send in at all, various data needed to draw up 
this report within the time limit laid down; there are also difficulties in 
comparing figures which neither refer to the same things nor cover the same 
periods, and this means that any forecasting of trends in the Community's 
wine-producing potential is very uncertain. 
The report will deal in turn with developments in the area under vines in the 
Community, the market, intra-Community and external trade, and the disposal of 
wine alcohol. 
(1) OJ No L 84, 27.3.1987, p. 1. 
(2) OJ No L 54, 5.3.1979, p. 124. 
- 2 -
1. AREA UNDER VINES IN THE COMTONITY 
The following will be examined in turn: 
(a) trends in the overall area under vines in the Community, by major 
categories of grape (wine grapes, table grapes, grapes for drying); 
(b) the area under wine grapes in each of the producer countries, as shown 
by the figures supplied by the Member States to the Statistical Office 
of the European Communities (EUROSTAT) or the Commission, under the 
various reporting procedures provided for in Community rules, 
including the statement of wine resources and the annual statistical 
surveys of areas under vines; 
(c) the results of the Community's structural policy since 1976. 
A. Total Community area under vines 
1. Vines for wine grapes 
Before Council Regulation (EEC) No 357/79 came into force in April 
1979, statistical surveys of areas under vines were based mainly on 
the reports from Member States for the purposes of the final statement 
of Community resources (Article 31 of Regulation (EEC) No 822/87). 
The first basic survey of areas under vines, designed to assess the 
changing situation on the Community wine market, under Regulation 
(EEC) No' 357/79, took place in 1979 in three Member States (Germany, 
France, Luxembourg) and was extended in 1982 to the two other producer 
Member States, Italy and Greece. 
Spain carried out an initial basic survey in 1987, on the situation 
after grubbing and planting in the 1986/87 wine year. 
A first survey will be carried out in Portugal in 1989, on the 
situation after grubbing and planting in the 1988/89 wine year. 
- 3 -
The basic surveys cover all holdings having a cultivated area under 
vines normally intended for the production for sale of grapes, grape 
must, wine or vegetative propagation material for vines. The basic 
survey is to be carried out every ten years and to record the 
following particulars: 
A. agricultural area in use; 
B. area under vines cultivated, broken down according to its normal 
production use into: 
(a) the area under wine grape varieties, further broken down into: 
- quality wines psr, 
- other wines: 
- including wine compulsorily intended for the manufacture of 
certain potable spirits with a registered designation of 
origin; 
(b) the area under table grape varieties; 
(c) the area planted with root-stock for future grafting; 
(d) the area cultivated solely for the production of vegetative 
propagation material for vines, subdivided into: 
- nurseries, 
- parent vines for foot-stock; 
(e) the area under varieties of grapes for drying. 
The results of the first basic survey were published in May 1985 (1). 
In addition, annual intermediate surveys have been carried out on 
areas grubbed/abandoned, replanted or newly planted with wine grape 
vines. These surveys were carried out for the first time in 1981 in 
Germany, France and Luxembourg and cover the two wine years 1979/80 
and 1980/81. From 1982/83 annual intermediate surveys have been 
carried out for all the producer countries, the most recent being for 
1986/87. 
The latest figures available show the total area under wine-grape 
vines in the Community of Ten to be 2 081 766 hectares for 1986/87 and 
2 097 747 hectares for 1985/86 (as against 2 124 639 hectares 
previously). Taking Spain and Portugal into account, and adopting the 
figures in the final statement of resources, the total area for the 
Community of Twelve in 1985/86 was 4 126 434 hectares. 
For the Community of Ten, the total area under vines in 1985/86 had 
fallen by some 27 000 hectares, or 1.3X, as against 1984/85, owing to 
the setting-up of a structures policy. Together with the new approach 
adopted to market policy, the fall since 1979/80 is now some 345 000 
hectares. 
(1) La vigne dans la Communauté europeene. Euros tat, ISEN 92-825-5255-1, 1985. 
- 4 -
This significant fall in the area under vines, as indicated by the figures reported by 
the Member States under the procedure for drawing up the statement of Community 
resources, is confirmed by the results of the annual statistical survey of areas under 
vines, as the comparative table below demonstrates. 
Area in production» broken down by Member State 
(in hectares) 
• 
: 1979/1980: : Source 
: Final 
. statement 
of resources 
Reg. 357/79 
: : Final 
: : statement 
: : of resources 
i 1980/1981: 
: : Reg. 357/79 
. • 
: : Final 
: : statement 
: : of resources: 
: 1981/1982: : 
: : Reg. 357/79 : 
• • < 
• • * 
• • 
• • 
• • 
• • 
• • 
e • 
: 1982/1983: 
. . 
. . 
i 1983/1984: 
. . 
: 1984/1985: 
• • 
• • 
• • 
• • Final : 
statement 
of resources: 
Reg. 357/79 : 
Final 
statement 
of resources: 
Reg. 357/79 : 
Final : 
statement 
of resources: 
Reg. 357/79 : : F 
: 1 177 771 
: 998.715 
: 1.138.784 
978.003 
1.121.110 : 
960.636 : 
1.102.000 : 
954.397 : 
1.069.000 : 
947.700 ! 
1.082.000 : 
940.031 : : D 
: 95 578 
: 93.858 
: 95.686 
i 95.511 
I 97.797 ! 
, 96.728 : 
97.822 : 
98.294 : 
100.763 I 
99.529 : 
101.387 i 
99.730 : : I 
: 1 159 678 
: survey 
: postponed 
: 1.157.530 
: survey 
: postponed 
\ 1.141.748 
. 1.031.229 ' 
1.123.034 : 
1.031.229 : 
1.053.630 : 
1.014.793 J 
1.048.314 I 
994.643 : : L 
: 1 283 
: 1.273 
i 1.313 
. 1.313 
1.309 
1.309 
1.316 : 
1.306 : 
1.306 : 
1.334 : 
1.334 I 
1.322 : : Gr 
: 104 701 
; survey 
: postponed 
: 101.395 
: survey 
: postponed 
95.557 
90.143 ' 
94.223 s 
89.631 : 
90.248 : 
89.518 : 
89.242 : 
88.913 : : EEC 
: 2 539 018 : 
! 2.494.715 : 
i 2.457.528 : 
: 2.180.099 : 
: 2.418.402 : 
i 2.174.857 : 
, 2.314.947 : 
2.152.874 : 
2.322.715 : 
2.124.639 : 
- 5 -
: 1985/1986* 
: 1986/1987: : Source 
: Final 
: statement 
: of resources 
. Reg. 357/79 i 
Final 
statement 
of resources: 
Reg. 357/79 : F 
: 1.079.000 
i 927.720 
1.020.202 : 
923.634 : : D 
: 93.020 
: 99.230 : 
t 93.059 : 
99.262 : : I 
: 1.022.310 : 
981.596 : 
, 1.012.685 : 
970.468 : : L 
: 1.322 : 
: 1.318 ; 
; 1.318 ! 
1.326 : : Gr 
87.739 
87.882 
87.144 : 
87.074 : . CEE 
: 2.283.791 
: 2.097.746 
: 2.214.408 
i 2.081.766 
Although some of these figures are partial or provisional, a comparison of 
the results of the two methods - the final statement of resources on the one 
hand and the basic and intermediate surveys on the other (Regulation 357/79) 
- shows a definite discrepancy between the figures for the area under 
vines. This is because the survey under Regulation (EEC) No 357/79 is 
limited to areas for production for sale, thus excluding very small 
vineyards producing wine for consumption by the growers' families; also 
excluded are vines under glass and vineyards in Member States with a total 
area of less than 500 hectares. Annual reporting of wine-growing potential 
as provided for in Article 9 of Regulation (EEC) No 822/87 covers all areas 
under vines, whatever the purpose of production and irrespective of who it 
is produced by. 
- 6 -
Wine «urvav fRegulation 3S7/791 i Intermediate surveys of wine oraoe vlnas 
: FR Germany 
: quality wines: 
: psr 
: total 
: fxajocc 
: quality mines: 
: psr 
: total 
: Hal* 
: quality wines 
: psr 
: total 
: quality Mines 
: psr 
: total 
: GjQfifiCft 
: quality wines 
: psr 
: total 
: EUR 10 
: quality wines 
: psr 
: total 1n : 
produc- : 
tlon 
1.9.84 : 
99.529 : 
99.529 : 
488.199 i 
459.501 
947.700 
210.570 
1 804.223 
.1.014.793 
.1.334 
1.334 
: 31.109 
: 58.409 
: 89.518 
: 830.741 
:1.322.133 
:2.152.874 1.9.1984 - 1.9.1985 
Grubbing/ 
Abandonment : 
4.263 : 
4.263 : 
8.061 : 
18.047 . 
26.108 
6.190 
23.891 
30.081 
40 
40 
362 
1.252 
1.614 
18.916 
43.190 
62.106 Re­
planting : 
4.165 i 
4.165 ! 
8.835 i 
6.551 
15.386 
4.900 
' 1.437 
6.337 
28 
28 
301 
708 
1.009 
: 18.229 
8.696 
: 26.925 New 
plantings: 
299 : 
299 : 
2.955 : 
93 : 
3.048 : 
1.934 
1.660 
3.594 
: 
: 
: 5.188 
: 1.753 
: 6.671 In 
produc- : 
tlon 
1.9.85 : 
99.730 : 
99.730 : 
491.928 i 
448.103 . 
940.031 
211.214 
783.429 
994.649 
1.322 
1.322 
: 31.048 
: 57.865 
: 88.913 
: 835.242 
: 1.289.397 
:2.124.639 1.9.1985 au 1.9.1986 
Grubbing/ 
Abandonment: 
4.328 : 
4.328 : 
8.935 ! 
19.443 
28.378 
6.564 
17.530 
24.094 
63 
63 
286 
1.770 
2.056 
20.176 
38.743 
58.919 Re­
planting : 
3.737 : 
3.737 : 
9.107 : 
4.578 : 
13.685 
1.109 
1.073 
2.182 
1 
1 
117 
909 
1.026 
14.071 
6.560 
20.631 New 
planting : 
91 
91 
2.308 : 
74 : 
2.382 : 
4.623 
4.242 
8.865 
58 
58 
: 
: 7.080 
: 4.316 
: 11.396 In 
produc- : 
tlon 
1.9.86 : 
99.230 : 
99.230 : 
494.408 : 
433.312 : 
927.720 
210.382 ' 
771.214 
981.596 
1.318 
1.318 
30.879 
: 57.004 
: 87.882 
: 836.217 
: 1.261.530 
:2.097.747 1.9.1986 au 1.9.1987 
Grubbing/ 
Abandonment: 
4.097 : 
4.097 : 
8.833 : 
16.222 : 
25.055 ' 
5.121 : 
14.566 : 
19.687 ' 
32 : 
32 
254 
1.305 
1.559 
18.337 
32.093 
50.430 Re­
planting 
4.054 
4.054 : 
11.555 : 
5.980 : 
17.635 : 
3.558 : 
2.395 : 
5.953 : 
40 ' 
40 
153 
598 
751 
19.360 
8.973 
28.333 New 
planting : 
75 
75 : 
3.347 : 
92 : 
3.439 : 
364 : 
2.242 : 
2.606 < 
-
-
i 3.786 
: 2.334 
: 6.120 In 
produc- : 
tlon 
1.9.87 : 
99.262 : 
99.262 : 
500.477 : 
423.157 : 
923.634 : 
209.183 : 
761.285 : 
970.468 : 
1.326 : 
1.326 : 
20.778 : 
: 56.298 : 
: 87.074 : 
: 841.026 : 
: 1.240.774: 
:2.081.766: 
- 7 -
As average yield of wine-grape vineyards in the Community of Twelve 
has recently been around 46.6 hectolitres per hectare, a decrease in 
vineyard area of 100 000 hectares may be estimated as involving a fall 
in production of some 4.7 million hectolitres (see Table 2). 
