Wine producers urge controlled vineyard yield decrease for environmental reasons
In a pressing declaration, the Port Wine Producers Association appeals for urgent action on two crucial fronts: the green harvest measure and crisis distillation. The former would provide remuneration to viticulturists with no commercial prospects, as stated in their official announcement. Meanwhile, the latter involves the obligation to purchase wine for restocking purposes.
As per AEVP's stance, the crisis distillation will aid in freeing up stored wine to accommodate the 2025 harvest and contribute to wine restocking. This appeal comes in light of theiw observation that Port wine sales have experienced a steep decline since the year 2000, a trend which worsened in 2024.
Furthermore, the association cites the current 'stock' level, which they claim has never been higher, the average production of the last five harvests (approximately 135.3 million liters), and the lack of agreement on structural measures as additional concerns.
Without these measures, AEVP warns of an imminent crisis that could significantly undermine the profitability of the entire Demarcated Douro Region. This non-profit organization, comprising 33 companies that represent 63% of the total wine commercialization in the Demarcated Douro Region and 80% of Port wine, is under pressing urgency to address these mounting issues.
Context Clarification: The Port wine industry faces numerous challenges such as market competition, geopolitical trade risks, and branding challenges. One major issue is the recent U.S. proposal for 200% tariffs on European wines (including Portuguese wines), which may impact revenue significantly due to the U.S. being the second-largest importer of Portuguese wines. Therefore, the Association of Port Wine Companies is likely prioritizing lobbying for trade stability and expanding promotion of still wines to gain global recognition and diversify its market base.
- The Port Wine Producers Association is seeking urgent action on two critical fronts - green harvest measure and crisis distillation - to address the imminent crisis looming in the Demarcated Douro Region's profitability.
- The green harvest measure is proposed to remunerate viticulturists with no commercial prospects, while crisis distillation involves the obligation to purchase wine for restocking purposes.
- AEVP believes that the crisis distillation will help free up stored wine for the 2025 harvest and contribute to wine restocking, as the stock level is currently at an all-time high.
- The lack of agreement on structural measures, the continually declining sales since 2000, and the worsening situation in 2024 are additional concerns for the Association of Port Wine Companies, an organization that represents a significant portion of the Port wine business and finance.
