“There is an imbalance between supply and demand, which reduces income, and we want good earnings for the producer,” said José Manuel Fernandes while speaking to journalists in Vila Real.
Throughout the region, there are complaints and alerts from producers who fear they will not be able to sell their grapes this harvest or will have to accept low prices, whereas merchants complain of full stocks and decreased wine sales.
The Ministry of Agriculture and Sea has prepared an action plan for sustainable management and enhancement of the wine sector in the Douro Demarcated Region (RDD), with integrated actions for reducing surpluses, adjusting productive potential, and strengthening value creation.
José Manuel Fernandes stated that the working document will gather contributions from the interprofessional council of the Douro and Port Wines Institute (IVDP) and from RDD mayors, following the measures implemented by the Government last year.
He added that he wants everything ready by “August.” The harvest begins in August, peaking in September.
One of the measures under consideration is to use “wine grapes for distillation,” aiming to reduce wine surpluses in the RDD by channeling surplus grapes and directly ensuring a minimum income for the grower.
“The goal is to distill for brandy but with a commitment to reducing production to balance supply and demand,” the minister noted.
As the extent of producer adherence is unknown, along with the quantity of grapes for distillation and the final amount, the measure requires adjustment but will be managed by the IVDP. It involves a prior contract between the grower, winemaker, and distiller, with the application deadline set for September 15.
The brandy produced will be integrated into batches for mandatory certification by the IVDP.
In a resolution submitted this week to parliament, the PSD recommended government support funded by the State Budget of up to 15 million euros through direct aid to RDD growers, guaranteeing at least 50 cents per kilo of grapes delivered for distillation.
The minister indicated that the final amount “will depend on the number of kilos of grapes going for distillation” and that this measure will also involve the Ministry of Finance.
“We do not exclude the possibility of using Douro brandy, which can be an asset, but it must not jeopardize existing stocks or harm producers and raise wine prices,” he added.
The plan “is comprehensive,” also considering crop substitution, specific actions for cooperatives, labeling, enhancing wine movement controls within the RDD, and a multi-year program for promoting and internationalizing wines.
“This territory has significant tourist attractiveness due to the Douro and the vineyards. The tourist tax should contribute a portion to the producers,” the minister advocated.
José Manuel Fernandes opined that the PSD/CDS Government “did more” for the Douro in one year “than the PS over its years of governance,” criticizing the socialists for “unacceptable withholdings” and allowing distillation of wine imported from outside Portugal.
“They bought at 15 cents and distilled at 45; quite a business. I do not engage in ventures or tricks; taxpayer money must be handled with utmost seriousness and put to good use,” he emphasized.