This is confirmed if we look only at areas not yet in production. 
These amounted in 1985/86 to 134 073 hectares (see Table 1). 
2. Other vineyards 
2.1 For table grapes 
Table 3 shows the area under table grape vines in the Community to be 
falling gently. 
In 1971/72 it amounted to some 134 374 hectares (including 6 512 not 
yet in production) and by 1982/83 it was only 124 489 hectares. Since 
then the figure for France has continued to fall: 32 526 hectares in 
1981/82 and 26 000 in 1985/86. In Italy, however, there was a 
distinct rise over the same period, from 72 015 to 80 477 hectares. 
In Greece there was a slight fall from 20 498 hectares in 1981/82 to 
20 433 in 1982/83 and 20 237 in 1985/86. 
In the Community of Eleven, including Spain, the area of land under 
vines for table grape production in 1985/86 was 196 636 hectares, of 
which 69 922 were in Spain. 
2.2 Grapes for drying 
Table 4 shows that, rather like other areas under vines, that under 
vines for grapes for drying is tending to fall. 
The main producer country in 1985/86 was Greece, with 59 645 hectares, 
the figure for Spain being 15 977 (including 15 895 in production). 
Portugal's output of grapes for drying is very much less than even its 
own market requires. Average production in 1983/1985 was 48 000 kg, 
and imports in 1983, 1984 and 1985 amounted to 439, 362 and 283 tonnes 
respectively, the corresponding export figures being 4, 33 and 5.4 
tonnes• 
- 8 -
B. Areas under wine-grape vines in the main producer countries 
1. Germany ; steady 
The basic survey and subsequent intermediate surveys show the total area under 
wine-grape vines, at 1 September 1986, to be 99 230 hectares, as against 
99 730 in 1985, a fall of 0.5X. This was the first time since 1979 that there 
had been a fall compared with the previous year. 
The figures for 1986/87 show a very small rise of 32 hectares. 
: 1.9.1979 
: Grubbing/Abandonment 
: Replanting 
: New planting 
: 1.9.1980 
: Grubbing/Abandonment : 
: Replanting 
: New planting 
: 1.9.1981 : 
: Grubbing/Abandonment : 
: Replanting 
: New planting 
: 1.9.1982 
: Grubbing/Abandonment : 
: Replanting 
: New planting 
: 1.9.1983 : 
: Grubbing/Abandonment : 
: Replanting 
: New planting 
: 1.9.1984 : : Total 
: 1 
93.857 
3.821 
3.843 
693 
94.572 : 
4.384 : 
4.307 i 
1.016 i 
95.511 J 
3.367 : 
3.654 : 
984 : 
96.782 : 
3.580 : 
4.024 : 
1.068 : 
98.294 : 
3.428 i 
3.776 : 
887 : 
99.529 : : I < 30 
: 2 
i 7.742 : 
: 381 : 
2.020 : 
95 : 
5 J 
2 J 
46 : Qualit] 
Yield cli 
: II 30-70 
: 3 
\ 19.979 , 
851 . 
66.772 : 
: 3.104 J 
26.899 : 
\ 977 i 
20 : 
5 J 
95 J 
515 i 
18.933 i f wines psr 
isses (hi/ha 
•III 70-110 
: 4 
• 38.753 
: 1.618 
19.916 : 
875 J 
59.364 : 
: 1.937 : 
3.469 i 
417 J 
11.060 : 
586 i 
69.480 : ) i 
: IV>110 : 
: 5 : 
: 35.121 : 
: 1.352 : 
5 233 : 
24 : 
t 7.329 : 
: 358 : 
\ 93.379 : 
I 3.158 : 
: 87.107 : 
: 2.326 : 
i 11.049 : 
-8a-
: Grubbing/Abandonment : 
: Replanting 
: New planting 
: 1.9.1985 
: Grubbing/Abandonment : 
: Replanting 
: New planting 
: 1.9.1986 s 
: Grubbing/Abandonment : 
: Replanting 
: New planting 
: 1.9.1987 : Total 
: 1 
4.263 
4.165 ' 
299 : 
99.730 i 
4.328 ' 
3.737 : 
91 s 
99.230 : 
4.097 : 
75 J 
4.054 : 
99.262 : Quality wines psr 
Yield classes (hl/ha) : 
: I < 30 
2 
: 2 ' 
14.370 i 
983 : 
: 1 i 
4 : 
84 : : II 30-70 
3 
\ 731 
53.773 i 
2.457 i 
393 \ 
169 i 
7.270 : :III 70-110 : 
: 4 : 
2.926 : 
31.569 : 
888 : 
60.042 : 
2.666 : 
63.744 : : IV>110 : 
: 5 : 
604 : 
t - : 
— . 
38.777 : 
1.258 : 
• 28.164 : 
- 9 -
2. France : decline 
The data in the basic statistical survey updated from the interim surveys 
with regard to quality wines psr and other wines show an expansion since 
1987 in the area under quality wines psr of 6X but a contraction for other 
wines of 16.3X. 
: Situation on : 
: 1.9.1981 
: Grubbing/Abandonment 
: Replanting 
: New planting 
: 1.9.1982 
: Grubbing/Abandonment 
: Replanting 
: New planting 
: 1.9.1983 
: Grubbing/Abandonment 
: Replanting 
: New planting 
1.9.1984 i 
: Grubbing/Abandonment 
: Replanting 
: New planting 
: 1.9.1985 
: Grubbing/Abandonment 
: Replanting 
: New planting 
: 1.9.1986 
: Grubbing/Abandonment 
: Replanting 
: New planting 
: 1.9.1987 : : Total 
! 472.339 
9.376 
9.828 
2.940 
: 475.731 
7.938 
10.275 
3.298 
• 481.366 
8.788 
11.780 
3.841 
488.199 
8.061 
8.835 
2.955 
491.928 
8.935 
9.107 
2.308 
494.408 
8.833 
11.555 s 
3.347 J 
500.477 Quality wines psr 
: Yield d 
: I < 30 
44.486 
988 
s 597 
83 
44.178 
645 
750 
93 
44.376 
! 793 
714 
131 
44.428 
695 
686 
95 i 
44.514 : 
512 : 
306 \ 
24 : 
44.332 : 
549 : 
265 i 
30 : 
44.078 s Lasses (hl/ha 
: II 30-70 
: 388.477 
: 7.364 
: 8.527 
: 2.167 
: 391.807 
: 6.455 
: 8.505 
! 2.257 
: 396.114 
: 7.346 
: 10.300 
• 3.046 
: 402.114 
: 6.405 i 
i 7.423 
: 2.069 
: 405.201 
7.126 
7.743 J 
i 1.713 
: 407.531 
l 7.296 3 
9.888 
2.480 
: 412.603 ) : 
; III 70-110 : 
39.376 : 
: 1.024 : 
5 704 : 
: 690 : 
39.746 : 
838 : 
5 1.020 : 
948 : 
40.876 : 
649 : 
766 : 
664 : 
41.657 : 
961 : 
• 726 : 
791 : 
42.213 : 
1.297 : 
1.058 : 
571 : 
42.545 : 
988 : 
1.402 : 
837 : 
\ 43.796 : 
- 10 -
Unit : hectare 
: Situation on: 
: 1.9.1981 
: Grubbing/Abandonment 
: Replanting 
: New planting 
: 1.9.1982 
: Grubbing/Abandonment : 
: Replanting 
: New planting 
: 1.9.1983 
: Grubbing/Abandonment : 
: Replanting 
: New planting 
: 1.9.1984 : 
: Grubbing/Abandonment : 
: Replanting : 
: New planting : 
: 1.9.1985 : 
: Grubbing/Abandonment : 
: Replanting 
: New planting 
: 1.9.1986 : 
: Grubbing/Abandonment : 
: Replanting 
: New planting 
: 1.9.1987 : i Total 
: 505.664 
28.279 
7.400 , 
: 120 i 
: 484.905 : 
19.268 : 
7.265 : 
129 : 
. 473.036 i 
21.896 : 
8.203 : 
163 : 
459.506 : 
18.047 : 
6.551 : 
93 ' 
448.103 : 
19.443 i 
4.578 : 
74 : 
433.312 : 
16.222 i 
5.980 : 
92 i 
423.162 : : I < 40 
8.952 ' 
: 397 « 
: 24 ' 
: 1 : 
8.580 : 
253 3 
36 : 
: 1 3 
7.815 3 
273 3 
42 i 
14 3 
7.598 i 
194 i 
22 J 
1 : 
7.427 1 
169 i 
9 \ 
7.267 ! 
311 i 
11 i 
2 3 
6.969 3 Other wine 
Yield classes (hl/ha) 
• II 40-70 : 
• 99.149 3 
6.142 : 
: 1.070 : 
: 35 i 
94.112 i 
3.996 3 
1.018 3 
39 3 
91.722 : 
4.517 : 
1.347 3 
; 36 3 
88.588 3 
4.114 : 
909 i 
43 i 
85.426 3 
3.914 i 
804 3 
23 3 
'•a_ni • II I m ]»•«•' 
82.339 s 
E 3.263 i 
906 3 
46 i 
80.028 3 -III 70-100 3 
: 274.516 3 
i 15.015 3 
4.578 : 
: 84 : 
: 264.163 ; 
9.567 3 
4.696 3 
88 3 
: 259.380 3 
12.085 i 
5.419 : 
: 109 3 
: 252.823 : 
9.954 3 
4.094 i 
49 3 
: 247.012 3 
! 13.562 3 
3.465 3 
51 3 
: 236.966 3 
9.796 3 
: 3.716 3 
\ 44 3 
I 230.930 3 :IV 100-130 . 
68.508 : 
3.838 : 
: 1.072 : 
: 65.742 : 
3.246 : 
1.008 : 
: 1 3 
63.510 i 
2.844 : 
962 : 
: 4 : 
61.632 : 
1.928 i 
910 3 
60.614 3 
1.666 3 
: 260 3 
59.208 3 
1.430 3 
\ 779 3 
1 - J 
58.557 : V>130 
54.539 
2.887 
656 
; 52.308 
2.206 
I 507 
50.609 
2.177 
433 
48.865 
1.857 
616 
47.624 
132 
: 40 
47.532 
1.422 
568 
46.678 
The total area in production in France at 1.9.1987 was, according to the statistical 
surveys, about 924 000 ha, while the reports under the final estimate indicate an area 
of 1 020 202 ha, giving a discrepancy of about 96 000 ha, which should normally 
represent that area producing wine not for sale. 
The tendency to a decline in total area is confirmed by the series for the final 
estimates (Table 1 of the Annex). 
- 11 -
3. Italy ; decline 
In Italy, the first basic survey was carried out in 1982, and updated by the 
first interim survey in 1984. The results show: 
: Situation on : 
: 1.9.1982 
: Grubbing/Abandonment 
: Replanting 
: New planting 
: 1.9.1984 
: Grubbing/Abandonment 
: Replanting 
: New planting 
: 1.9.1985 : 
: Grubbing/Abandonment : 
: Replanting : 
: New planting : 
: 1.9.1986 : 
: Grubbing/Abandonment : 
: Replanting : 
: New planting : 
: 1.9.1987 : Total 
: 2 
205.997 
6.859 
7.317 
4.115 
210.570 : 
6.190 3 
4.900 : 
1.934 : 
211.214 : 
6.564 : 
1.109 : 
4.623 : 
210.382 : 
5.121 : 
3.558 : 
364 : 
209.183 : ! I < 30 
: 3 
: 37.361 
1.343 
1.361 , 
1.280 3 
493 : Quality wines psr 
Yield classi 
: II 30-70 
: 4 
: 124.620 
l 4.238 
2.200 . 
