At the end of August, the government approved an action plan for the sustainable management and promotion of the viticulture sector in the Douro Demarcated Region (RDD), including the “grapes for wine distillation” measure aimed at this year’s harvest.
The Ministry of Agriculture and the Sea stated that the plan “prioritizes small producers,” providing immediate income support calculated at 50 cents per kilo of grapes, up to a maximum of 1,125 euros per hectare, “complying with European competition rules.”
This measure has a maximum allocation of 15 million euros, and winegrowers submitted their applications by September 25.
A ministry source informed Lusa news agency that 2,607 applications were submitted and evaluated by the Board of Directors of the Douro and Port Wine Institute (IVDP) in a meeting held on October 3.
Out of the applications submitted, 2,046 were approved, corresponding to 2,024 winegrowers, with a total maximum amount of 3.6 million euros.
The government plan was approved following complaints and alerts from Douro producers unable to sell their grapes or sell them at low prices, while traders pointed to full stocks and declining wine sales.
The ministry noted that this year’s harvest in the Douro Demarcated Region saw a drop in grape production primarily due to mildew issues in mid-May and June, as well as unusually high heat and drought in July and August.
It further stated that the action plan emerged from the “clear diagnosis” that “there is currently a structural imbalance between production and demand, threatening income and the sector’s sustainability.”
“We aim to promote balance with immediate and structural measures, so the Douro viticulture, one of the world’s most demanding, can produce safely, enhance its market value, and ensure that every bunch delivered is part of a balanced and solid system,” stated the ministry led by José Manuel Fernandes.
The plan also extends beyond immediate measures, proposing structural and medium-term initiatives to “transform the Douro’s production model.”
Among these measures are voluntary reductions in the vineyard area suitable for Port wine production, incentives for conversion to other crops, strengthening cooperatives, modernizing facilities, achieving energy autonomy, and enhancing technical training.
Finally, the Ministry of Agriculture and the Sea reaffirmed its “partnership with the sector, supporting those who produce, transform, and promote the wine.”