1.209 : 
1.862 : 58 (hl/ha) 
: III 70-110 
: 5 
: 44.016 
! 1.278 
: 2.485 : 
2.986 : 
2.672 : : V > 110 : 
: 6 : 
• - : 
: - : 
144 : 
1.089 : 
94 : 
- 12 -
: Situation on : 
: 1.9.1982 
: Grubbing/Abandonment 
: Replanting 
: New planting 
: 1.9.1984 
: Grubbing/Abandonment : 
: Replanting 
: New planting 
: 1.9.1985 
: Grubbing/Abandonment : 
: Replanting 
: New planting 
: 1.9.1986 
: Grubbing/Abandonment 3 
: Replanting 
: New planting 
: 1.9.1987 Total 
! * 7 
: 825.232 
: 30.187 : 
: 5.777 
i 3.401 , 
: 804.223 : 
23.891 : 
: 1.437 3 
1.660 ; 
: 783.429 : 
17.530 3 
1.073 s 
4.242 ; 
: 771.214 s 
14.556 : 
2.395 3 
2.242 : 
: 761.285 3 : I < 40 
8 
: 243.570 : 
8.692 3 
6.065 3 
5.037 3 
4.376 3 Other wine 
Yield classes (hl/ha) : 
• II 40-70 J 
9 
\ 371.931 J 
14.127 « 
6.451 : 
4.395 : 
3.438 3 till 70-100 : 
: 10 3 
: 142.150 3 
5.165 ' 
: 2.875 : 
5.671 3 
3.680 : iIV 100-130 3 
: 11 : 
39.768 : 
1.686 : 
i 1.096 : 
: 1.854 : 
i 753 3 V>130 : 
12 : 
27.813 : 
517 : 
7.404 : 
573 : 
2.319 : 
In 1986/87 the survey gave 761 285 hectares under other wine and 209 183 hectares under quality 
wine psr, a total fall of 11 000 hectares since 1985/86. 
- 13 -
4. Luxembourg : steady 
According to the wine surveys, areas changed between 1979 and 1986 as follows: 
Unit : hectare 
: Situation on : 
: 1.9.1980 
: Grubbing/Abandonment 
: Replanting 
: New planting 
: 1.9.1981 
: Grubbing/Abandonment 
: Replanting 
: New planting 
: 1.9.1982 
: Grubbing/Abandonment 
: Replanting 
: New planting 
: 1.9.1983 
: Grubbing/Abandonment 
: Replanting 
: New planting 
: 1.9.1984 
: Grubbing/Abandonment 
: Replanting 
: New planting 
: 1.9.1985 
: Grubbing/Abandonment 
: Replanting 
: New planting 
: 1.9.1986 : 
: Grubbing/Abandonment 
: Replanting : 
: New planting : 
: 1.9.1987 s Total 
1.283 
: 47 
72 
: 5 
1.313 
47 
39 
4 
1.309 : 
46 : 
35 J 
8 3 
1.306 : 
» 37 i 
45 i 
20 : 
1.334 3 
40 3 
28 3 
1.322 3 
63 3 
1 3 
58 i 
1.318 : 
32 : 
40 : 
1.326 3 : I < 30 
5 - J 
I - 3 
: - 3 
— 
: - J 
— 
; < 
t - J 
: - 3 
> _ •< 
< > < 
1 - 3 Quality wine psr 
Yield classes (hl/ha) 
t 
i II 30-70 J 
' - 3 
— 
\ - 3 
. 
mm 
! - J 
\ - ! 
' - 3 
i -
> 
I - 3 : III 70-110 J 
400 3 
! 16 3 
; 26 : 
: 2 3 
: 419 i 
: 16 3 
: 13 3 
• 1 < 
: 422 3 
• - ~ • - i « 
8 3 
12 3 
: 2 3 
428 3 
! 8 3 
: 17 3 
: 2 3 
I 439 3 
\ 15 J 
: 12 3 
: 436 3 
: 14 3 
\ 29 1 
: 451 3 
: 3 , 
: 16 
464 • ''.;;-%&?*** -<•' * 
'VW^ : 
883 * 
31 : 
46 : 
• '°-M 3 : 
\ .,.^'^^i^- s 
• •IIS*7 * 
i -, rf & 23 : 
\ -:;?p.:.' 6 : 
: 878 : 
: ,1^118 : 
895 : 
1 :->'; 25 : 
886 : 
I ::^:-- 1 : 
. 29 ; 
867 : 
S 29 : 
• 24 : 
! ' v- *'ij> "'•-' - 3 
862 : 
Thus, the data on the basis of the final estimate, given in Table 1 in the Annex, 
confirm the stability of wine-growing areas in Luxembourg. 
VI/4M3/M-EN (PVIN-2SS1) 
- 14 
WXWI SURVEY - INTERMEDIATE SURVEYS (Rtfl. 3S7/79) 
CHANGES IN REGIONAL FIGURES 1992-19M 
- h* -
19ft : Sfimsei : MantteJ 
LUXENROURG l.ttf SI 1RS its* 
1.SS4 Grufcboej 
49 MtrttteJ 
2S TOTAL MINE GRAKS 
Grûbfïtd IMS 
1.122 •» Plant* 
19 19M 
1.119 GruMod : Planta* 
S2 4R 19S7 
1.32S 
IONE SURVEY (Rtf. SS7/79) 
InttrmaeJIat* survty 
- ha -
HOI PUNTING 
1979/M 
LUXEMR0UR6 19S9/R1 19S1/R2 19S2/R2 19RS/S4 : 19S4/9S 
•:« 
29 19U/M 
St 19M/97 
- 15 -
5. Greece : decline 
According to the basic statistical survey carried out in 1982 and updated L * ~Sâ 
areas growing wine in Greece declined by a total of 2.41 over the period 19a? 
Situation on : 
1.9.1982 
Grubbing/Abandonment 
Replanting 
New planting 
1.9.1983 
Grubb ing/Abandonment 
Replanting 
New planting 
1.9.1984 
Grubbing/Abandonment 
Replanting 
New planting 
1.9.1985 
Grubbing/Abandonment 
Replanting 
New planting 
1.9.1986 
Grubbing/Abandonment 
Replanting 
New planting 
1.9.1987 Quality wine per 
Yield classes (hi/ha) 
Total 
II 30-70 
30.879 x 
254 : 
153 : 
: 
j. 
30.778 t 77 : 121 
: 120 III 70 110 
5 
13.026 
83 
10S 
72 
34 
37 HO 
5.455 
44 
45 
13 
20 
- 16 -
: Situation on : 
: 1.9.1982 
: Grubbing/Abandonment 
: Replanting 
: New planting 
: 1.9.1983 
: Grubbing/Abandonment 3 
: Replanting 
: New planting 
: 1.9.1984 
: Grubbing/Abandonment : 
: Replanting 
: New planting 
: 1.9.1985 J 
: Grubbing/Abandonment : 
: Replanting 
: New planting 
: 1.9.1986 
: Grubbing/Abandonment : 
: Replanting 
: New planting 
1.9.1987 Total 
: 7 
: 59.114 
: 1.250 
682 
58.546 
922 ! 
786 
58.410 : 
1.252 3 
708 J 
57.866 : 
1.770 J 
909 3 
57.005 J 
1.305 : 
598 : 
56.298 i Other wine 
Yield classes (hl/ha) : 
: I < 40 
8 
18.078 ' 
: 127 ! 
211 : 
575 J 
815 s 
643 3 : II 40-70 3 
: 9 3 
: 15.482 i 
237 , 
350 : 
350 
564 i 
261 3 till 70-100 : 
: 10 : 
i 11.677 3 
l 171 3 
\ 215 J 
\ 267 : 
l 279 3 
l 263 3 IV 100-130 3 
11 
7.362 3 
: 647 : 
80 i 
53 3 
96 3 
: 52 : • V>130 
12 : 
6.515 : 
: 69 : 
\ 67 : 
7 : 
', 16 : 
: 87 : 
There is a 1.5X fall in the area under other wine in Greece aa against the previous 
year. 
UVi 
- 17 -
C. Structural policy 
The structural policy in effect since 1976 breaks down into two basic 
aspects: measures to restructure vineyards, and the grubbing-up of 
vineyards. 
(ha) 
Types of measure 
Legal instrument 
Conversion premium 
Regulation 1163/76 
Special premium for 
- restructuring 
- conversion 
- irrigation 
Directive 78/627/CEE 
Abandonment of 
vineyards 
- temporary 
- permanent 
- renunciation of 
replanting 
Regulation 456/80 
Vineyard 
restructuring 
Regulation 458/80 
Permanent abandonment 
premium 
Regulation 777/85 1983 
78.041,92 
9.461,07 
11.357,96 
396,71 
23.810,51 
26.965,09 
7.128,96 
606,41 Area concert 
: 1984 
: 12.813,7 
: 14.777,5 J 
: 820,7 3 
: 32.514,74 : 
: 34.237,52 3 
: 7.134,74 i 
: 2.526,17 3 led in hectai 
• 1985 
: 20.043,13 : 
: 18.306,30 3 
i 1.167,13 3 
: 42.043,28 3 
: 41.554,96 3 
1 7.134,74 J 
i 6.866,48 3 res by end ol 
19866 
: 28.652,60 
: 19.037,38 3 
i 1.517,77 3 
: 52.367,30 3 
. 51.765,55 ! 
: 7.134,74 j 
, 13.309,90 3 1987 : 
: 31.152,84 : 
: 19.169,25 : 
i 1.517,77 : 
1 54.343,98 : 
i 54.444,92 : 
! 7.134,74 : 
! 18.817,83 : 
i 16.854,72 : 
ESSSSBSSi 
The aim of the measures provided for in Regulation (EEC) No 1163/76 was to 
remove from the market inferior products from wine-grape vine varieties. By 
1983 a total of 78 041.9 hectares had been converted. 
Directive 78/627/EEC provided for special premiums for restructuring, 
conversion and irrigation in Languedoc-Rouasillon and some neighbouring 
areas. Up to the end of 1987, 31 152.84 hectares had been restructured, 
19 169.25 had been converted and 1 517.77 hectares devoted to crops other 
than the vine. Under Regulation (EEC) No 456/80, 115 923.5 hectares of 
vineyard had by 1987 been abandoned, the figure for Regulation (EEC) No 
458/80 being 18 817.3 hectares. 
This rather modest fall in area under vines is confirmed by the intermediate 
surveys under Regulation (EEC) No 357/79: between 1982 and 1986 the area 
under wine grape vines fell by only 83 352 hectares (approx. 3.7X). 
- 18 -
Despite the financial incentives for the abandonment of vineyards 
adopted in 1980 (Regulations 458/80 and 456/80) the imbalance on the 
Community market in table wine persisted, and this led to the existing 
socio-structural instruments for reducing the Community's 
wine-producing potential to be reinforced, given also the worries 
about the consequences of the enlargement of the EEC to include Spain 
and Portugal: 
implementation of Regulation 456/80 was brought to an early end, 
and provision was made for increased aid to growers who quickly 
changed their commitment for temporary abandonment to permanent 
abandonment; 
a new system of incentives for the permanent abandonment of 
vine-growing was introduced, to apply from 1985/86 to 1989/90 
inclusive. 
These new provisions were contained in Council Regulations (EEC) Nos 
776/85 and 777/85 of 26 March 1985. The former derogated from the 
arrangements laid down in Regulation 456/80 and brought the joint 
measure to a close with the 1984/85 wine year as regards the temporary 
abandonment premium and 1992/93 as regards the permanent abandonment 
premium. 
Council Regulation (EEC) No 777/85 on the granting, for the 1985/86 to 
1989/90 wine years, of permanent abandonment premiums in respect of 
certain areas under vines provides for higher incentives, which are 
modulated for yield and vine variety. 
In order to implement the Regulation in Spain, from 1 January 1986, 
the premiums were fixed at a level taking into account the return from 
vine-growing in Spain and the objectives determined by the extent of 
the Spanish vineyard (Council Regulation (EEC) No 3775/85). This 
legislation envisages the permanent abandonment of about 300 000 
hectares (including Spain, to 1990). The new rules include the 
following innovations on the previous system: 
- an abatement, with compensation; of the right to replant 
originating from any grubbing-up carried out on the residual 
vine-growing area on the holding, in order that a reduction in 
production through the permanent abandonment of certain areas is 
not cancelled out in reality by an increase in the productivity of 
the remaining areas of the holding; 
- 19 -
compensation to wine cooperatives and other associations of 
vine-growers for increases in processing costs due to a significant 
reduction in their activity because of their being left by members 
receiving the permanent abandonment premium; 
new rules for financing by the EAGGF Guidance Section to facilitate 
execution by national administrations, through a system of advances 
on premiums; 
an increase in the amount of the abandonment premiums, the level of 
which, proportional to the sise of the areas under vines grubbed up 
on a given holding and to the average declared yield per hectare on 
the holding, this being designed to compensate not only for the 
cost of the actual grubbing operation itself and the loss of the 
corresponding entitlement to replant, but also for the loss of 
future income; 
extension of the scheme to include not only areas for the 
production of .table wine but also those for table grapes, grapes 
for drying, wines suitable for production of wine spirit of Cognac 
designated origin, and areas used as root-stock nurseries. 
Some specific features of vineyards in Greece and Portugal led to 
difficulties in implementing the above schemes in those two countries, 
and the Council adopted specific regulations, for Greece in 1985 and 
Portugal in 1986. 
Regulation (EEC) No 895/85 on a common measure to improve the 
structures of the wine-making sector in Greece includes a programme 
for the restructuring of certain areas under vines in Greece. 
Regulation (EEC) No 2239/86 on a specific common measure to improve 
vine-growing structures in Portugal breaks down into two main 
aspects: restructuring of vineyards and permanent abandonment. 
However, following the decisions taken at the Council meeting of 
Ministers of Agriculture on 28 and 29 March 1988, agricultural 
stabilisers were set up in the wine sector, involving the two aspects 
of markets and structures. In the latter case, a new grubbing scheme 
baa replaced that provided for in Regulation (EEC) No 777/85, applying 
- notwithstanding that Regulation - to all areas under vines, both 
those producing table wines and those producing quality wines psr 
(Council Regulation (EEC) No 1442/88 of 24 May 1988 on the granting, 
for the 1988/89 to 1995/96 wine years, of permanent abandonment 
premiums in respect of wine-growing areas). 
- 20 -
In order to allow for particular situations, and specifically the 
problem of depopulation, the Member States may be authorised not to 
implement the grubbing-up system in certain parts of their 
wine-growing territory, up to a maximum of 10X of their wine-growing 
potential. The Commission is to propose criteria for authorising such 
derogations• 
In order to make permanent abandonment more attractive, growers 
reducing their area significantly will enjoy total or partial 
exemption from compulsory distillation (Article 39 of Regulation (EEC) 
No 822/87), which, under the new system of prices, will involve a 
greater degree of disincentive. 
Exemption may be total if the holding's potential for producing table 
wine is reduced by more than 50%, with partial exemption at one or 
more levels if the reduction is between 20 and 50X. 
The degree of exemption will be determined by multiplying the yield, 
fixed on the basis of an average yield declared for the recipient's 
holding, the productive capacity of the vineyard to be grubbed-up 
being verified by on-the-spot assessment, by the area grubbed-up. 
The possibility of the grubbing-up arrangements being modified during 
implementation of the scheme is provided for. 
The new Regulation provides for the Council to re-examine the 
grubbing-up arrangements as a whole by 1 April 1990, on the basis of 
an exhaustive report from the Commission. 
Experience shows that structural measures have an inherent tendency 
not to get under way easily, but they are nonetheless an essential 
instrument for getting to the heart of problems and a necessary 
component of the Community's armoury of measures for achieving balance 
on the wine market. 
The Commission remains convinced that reducing areas under vines is 
one of the main ways in which balance on the wine market can be 
achieved. 
- 21 -
REGULATION (EEC) No 1163/76 
Conversion premium (1) 
: 1979 
: TOTAL 
: 1980 
: TOTAL 
: 1981 
: TOTAL 
: 1982 
: TOTAL 
: 1983 : 
: TOTAL : : Belgium 
: France 
i Belgium 
I France 
: Belgium 
: France 
: Italy 
Belgium 
France 
Italy 
Belgium 
France 
Italy Number of 
recipients 
62 
: 22.326 
i 22.388 
: 147 
34.760 
34.907 
233 : 
35.708 : 
16.888 3 
52.829 : 
259 : 
35.776 3 
16.781 i 
52.816 3 
262 i 
35.805 : 
24.991 : 
61.058 : Area : 
' concerned : 
(ha) : 
3 42 : 
I 25.38U40 : 
i 25.384,82 : 
8,94 : 
42.241,41 : 
: 42.250,35 : 
13,64 : 
43.540.89 : 
21.563,39 : 
65.117,92 : 
16,30 : 
43.706.90 : 
22.560,52 : 
66.283,73 : 
16,52 : 
43.757,25 : 
34.268,15 : 
78.041,92 : 
(1) Figures based on applications for reimbursement by the EAGGF Guidance 
Section. 
- 22 -
DIRECTIVE 78/627/CEE 
Special premium for restructuring, conversion and irrigation (1) 
: 1980 
: 1981 
: 1982 
: 1983 
: 3 
: 1984 
: 1985 
: s 
: 1986 : 
: 1987 : 
: : 
. . 
. a • » : Franca 
5 France 
: - Restructuring 
i - Conversion 
: France 
: - Reatructuring 
i - Conversion 
i - Irrigation 
' France 
' - Restructuring 
' - Conversion 
: - Irrigation 3 
» a 
: France : 
- Restructuring 
* - Conversion 
* - Irrigation 
Franca 
- Restructuring 
- Conversion i 
- Irrigation 3 
: 
France 3 
- Reatructuring 
- Conversion 
- Irrigation 
France J 
- Restructuring 
- Conversion i 
- Irrigation J Number of 
recipients 
1.513 
' 4.152 
481 
7.764 
2.692 
12.966 
5.600 
19 3 
16.786 
7.713 
52 
24.639 
9.994 l 
204 i 
* 
< 
34.947 
10.591 3 
232 i 
37.931 ! 
10.659 3 
232 i : Area 
i concerned : 
t (ha) : 
t 927,6 : 
2.751,8 : 
I 1.139,0 : 
: 5.307,5 : 
6.271,6 : 
9.461,07 : 
11.357,96 : 
396,71 : 
12.813,7 : 
14.777,5 : 
820,7 : 
20.043,13 : 
18.306,30 : 
t 1.167,13 : 
28.652,60 : 
19.037,38 : 
1.517,77 : 
t 
: 31.152,84 : 
19.169,25 s 
1.517,77 I 
(1) Figures based on applications for reimburs 
Section. t by the EAGGF Guidance 
••••«»,-• •*nt<" *n> mw n •»T^<T»>,"-^!P>'X»"-^-
- 23 -
REGULATION (EEC) No 456/80 
Abandonment of certain areas under vines and renunciation of replanting (1) 
•••••taai 
:France . 
:TOTAL . 
:France 3 
TOTAL : 
:France : 
.•TOTAL : 
:France : 
:Greece 3 
:T0TAL : 
:France ; 
:Greece : 
:TOTAL : 
:France : 
:Greece : 
: : 
:TOTAL : : 1982 
: 1983 3 
1984 : 
1985 : 
1986 : 
1987 : taaisamni ••••••••!• «I'SM»••! 
Temporary 
abandonment 
:Recipients 
6.074 
6.074 
: 13.032 
: 13.032 
18.925 3 
18.925 3 
25.663 i 
586 3 
26.249 3 
32.445 " J 
586 : 
33.031 : 
33.256 : 
1.134 3 
34.390 : Area in ha 
: 11.868,9680 
: 11.868,9680 
: 23.810,5138 
: 23.810,5138 
: 32.514,7449 
• 32.514,7449 3 
: 41.761,6834 : 
261,6000 : 
42.023,2834 : 
52.105,7023 3 
261,6000 : 
52.367,3023 J 
53.840,6065 3 
503,3750 : 
54.343,9815 i WMlMIBMi HMWaWiiiJjiaaia: 
Permanent 
t abandonment 
'Recipients 
: 7.467 
! 7.467 
; 16.496 
l 16.496 
: 22.138 
' 22.138 
\ 28.318 ' 
528 : 
: 28.846 3 
34.967 3 
528 : 
35.495 3 
36.122 i 
1.161 : 
37.283 : Area in ha 
: 14.515,0537 
: 14.515,0537 
: 26.965,0974 
: 26.965,0974 
: 34.237,5256 3 
• 34.237,5256 3 
• 41.377,3547 s 
177,6060 3 
: 41.554,9607 3 
• 51.587,9506 J 
177,6060 : 
' 51.765,5566 i 
54.002,6881 J 
442,2360 I 
54.444,9241 J 8»ssaa«Bgs« 
: Renunc: 
repli 
'Recipients 
! 3.576 
• 3.576 
: 5.234 
5.234 
5.236 
5.236 . 
5.236 
5.236 3 
5.236 : 
5.236 : 
5.236 : 
5.236 3 Lation of : 
inting : 
: Area in ha : 
• 4.899,4440 : 
4.899,4440 : 
: 7.128,9656 : 
7.128,9656 : 
7.134,7481 : 
7.134,7481 : 
7.134,7481 : 
7.134,7481 : 
7.134,7481 : 
7.134,7481 : 
7.134,7481 : 
7.134,7481 : 
(1) Figurée based on applications for reimbursement by the EAGGF Guidance Section. 
- 24 -
REGULATION (EEC) No 458/80 
Restructuring of vineyards (1) 
: 1983 
: 1984 
: 1985 
: 1986 
: 1987 : France 
: Germany 
' France 
i TOTAL 
• Germany 
: France 
: Italy 
TOTAL 
Germany 
France 
Italy 
TOTAL 
Germany 
France 
Italy 
TOTAL : Number of 
recipients 
: 23 
' 2 
46 
I 48 i 
t 4 
83 3 
: 1 : 
88 : 
: 5 3 
121 3 
7 J 
133 3 
7 J 
214 : 
12 3 
233 i Area : 
: restructured : 
in ha : 
i 606,4176 : 
600,4634 : 
1.925,7096 : 
2.526,1730 : 
1.131,5752 : 
4.733,6677 : 
1.001,2400 : 
6.866,4829 : 
1.722,9630 : 
9.557,1840 : 
2.029,7595 : 
13.309,9065 : 
3.017,6964 : 
12.918,4752 : 
2.881,6650 : 
18.817,8366 : 
(1) Figures based on applications for reimbursement by the EAGGF Guidance 
Section. 
- 25 -
REGULATION (EEC) No 777/85 
Premium for permanent abandonment of certain areas under vines (1) 
: 1987 : Greece 
: France 
TOTAL Number of 
recipients 
1.930 3 
8.001 : 
9.931 3 Area : 
abandoned : 
in ha : 
859,58 : 
15.995,14 : 
16.854,72 : 
(1) Figures based on applications for reimbursement by the EAGGF Guidance 
Section. 
- 26 -
2. THE MARKET 
This section examined first trends in production and overall demand for 
wine in the Community, as shown by the 1985/86 and 1986/87 forward 
estimates, then prices and Community intervention for the same years, 
and finally the prospects for wine consumption by 1992. 
2.1. Production and overall demand for wine in the Community 
2.1.1. Production 
Table 5 shows that average world production of wine over the last five 
years has been 333.9 million hectolitres, the average for 1974/79 being 
319.2 million. Average total production in the Community of Twelve in 
1982/87 was 205.6 million hectolitres, the figure for 1974/79 being 
197.8 million. 
Over the five years 1974/79 the Coinmunity of Twelve accounted for 62X 
of total world production, the figure for the period 1982/87 being 
approximately 61.61. 
Table 6 shows that the Community of Twelve's average output over the 
last three years has been 194.8 million hectolitres, whereas that of 
the Community of Ten for the three years 1980/83 was 158.6 million, the 
average over the years 1971/80 being 154 million. 
From 1984/85 to 1985/86 production in the Community of Twelve fell 
overall by 4.8 million hectolitres, or 2.5%. However, output in 
1986/87 was up by some 22.6 million on 1985/86 (a rise of 12.16%), at a 
total of 208.3 million hectolitres. 
Table 7 (Community of Twelve, 1985/86) ahowa that production breaka 
down into 65% table wine, 24% quality wines psr and 11% other wines. 
Of all wines, 58.5% were red and rosé and 41.5M white. Of table wines, 
33.8% were white and 66.2% red and rosé. 
- 27 -
Of quality wines psr, 54.6% were red and rosé and 45.4% white. Other 
wines were 78.4% white and 21.6% red and rosé. 
The same table shows that, for 1986/87, 66.9% of wine was table wine, 
25.6% quality wines psr and 7.5% other wines. Overall 56.9% of wine 
was red and rosé and 43.1% white, whereas 65% of table wine was red and 
rosé and 35% white. 
As regards quality wines psr, there is a balance between red/rose and 
white. 
Of other wines, 92% is white and 8% is red and rosé. 
In Italy, Tables 8 and 9 show wine production in 1985/86 to have been 
61.7 million hectolitres, a sizeable 8.5 million less than in 1984/85. 
This was due to the large fall in the output of table wine, amounting 
to only 48.6 million hectolitres (a fall of 10.7 million) while output 
of other wine and quality wine psr rose by 1.1 and 1.2 million 
hectolitres respectively. 
Output in 1986/87 amounted to 76.2 million hectolitres, an increase of 
14.5 million, or 23.5%, on 1985/86. This is due to an increase in both 
table wine, to 64.6 million hectolitres (an increase of 16 million), 
and quality wines psr (4% up at 22.3 million). Other wines fell by 1.7 
million hectolitres. 
In France, the 1985/86 harvest, at 70 million hectolitres, was 6.7 
million up on the previous year. The increase was both in quality 
wines (up 4.1 million) and in other wines (up 2.6 million), whereas 
output of table wines was steady (39.5 million). 
The 1986/87 harvest in France waa 72.7 million hectolitres (up 2.7 
million), the increase being due to greater production of quality wines 
psr (up 2.4 million) and of table wines (up 520 000 hectolitres), while 
output of other wines fell by about 200 000 hectolitres. 
- 28 -
In Germany, after the record harvest of 15.1 million hectolitres in 
1982, production in 1985/86 was 6.1 million, this being 2.8 million 
less than the 1984/85 figure of 8.9 million. The fall is accounted for 
by quality wines being 1.6 million hectolitres down and table wines 1.1 
million. 
In 1986/87 the German harvest was 4.8 million hectolitres more than in 
1985/86: quality wines psr were 4.3 million hectolitres up and table 
wines 460 000 hectolitres. 
In Greece, there was a fall in production in 1985/86 of 243 000 
hectolitres as against 1984/85, with a further 448 000 hectolitres in 
1986/87 as compared with 1985/86. These are falls of 4.8 and 9.4% 
respectively. 
In Luxembourg, production in 1985/86 fell to 107 000 hectolitres (as 
against 152 000 in 1984 and 185 000 in 1983), while the figure for 
1986/87 is 160 000 hectolitres, 49.5% more than in 1985/86. 
In Spain, production in 1985/86 was 33.1 million hectolitres, a fall of 
4.1% against the previous year, accounted for by a 1.8 million 
hectolitre fall in production of table wine, with increases in both 
quality wines psr (1.2 million hectolitres) and other wines (0.6 
million hectolitres). Production in 1986/87 was 35.8 million 
hectolitres, 8.1% more than in 1985/86, this being due to an increase 
in table wines (up by 3.3 million hectolitres), quality wines psr (up 
by 2.2 million hectolitres) and other wines (up by 2.7 million 
hectolitres). 
In Portugal, production in 1985/86 waa 9.9 million hectolitres, an 
increase of 1.2 million over 1984/85. In 1986/87 Portuguese output 
fell by 1.9 million hectolitres to 8 million. 
The above figures show both that wine production fluctuates widely from 
one wine year to another and from area to area and that it is rather 
difficult to lay down any precise quantitative and/or qualitative 
medium-term production objectivée or to make any worthwhile forecasts 
for the wine sector. 
- 29 -
Technical progress has led to a steady increase in vineyard yields and 
production of wine will thus continue to increase despite the reduction 
in vineyard area brought about by the structural measures adopted by 
the Community in 1985, to cut vineyard arses by granting aid for 
abandonment and so redress the situation of imbalance on the market. 
2.1.2. Demand(*) 
Table 24 reveals that since the period 1971/80 internal consumption in 
the Community of Ten has been falling markedly, from 144.9 million 
hectolitres in 1970/80 to 115.4 million in 1985/86 and 123.1 million in 
1986/87*. Total internal consumption in the Community of Twelve is 
150.6 million hectolitres. 
These figures do not include quantities of wine distilled: according 
to reports from the Member States these amounted in 1985/86 to 24.3 
million hectolitres, an appreciable fall of some 5.9 million as against 
1984/85, but rose by 15.7 million to 40 million in 1986/87. 
Table 30 on the trend shown by the statement of resources reveals that 
in 1985/86 direct human consumption in the Community of Ten fell to 
107.4 million hectolitres (7 million less than in 1984/85) and rose by 
5 million hectolitres in 1986/87*, to 112 million. 
The figure for the Community of Eleven in 1986/87 was 131.6 million 
hectolitres, and for the Community of Twelve it was 137.8 million. 
This sizeable fall in direct human consumption is accounted for mainly 
by the steady decrease in consumption per head of population in the two 
main producing Member States, France and Italy, which is not made up 
for by small increases in the non-producing countries. 
Table 25 shows that average per capita consumption of wine in the 
Community of Twelve was 41 litres in 1985/86 and 42 litres in 1986/87. 
The German figure rose from 23 litres per head in 1985/86 to 26 Litres 
in 1986/87, while consumption in France fell from 80 litres per head in 
1985/86 to 76 litres in 1986/87. In Italy consumption fell 
considerably in 1985/86 as against 1984/85 and rose again in 1986/87, 
* All figures for 1986/87 are provisional, 
- 30 -
to 66 litres per head. Consumption in the Netherlands is steady at 14 
litres per head. In Belgium consumption fell in 1985/86 but in 1986/87 
it exceeded the level of 1984/85 (18 litres). Consumption in 
Luxembourg increased slightly in 1986/87 to 60 litres per head. 
Consumption is increasing in the United Kingdom, with figures of 9 
litres in 1985/86 and 10 in 1986/87. The figures for Ireland and 
Denmark in 1986/87 are 3 and 19 litres respectively. Consumption in 
Greece is increasing, from 29 litres in 1985/86 to 34 litres in 
1987/88. Consumption in Spain fell slightly, to 48 litres, in 1986/87, 
while in Portugal the amount of wine drunk is falling, representing 60 
litres per head in 1986/87. 
Table 30 shows that, for the Community of Ten, non-Community 
distillation involved 6.5 million hectolitres in 1985/86 as against 6.1 
million in 1984/85 (up 7.9%). The amount in 1986/87 was 9.2 million 
hectolitres (up 41.5% on 1985/86). For the Community of Twelve in 
1986/87, non-Community distillation involved 10.2 million hectolitres. 
On the other hand, quantities distilled with Community aid, which in 
1985/86 amounted to 24.3 million hectolitres for the Community of Ten, 
rose in 1986/87 to 32.7 million hectolitres, an increase of 34.5%. For 
the Community of Eleven, 44.5 million hectolitres were distilled in 
1986/87. 
2.2 Community prices and intervention 
2.2.1. Prices 
For 1985/86 and 1986/87 guide prices for the various types of table 
wine were unchanged aa against 1984/85. 
As regards table wines of type R I, French prices were stable 
throughout 1985/86, at around 79% of the guide price. From the 
beginning of 1986/87 they weakened, falling to 71% of the guide price 
at the end of the wine year. 
Italian prices firmed progreaaively until April 1986 and then began to 
weaken, falling to 83% of the guide price in August. In 1986/87 they 
fluctuated in line with French prices, the level at the end of the year 
being 75% of the guide price. 
- 31 -
A few prices from Greece were recorded: they were around 89% of the 
guide price in 1985/86 and around 94% the year after. 
The few Spanish prices communicated, from 1 March 1986, were at an 
average of 72% of the guide price. Quotations became more frequent in 
1986/87, and prices, having fallen to 59% of the guide price, recovered 
to end the wine year at 72%. The representative Community price 
followed French levels very closely. Spanish prices were multiplied by 
a correcting coefficient corresponding to the ratio between Community 
and Spanish guide prices. This coefficient was set at 1.81 as from 
1 March 1986, and 1.62 for the 1987/88 wine year. 
For red table wines of type R II, the only French price quoted, Bastia, 
was fairly stable over both years, at between 68 and 75% of the guide 
price, which was about 5% higher than the average for 1984/85. 
The very few prices available from Italy firmed up at the beginning of 
1985/86 and then weakened again from June 1986, to fluctuate markedly 
throughout 1986/87, ending down at 64% of the guide price. 
No Greek prices were included. 
Spanish prices, communicated from 1 March 1986, remained fairly stable 
at more than 82% of the guide price, but collapsed at the beginning of 
1986/87 to 66%, before recovering to 79% in August 1987. 
The trend in the representative Community price was irregular, but 
since Spanish prices were included it has tended to follow them. 
As regards white table wines of type AI, prices in France weakened at 
the beginning of 1985/86, falling to 83% of the guide price, before 
recovering in early 1986 to end the wine year at 89%. During 1986/87 
they were steady at around 84% of the guide price. 
- 32 -
Italian prices were slightly lower than those in France, varying 
between 75 and 86% of the guide price at the end of 1985/86, but they 
fell aa the next wine year began, to a low of 72% of the guide price. 
A very few prices were reported from Greece during 1985/86. The 
average was 95% of the guide price, 20% higher than the previous wine 
year. This situation continued in 1986/87, with an average of 97% of 
the guide price. 
Spanish prices, reported from 1 March 1986, remained low, at an average 
of 63% of the guide price/ During 1986/87 they fell even further to a 
trough of 52% in January, before recovering to end the wine year at 
73%. The Community representative price waa much affected by Italian 
prices over both wine years. 
As regards German table wines, prices for white wines began well before 
weakening towards the end of 1985/86. They peaked in December at 128% 
of the guide price for wines of type A II and 104% for A III, before 
collapsing to 65% for A II and 79% for A III in August 1986. They 
continued to fall during 1986/87, finally steadying at around 50% for 
type A II and 68% for A III. 
Red wine prices were much steadier: the average for 1985/86 was well 
above that of the previous year (+ 36%), at 216% of the guide price. 
Prices fell back slightly during the following wine year, but were 
still high at 186% of the guide price. 
2.2.2. Community intervention 
Most intervention in the wine sector is covered by Community 
legislation (Regulation (EEC) No 822/87) and concerna the following 
products: grape juice and must (with or without added sugar), grape 
must in fermentation, table wine produced from freah grapes, fresh 
grapea other than table grapes, wine vinegar, etc. 
1. Export refunds 
Refunds may be granted to aid exports. They may be varied according 
to destination. 
- 33 -
For the financial year 1985 export refunds amounted to ECU 18.9 
million (2% of expenditure in the wine sector). In 1986 refunds 
amounted to ECU 11.1 million, 41.3% less than in 1985. 
Appropriations for refunds in 1987 amounted to ECU 46 million, or 
3.6M of wine sector expenditure. 
2. Private storage aid and aid for re-storage of table wine and grape 
must 
The aim here is to freeze availabilities on the market for a certain 
time, by encouraging growers to store products in return for aid. 
There are two kinds of private storage contract: 
* long-term contracts: these are possible when, at the beginning of 
the wine year, availabilities exceed likely requirements by four 
months' supply. Table 28 shows that in 1985/86 long-term 
contracts were included for 14.6 million hectolitres, and in 
1986/87 for 18.7 million (Spain now being included), an increase 
of 28%; 
* four-month contracts, complementary to long-term contracts: these 
are possible at the expiry of long-term contracts if market prices 
remain below the activating price for three consecutive weeks. In 
1985/86 four-month contracts covered a total of 1.9 million 
hectolitres and in 1986/87 only 0.5 million, a decrease of 73%. 
In financial terms, private storage aid in 1985 represented ECU 87.6 
million and, in 1986, ECU 65.9 million, a fall of 24.8%. It 
accounted for 9.5% of total wine aector expenditure in 1985 and 
10.3% in 1986. 
3. Distillation 
Quantities available at the beginning of the wine year (carry-over 
stock of 99 million hectolitres in 1985/86 in the Community of Ten 
and 123.7 million hectolitres in 1986/87 for the Community of 
Eleven, together with a harvest of 142.7 million hectolitres in 
1985/86 and 200.1 million in 1986/87) and the high levels of 
availabilities resulting therefrom led the Community to have 
recourse, as in 1984/85 for the Community of Ten, to the 
distillation measures provided for in Community rules. 
- 34 -
The amounts of wine distilled with Community aid, as reported by the 
Member States, totalled 24.3 million hectolitres in 1985/86 and 40 
million in 1986/87, an increase of 64.6%. Among the main 
market-regulating measures, a distinction should be made between 
compulsory and optional distillation (see Table 29). 
- Compulsory distillation 
- Compulsory distillation of the by-products of winemaking 
("prestations viniques" 
This compulsory distillation of marc and wine lees is designed 
to avoid the overpressing thereof and the marketing of poor 
quality wines with a low natural alcoholic strength. In 1985/86 
a total of 2.4 million hectolitres of wine were thus distilled, 
and in 1986/87 some 3 million hectolitres, including lees in 
Spain. 
- Compulsory distillation of wines other than table wines 
This concerns surplus wine in the Cognac area and wine produced 
from table grapes and from dried grapes etc. Over the last two 
wine years the volume concerned has been 3 million hectolitres 
of wine. 
- Compulsory distillation of table wines 
This is the distillation provided for in Article 39 of 
Regulation (EEC) No 822/87. The total quantity to be distilled 
is shared between the various wine-growing regions of the 
Community, grouped together by Member State, on the basis of the 
difference between production in each region during the year in 
question and 85% of average production in 1981/82, 1982/83 and 
1983/84. Each producer liable to compulsory distillation 
distils a quantity which varies with his yield, allowing for 
difference between the various parts of the Community. In 
1985/86 the amount of wine distilled under Article 9 of the 
baaic Regulation on wine was 3 million hectolitres; in 1986/87 
it waa 10.3 million hectolitres, an increaae of 245%. 
- 35 -
- Optional distillation 
- "Garantie de bonne fin" distillation for long-term storage 
contract holders 
The aim here is to guarantee growers that their wine will not be 
disposed of at less than the activating price, if they have 
concluded long-term storage contracts. 
This was introduced in 1976/77 as a temporary support measure 
but it has since become a permanent fixture. 
It provides guaranteed price support and has now been limited to 
a percentage of the contract-holder's total production of table 
wines (15% for 1984/85, 13% for 1985/86 and 10% for 1986/87). 
In 1985/86 this form of distillation accounted for 9.5 million 
hectolitres, and in 1986/87 for 7.2 million, a fall of 24%. 
- Preventive distillation 
At the beginning of each wine year the Commission may introduce 
this form of distillation, at 65% of the guide price for each 
type of table wine. In 1985/86 this accounted for 6 million 
hectolitres and in 1986/87 for almost 13 million. 
Since 1984/85 quantity limits have been imposed on each 
producer, the present limit being 13% of most producers' output, 
- Support distillation 
During any wine year in which compulsory distillation has been 
resorted to, the Commission is to provide automatic access to 
distillation at a fixed guaranteed price of 82% of the guide 
price for each type of wine. 
In 1985/86 this form of distillation accounted for 1.8 million 
hectolitrea and in 1986/87 for 3.6 million. 
Distillation is the main way of disposing of wine surpluses in the 
Community. Surpluses amounted in 1985/86 to 21.3M, and in 1986/87 
to 26.8%, of total output of table wine. They are liable to persist 
if not increase in coming years. 
- 36 -
Table 27 shows that total EAGGF Guarantee Section expenditure on the 
wine sector for the financial year 1986 amounted to ECU 635.6 million 
as against 921.4 million in 1985, a fall of 45%. These figures 
represent 2.87 and 4.64% in 1986 and 1985 respectively of total 
Guarantee Section expenditure, ignoring any reductions in expenditure 
after clearance of the 1986 accounts. The various measures adopted 
have thus led to a fall in expenditure on the wine sector. 
On 8 December 1986, following the serious crisis in the wine sector in 
Italy because of the scandal concerning wine adulterated with methanol, 
the Council adopted a decision on the granting of certain national aid 
for distillation in the wine sector in Italy, up to a maximum quantity 
of 2.5 million hectolitres of table wine and 170 000 hectolitres of 
white table wine, resulting from the downgrading of Moscato d'Asti 
D.O.C. wines. 
2.3. Prospects for" wine consumption up to 1992 
Export strategies cannot be based on too global a view of the world 
wine market but rather on an analysis, if not by country, then at leaat 
by major consumption area. 
World consumption of wine over the next few years would seem to be due 
to fall steadily. In the major consumer countries there is an 
appreciable diminution - by between 1 and 4% per year in Italy, Franca, 
Spain and Portugal. The same is the caae in South America (Argentina, 
Chile). 
In much of western Europe consumption is steady or rising slightly: 
between 0.3 and 1% per year in Belgium, Luxembourg, Germany, 
Switzerland and Austria. In the monopoly countries of northern Europe 
- Sweden, Norway, Finland - consumption is rising slowly but surely, by 
3 to 4% per year. 
In Denmark and the Netherlands consumption may well continue to expand 
at its present rate of 4% and 4.1% per year respectively. In the 
united Kingdom the prospects are generally excellent (a rise of 6.4% 
per year). 
In other English-speaking countries, consumption is still low, as the 
habit of drinking wine has only recently caught on, during the 1970s. 
Consumption in these markets is likely to increase distinctly, at 
annual rates between now and 1992 of 3.3% in the United States, 4.3% in 
Canada and 6% in Australia. 
- 37 -
In Asia the markets are as yet very small but consumption is rising 
steadily and will continue to do so over the years to come: Japan • 
0.7 litres per head per year in 1982, 0.85 litres in 1984. 
Consumption is still high in the traditional producer countries of 
southern Europe, where until the last few years wine was always 
considered as an absolute staple, just like bread. Since 1975, 
however, the amount, particularly of table wine drunk has tended to 
fall across the board. There are a number of reasons for this: 
- the spread of sedentary employment; 
- a change in consumption habits particularly amongst the young 
(expansion of soft fizzy drinks and mineral waters); 
- the impact of campaigns against alcoholism. 
Thus, total consumption in France and Italy has fallen over the last 
ten years by more than 21 million hectolitres, and in Spain by about 6 
million. The trend in Portugal is less clear cut. 
2.4 Conclusion 
On the basis of total domestic consumption, taking the various 
Community-financed distillation measures into account, the Community's 
degree of self-sufficiency was 102.2% in 1985/86 and 102.3% in 1986/87, 
as against 97.1% in 1984/85. 
If we disregard these distillation measures, the rate becomes 123.6% in 
1985/86 and 145.2% in 1986/87, as against 121.2% in 1984/85. This is 
less than the figure for 1979/80, when production reached an all-time 
high. 
The outlook is thus very worrying. If we extrapulate the above trends 
- a steady fall in consumption per head of table wine in the main 
producer countries, and a limited rise in the other Member States, with 
a considerable surplus of supply over demand - we have to conclude that 
overall demand for wine in the Community of Twelve, including net 
exports and quantities processed without Community aid, is likely to 
be, by 1993/94, something like 155 million hectolitres. 
- 38 -
Production at levels of 210 to 215 million hectolitres would thus 
exceed consumption by some 55 to 60 million hectolitres and, unless it 
were possible to expand consumption in the countries where it is at 
present low, to stem the fall in consumption in the producer countries 
or to increase exports, large quantities of wine would still have to be 
distilled. 
On 28 and 29 March 1988 the Council meeting on agriculture adopted a 
number of decisions aimed at bringing wine-growing potential more in 
line with requirements. There were two aapacta to these decisions: 
one concerning markets, involving amendments to Regulation (EEC) No 
822/87 aa regards two pointa concerning compulsory distillation 
(Article 39): 
1. a harmonization of the scales to be applied in the various 
regions of production enabling high yields to be penalised more 
in all Member States and laying down a yield threshold which may 
be varied depending on the volume to be distilled and the 
quality policy of the Member State concerned; 
2. a reduction in the price paid in the event of compulsory 
distillation; 
one concerning structures, with the introduction of new arrangements 
for grubbing-up (Regulation (EEC) No 1442/88). 
A link has also been established between compulsory distillation and 
the grubbing-up of vineyarda: in order to make permanent abandonment 
of vineyarda more attractive, growers who reduce their area under vines 
significantly are to be exempt from the obligation to distill. 
- 39 -
3. INTRA-COMMUNITY TRADE AND EXTERNAL TRADE 
During 1985/86 the Community of Ten's internal trade and its trade with 
the outside world in wine continued previous trends in two respects: 
- intra-Community trade still dominated overall trade (82.7% - see 
Table 13); 
- imports persisted at a level in line with the 1970-1980 average 
(4.16 million hectolitres - see Table 15). 
Export8, however, which had made steady progress from 1976/77 onwards 
to reach 10.2 million hectolitres in 1984/85, fell back by 16.2% in 
1985/86 to 8.5 million (see Table 18). 
The external trade figures for 1985/86 show a positive balance of 4.4 
million hectolitres against 5.7 million in 1984/85, a fall of 23%. The 
reduction is accounted for mainly by the United States and the Soviet 
Union, and is mainly caused by the effects of the system of export 
refunds, which lose the Community a significant share of the world 
market, specifically as regards the Soviet Union and certain countries 
in Africa. 
During 1986/87 trade within the Community of Twelve increased 
substantially to 23 million hectolitres, from 19.8 million in 1985/86, 
a rise of 16.2%. 
Intra-Community trade in 1986/87 was distintly higher as a percentage 
of total imports than in 1985/86 (93.9% against 82.7%). 
Imports of wine from outside the Community fell considerably, by 64.2% 
as againat 1985/86, to 1.5 million hectolitres in 1986/87. This is 
because Spain and Portugal were no longer considered as non-Community 
countries (see Table 15). 
Exporta of wine to destinations outside the Community rose to nearly 11 
million hectolitrea in 1986/87 against 8.5 million in 1985/86, a rise 
of 29.4% (see Table 18). 
- 40 -
Net exports in 1986/87 amounted to 9.5 million hectolitres, as against 
4.4 million in 1985/86. The increase was accounted for mainly by 
Scandinavia, Switzerland, Austria* Canada and Japan. On the other 
hand, exports to the Soviet Union, which had begun to fall in 1984/85, 
went down further, from 84 162 hectolitres in 1985/86 to 1 611 
hectolitres in 1986/87. Exports to the united States also fell, from 
3.8 million hectolitres in 1985/86 to 3.2 million in 1986/87, a fall of 
15.6%. 
3.1. Intra-Communlty trade 
Tables 10 and 11 show that in 1985/86 total trade between the countries 
of the Community of Ten fell to 19.8 million hectolitres as against 
23.2 million in 1984/85, a fall of 14.5%, this being mainly due to 
lower shipments from Italy, which want from 12.2 million hectolitres in 
1984/85 to 8.4 million in 1985/86. 
In 1986/87, trade within the Community of Twelve amounted to 23 million 
hectolitres, much the same as in 1984/85 and an increase of 16.1% on 
1985/86. 
Since 1985/86 France has been the main supplier country for 
intra-Community trade, by winning the market share lost by Italy 
because of the methanol affair. 
Shipments from France increased from 7.8 million hectolitres in 1984/85 
to 8.7 million in 1985/86, a rise of 10.8%. They represented 43.6% of 
exports within the Community of Tan. 
In 1986/87 French exports increased to 9.5 million hectolitres, a 
further rise of 9.9% on 1985/86 and 41.3% of the market of the 
Community of Twelve. 
France's main customers in 1985/86, in decreasing order, were Germany 
(3.7 million hectolitrs or 42%) followed by the united Kingdom (2.0 
million or 23%) and the BLEU (1.22 million or 13%). All these 
increaaed their purchases appreciably. 
- 41 -
In 1986/87 French shipments to other Community countries broke down as 
follows: Germany - 4.1 million hectolitres or 43.6%; United Kingdom -
2.1 million hectolitres or 22.7%; BLEU - 1.3 million hectolitres or 
13.7%; the Netherlands - 1 million hectolitres or 10.7%; Denmark - 0.6 
million hectolitres or 6.5%; Italy - 0.2 million hectolitres or 2%. 
Italian shipments in 1986/87 amounted to 7.9 million hectolitres, a 
fall of 5% aa against 1985/86. They broke down as follows: France -
3.4 million hectolitres or 42.5%; Germany - 3.2 million hectolitres or 
41%; United Kingdom - 0.9 million hectolitres or 11.2%; BLEU - 0.2 
million hectolitres or 2.7%; Netherlands - 0.1 million hectolitres or 
1.7%. 
As regards German shipments to other Community countries, there was a 
particularly large decrease in 1985/86 as against 1984/85, from 1.99 to 
1.7 million hectolitres, a fall of 13%. 
The figure for 1986/87 was 1.8 million hectolitres, going mainly to the 
United Kingdom (1.4 million hectolitres or 75%), the Netherlands (0.2 
million hectolitres or 14.2%) and Denmark (0.1 million hectolitres or 
6%). 
In 1986/87 intra-Community trade in wine broke down as follows by 
importing state: Germany - 8.1 million hectolitres or 35.4%; United 
Kingdom - 5.3 million hectolitres or 23.3%; France - 4 million 
hectolitres or 17.5%; Netherlands - 2 million hectolitres or 9%; BLEU -
1.8 million hectolitres or 8.1%; Denmark - 0.95 million hectolitres or 
4.1%; Italy - 0.4 million hectolitres or 1.9%? Ireland - 0.1 million 
hectolitres or 0.6%; Spain - 0.029 million hectolitres or 0.1%. 
Imports by Greece and Portugal are almost insignificant. 
3.2. External trade 
3.2.1. Imports 
In 1985/86 Spain and Portugal were still the Community's main suppliers 
with 2.7 million hectolitres (Spain 1.8 million, Portugal 0.9 million), 
accounting for 65% of total imports. They were followed by Yugoslavia 
(575 000 hectolitrea or 14%), Hungary (181 000 hectolitrea or 4%), 
Bulgaria (104 000 hectolitrea or 2.5%) and Romania (75 000 hectolitrea 
or 1.8%). Imports from the Maghreb countries (Algeria, Morocco, 
Tunisia) were 212 000 hectolitrea or 5% of the total. 
v TN-2^ 
- 42 -
Table 10 shows that imports of wine from outside the Community amounted 
in 1986/87 to 1.5 million hectolitres, as against 4.2 million in 
1985/86. This is due to the inclusion of Spain and Portugal in the 
Community of Twelve. 
The breakdown by country in 1986/87, as revealed by Table 17, is as 
follows: the main importer is Germany (762 594 hectolitres), followed 
by the united Kingdom (427 171 hectolitres), France (132 840 
hectolitres), the BLEU (92 567 hectolitres), Denmark (39 102 
hectolitres), the Netherlands (25 174 hectolitres), Italy (5 018 
hectolitres), Ireland (2 070 hectolitres), Spain (1 381 hectolitres), 
Greece (159 hectolitraa) and Portugal (119 hectolitres). 
In 1986/87 Yugoslavia became the Community's main supplier, with 582 
829 hectolitres or 39.1% of the total, followed by Hungary (157 000 
hectolitres or 10.5%), and Bulgaria (146 000 hectolitres or 9.8%). 
Noteworthy was the fall in imports from Austria, from 321 000 
hectolitres in 1984/85 to 25 796 in 1986/87, following the diethylene 
glycol affair. The Maghreb countries accounted for 203 313 
hectolitres, 13.6% of the total. 
3.2.2. Exports 
Table 19 shows that exporta by the Community of Ten, rising regularly 
since 1976/77, reached a record of 10.5 million hectolitres in 1981/82, 
followed by a fall to 8.6 million in 1982/83 and something of a 
recovery in 1983/84 (9 million). This increase continued in 1984/85 
(10.2 million), but in 1985/86 Community exports were falling back 
again by 16.2% to 8.5 million hectolitres in 1984/85. 
By country, France became the main exporter on to the world market in 
1985/86, with 3.8 million hectolitrea, Italy falling to 3.6 million 
(from 4.8 million in 1984/85, a 25.2% fall). Germany fell by 26.2% 
(804 000 hectolitrea as against 1 090 000 in 1984/85). Then came 
Greece, falling by 31.4% from 430 000 hectolitres in 1984/85 to 295 000 
in 1985/86. 
In 1986/87 exports from the Community of Twelve amounted to 10.9 
million hectolitres. 
- 43 -
In 1985/86 Japanese purchase amounted to 139 478 hectolitres, strongly 
down on the previous year (226 605 hectolitres), but in 1986/87 the 
trend reversed and Japanese imports rose to 298 932 hectolitres. 
Community exports to the Soviet Union fell from 658 247 hectolitres in 
1984/85 to 84 162 hectolitres in 1985/86, and then again to 1 611 
hectolitres in 1986/87. This was a consequence of the anti-alcohol 
campaign adopted by the Soviet authorities in May 1985. 
France remained the leading exporter, with 3.6 million hectolitres; 
Spain accounted for 3 million, while the position of Italy continued to 
fall on export markets, with 2.8 million hectolitres, 22.2% down on 
1985/86. Germany fell by 18.3% (656 690 hectolitres), while Portugal's 
exports amounted to 557 842 hectolitres and those of Greece to 146 157 
hectolitres. 
The United States remained the Community's main customer, with 3.2 
million hectolitres, but this was 15.6% down on 1985/86 (3.8 million). 
Switzerland, with 1.6 million, was appreciably up (42%) on the 
preceding year. It was followed by Canada, with 1.2 million 
hectolitres, 4.2% up on 1985/86 (1.1 million), and Sweden, with 0.8 
million (up 41%). 
Conclusions 
Although since 1976 Community exports had been rising at an average 
annual rate of 8.3%, reaching 10.2 million hectolitres in 1984, the 
figure for 1985/86 fell back to 8.5 million hectolitres. In 1986/87 
Spain and Portugal having joined the Community, exports amounted to 
10.9 million hectolitres - Spanish and Portuguese exports may be seen 
as compensating for the collapse in Italian shipments following the 
discovery of methanol in certain Italian wines, necessitating strict 
quality control measures on exports. 
It is nonetheless necessary to refer to the main explanations which 
have been put forward for the poor results achieved on external markets. 
- 44 -
Firstly, trade in wine is concentrated strongly on the OECD countries; 
it makes up a commercial system based on reciprocal free trade, which 
alone is not enough to trigger growth in export flows. Secondly, there 
are appreciable difficulties in making sound forward estimates, because 
of a number of unforeseeable factors and also the uncertainty as 
regards sales up to 1992. 
In addition, trade in wine is handicapped by alackening demand from our 
commercial partners and also by protectionist measures. These include 
tariff barriers (Eastern bloc, developing countries) and ad valorem 
customs duties (Eastern block, developing countries, Japan) and 
domestic taxation systems which are so applied aa to discriminate 
against imported products in favour of home-produced ones. The 
prohibitive level of customs and excise duties in certain countries 
serves as a brake on consumption and thus on imports, either for 
reasons of public health (Scandinavia) or of religion (Islamic 
countries), or simply for protectionist reasons. 
Indirect protectionism and non-tariff barriers include the following: 
- quality control measures; 
- health standards; 
- import quotas of wines above a certain price; 
- quantitative restrictions on certain types of wine, or during 
certain period; 
- cumbersome administrative procedures and bureaucratic delays; 
- anti-alcohol campaigns directed at consumers. 
The result is often that Community wine is not competitive, especially 
with new beverages. This is frequently exacerbated by inadequate 
marketing and promotion of Community wines. 
The Community's main customer is the United States, and any increase in 
exporta to it will depend on the exchange rate of the dollar, and on 
whether any American trade legislation is implemented involving 
protectionist aspects reinforcing the possibilities for ecourse to 
unilateral measures. The Trade Bill allows unilateral application of 
retaliatory measures on purely American criteria. A further risk which 
must be mentioned is that such measures might become automatic, so that 
the Community'8 negotiating margin would be reduced by the door being 
opened to lobby pressure. The main issue, however, is the current GATT 
negotiations, especially their agricultural aspect. 
- 45 -
In addition to all these obstacles there are also those deriving from 
such practices as improper use of famous designations of origin or 
traditional geographical ascriptions. This is particularly common in 
Australia, South Africa and Japan, and somewhat less so in the United 
States (some progress has been made with the latter country under the 
Wine Accord of 1984). 
We must not give the impression that if obstacles to trade were removed 
the problem of Community surplus production would be resolved. While 
these obstacles should indeed be eliminated, it is nonetheless true 
that consumption habits are rooted in sociological, climatic and indeed 
religious features of the lives of our trading partners, and they 
constitute a major brake on the expansion of the Community's trade. 
- 46 -
4. DISPOSAL OF WINE ALCOHOL 
When in 1982 the Council revised the intervention system in the wine 
sector, introducing compulsory distillation at a fairly low price, it made 
the Community responsible for disposing of the alcohol from compulsory 
distillation of wine (under Articles 35, 36 and 39 of Regulation (EEC) No 
822/87) held by intervention agencies. Disposal of wine alcohol from 
voluntary distillation remained a national responsibility. Quantities of 
alcohol held by intervention agencies by virtue of voluntary distillation 
are not yet liable to be reported to the Commission. It is possible, 
however, to form an appropriate idea of them: 
Quantities of wine distilled under voluntary distillation, in hectolitres: 
1983-1984 32 495 000 
1984-1985 20 375 000 
1985-1986 17 288 000 
1986-1987 23 734 000 
1987-1988 27 714 000 
Assuming average yield of alcohol to be 10%, total quantities for the five 
wine years can be estimated at 12 160 000 hi of alcohol, plus 
undisposed-of stocks from previous years. 
The quantities to be disposed of each year other than through normal 
channels amount to a total of between 2 and 3 million hi, but this figure 
will fall with the changes currently being made to the system. 
As regards wine alcohol the disposal of which is a national 
responsibility, attitudes vary between Member States. In France, the 
Government, through the Société des Alcools Viticoles, puts up for sale 
and is able to sell, depending on market openings, amlost all the alcohol 
produced in France, though admittedly this is because the State budget 
assumes any losses. In Italy, AIMA succeeded at the third try in selling 
for export, at a very low price of 4 to 7 ECU/ha, a large batch of some 
5.2 million hi, but since then has been accumulating stocks of wine 
alcohol. In Spain stocks built up before accession have been disposed of 
but the Government has not yet taken a decision for the sale of wine 
alcohol which its intervention agency ia authorized to buy, and stocks are 
therefore now accumulating. 
National sales, particularly by France, on a email and saturated world 
market are bound to cause problems for such sales as the Community has to 
organize. 
- 47 -
The heart of the problem is thus that the Member States have every 
opportunity to reduce to the minimum the Commission's freedom to sell 
Community stocks, as they themselves have alcohol-producing industries to 
protect and large stocks to sell, both of these factors obtaining together 
in some cases. 
It was, however, only in 1986 that the Council adopted a Regulation laying 
down general rules for the disposal of this alcohol (1). Although these 
rules were only for a limited period (until the end of 1986), they gave 
the Commission the opportunity to acquire a certain experience by twice 
trying to sell some of the stock of alcohol. 
Although the experience bore no fruit, it did show how cumbersome were the 
mechanisms set up, and specifically the procedure for selling alcohol from 
compulsory distillation under Article 39 of Regulation (EEC) No 822/87, 
which made it impossible to dispose of even small quantities on the normal 
markets for alcohol at the price ruling on those markets. 
When, at the meeting of the European Council in Brussels in February 1988, 
it was decided to introduce agricultural stabilizers, a number of changes 
were decided upon in the rules governing the wine sector. Intervention 
was made more restrictive, by a significant reduction in the price for 
compulsory distillation, and specifically distillation of table wines. At 
the same time, grubbing up premiums were increased, in order to reduce 
wine-growing potential. 
In the medium term at least, this should guarantee a better balance 
between supply and demand in the wine sector, where for several years now 
the trend has been for output of table wine to increase while demand for 
it has been falling markedly. 
The Community has to deal with a burden inherited from the past in the 
form of existing accumulated stocks of alcohol from the various compulsory 
distillation measures provided for in the way of market support in the 
existing rules. 
(1) Regulation (EEC) No 139/86 - OJ No L 19, 25.1.1986, p. 1. 
- 48 -
The problem of alcohol stocks is going to get worse for some time. At 
end September 1988 stocks amounted to some 9.2 million hi, increasing by 
2.5 million per year, and falling into two categories: 
(a) purely "public" stocks (end August 1988: 2.5 million hi), produced 
under compulsory distillation (Article 39 of Regulation 822/87) and 
thus qualifying for an EAGGF contribution to all expenditure 
(technical, financial, disposal) on storage of such alcohol; 
(b) mixed stocks (end August 1988: 6.7 million hi), from distillation 
measures provided for in Articles 35 (deliveries of by-products of 
wine-maing) and 36 (distillation of wine other than table wine), where 
the EAGGF defrays only disposal costs. 
In July 1988 the Commission put to the Council a proposal for a Regulation 
laying down general rules on the disposal of wine alcohol (C0M(88)422). 
The burden of that proposal is that alcohol from both of the above types 
of stocks be treated alike as regards disposal procedures. 
Provision is made for the award of tenders by the management committee 
procedure, in order to ensure equality of treatment of interested parties, 
wherever they are established in the Community. 
In order not to disturb the market the disposal measures laid down in the 
rules now proposed would have to cover further end-uses, which in the case 
of the Community means fuel, without excluding sale for other purposes. 
The rules provide for no minimum price, but the Commission reserves the 
right not to accept any of the offera made. 
- 49 
5. CONCLUSIONS 
The surplus we now see on the table wine market is due to two main 
factors, which have acted in turn. First, until about the end of the 
1970s, consumption was practically level while production was increasing 
substantially, disturbing the precarious balance which obtained when the 
market organization was set up. This rise in production has now been cut 
back, almost to vanishing point, and the main reason for the imbalance is 
now the fall in consumption. This is likely to continue, with consumers 
preferring quality to quantity. 
Extrapolating from current trends*, we have on the one hand a fall in the 
total area under vines, leading to a total area of less than 3.5 million 
ha in the Community of Twelve by 1993, and on the other hand, a constant 
total production level, due to an increase in average yield. 
If we look at the trend in total internal consumption of wine, ignoring 
quantities distilled under the various intervention measures, the annual 
fall emerging from the figures available is some 2 to 3% per year. For 
the Community of Twelve, this gives a total of some 110 or 120 million hi 
in 1993, as against production of some 180 million hi. 
There are of course projections on the basis of currently available 
figures and thus do not allow for the effect of the measures adopted 
within the framework of the agricultural stabilizers, the purpose of which 
is precisely to stem these trends. 
If we look at total internal consumption, including wine distilled, the 
Community's degree of self-sufficiency was 102.3% in 1986/87 as against 
102.2% in 1985/86. Ignoring wine distilled, the figures are 145.2% in 
1986/87 and 123.6% in 1985/86. 
Obtained by linear regression from figures for 1980/81 to 1986/87. For 
Spain the same rate of fall in areas under vines as in the Community of 
Ten has been assumed from 1985/86, while in the case of Portugal, where 
structural measures for grubbing-up vineyarda do not apply, areas have 
been considered constant. 
- 50 -
Per capita consumption is falling in the main producer countries and there 
is only limited expansion of consumption in the other Member States, so 
that supply is well in excess of demand. We have to conclude from this 
that, unless consumption is expanded in countries where it is still low 
and exports are increased, large quantities of wine will still have to be 
distilled. 
This means that we need to review our wine-growing potential in order to 
bring it in line with requirements. The structural surplus in table wine 
may currently be estimated at more than 30%, and this can only increase if 
there are no changes in market management and the control of production 
potential. This laat is the main point on which efforts should be 
concentrated, aa it is high yields which lead to structural surplus and 
poor quality. 
At the end of this report on foreseeable trends in the planting and 
replanting of vineyards in the Community and on the balance of production 
and consumption in the wine sector, for 1985/86 and 1986/87, we may draw a 
number of conclusions. 
The alterations to short-term market management measures decided upon by 
the Dublin European Council in 1984, involving intervention distillation 
(preventive distillation, "garantie de bonne fin" distillation, compulsory 
distillation, "support" distillation), has not led to any permanent 
rebalancing of the market, aa the effect of these measures has been 
countered by factors working in the opposite direction which have been too 
large: constantly increasing yields from areas under vines, an increase 
in output of wine through technical progress and a continual fall in 
consumption in certain producer countries, which over the last 10 years 
has not any more been made up for by any increase in the other Member 
States. The principal instrument for regulating the table wine market is 
distillation, and in 1985/86 a total of 24.3 million hectolitres were 
distilled. In 1986/87 the figure was 39.6 million hectolitres. 
The structural measures adopted by the Council since 1976 (granting of 
premiums for temporary and permanent abandonment and premiums for 
renouncing replanting rights, premiums for cessation of wine-growing in 
France and Italy, measures to restructure vineyarda aa part of joint 
operations) have had only modest results and have not really achieved any 
qualitative or quantitative redirection of Community wine production. The 
persistent imbalance on the wine market lad the Council to reinforce its 
structural policy by means of Regulation (EEC) No 777/85, but experience 
in trying to reduce production in line with demand has made it absolutely 
necessary to implement new measures. 
- 51 -
The new approaches decided upon at the European Council meeting in 
Brussels on 11, 12 and 13 February 1988, and the decisions by the Council 
which followed, are for the introduction of new stabilizers and the 
strengthening of existing ones in order to re-establish the balance 
between supply and demand on the Community market. The aim is to achieve 
better coordination between measures providing generalized support for 
markets and prices and measures of a structural nature. 
As regards the stabilizers, an initial series of measures was to reinforce 
the arrangements for definitive abandonment (Regulation (EEC) No 
1442/88); a second series was to penalize excessive yields by making 
compulsory distillation sufficiency unattractive. 
Council Regulation (EEC) No 1442/88 of 24 May 1988 is one of the measures 
to reinforce permanent abandonment, in that it provides for extending the 
possibility to all areas under vines (including quality wines psr). It 
provides for differentiation according to yields and an increase of up to 
20% in grubbing premiums for vineyards with high yields, preferential 
distillation arrangements leading to partial or total exemption from 
compulsory distillation for growers subject to the new grubbing 
arrangements - total exemption if the area grubbed represents more than 
50% of the holding's wine-growing potential - and a system of advances 
allowing payment of premiums to producers to be speeded up. 
For 1988/89 the Council kept the same price levels as before, and it 
introduced amongst the related measures a ban on national aid for the 
planting of vines. 
Reform of the market must be brought about rapidly but in a lasting way: 
this can be achieved only if measures to discourage high yields and 
structural measures are integrated. Measures to discourage high yields 
must necessarily be accompanied by a decrease in areas under vines. There 
is no way we can avoid the need to strengthen and adapt the measures for 
voluntary abandonment, which have not so far yielded the results 
anticipated. 
The Commission remains convinced that a solution must be found for a 
situation which is becoming intolerable, not only because of the growing 
budgetary burden represented by the wine sector, but also for a reason 
internal to that sector: the very great downward pressure on prices which 
the surplus exercises is very damaging, especially to producers of wines 
of higher quality, production of which should on the contrary be 
encouraged. 
- 52 -
There is, in addition, every reason for anticipating already measures to 
get rid of the "burden of the past", that is to say, existing stocks of 
alcohol from the various distillation measures provided for in the 
existing rules for purposes of market support. 

Commission of the European Communities 
COM(89) 138 final 
Communication from the 
COMMISSION TO THE COUNCIL 
on foreseeable trends in the planting and replanting of vineyards in the 
Community and on the balance of production and consumption in the 
wine sector (1985/86 and 1986/87) 
31.3.1989 
Office for Official Publications of the European Communities 
L - 2985 Luxembourg 
Series: DOCUMENTS 
1989 - 56 pp. - Format: 21.0 * 29.7 cm 
EN 
ISSN 0254-1475 
ISBN 92-77-48856-5 
Catalogue number: CB-CO-89-163-EN-C 
'•$** *f 
ISSN 0254-1475 
COM(89) 138 final 
DOCUMENTS 
Communication from the 
COMMISSION TO THE COUNCIL 
on foreseeable trends in the planting and 
replanting of vineyards in the Community and on 
the balance of production and consumption in 
the wine sector (1985/86 and 1986/87) 
03 
Catalogue number: CB-CO-89-163-EN-C 
ISBN 92-77-48856-5 31.3.1989 
€ 
COMMISSION OF THE EUROPEAN COMMUNITIES