In recent years, much less has been sold than produced. The Basque government wants to dispose of the 9 million liters that are still stored with new subsidies.
The producers of Rioja Alavesa wines they will be able to allocate for industry and energy the liters that could not be sold, thanks to the aid approved by the Basque government at the request of DOCa Rioja. The Deputy Minister of Agriculture, Fisheries and Food Policy, Bittor Oroz, explained that up to 8 million euros will be allocated to distill about 9 million liters with the aim of discharging the surplus from the wineries.
Wine producers are having serious problems selling everything they produce due to the war in Ukraine and the exclusion of the UK market from the European Union. They want to take those millions of liters off the market to balance supply and demand and avoid lower prices.
Some wineries collect three years of harvest. “We have a problem with wine sales. We are having a very bad year,” the deputy minister told EITB.
Wineries may only use this distilled wine for industry or energy (biofuels). That is, the distillate cannot be used for alcoholic beverages.
They will subsidize the distillation of the 2022 vintage, with red wine paying better than rosé. Wineries that produced more than 500,000 liters will be able to subsidize 10%, while smaller producers will receive 15% (250,000-500,000 litres) and 10% (250,000 litres).
According to Oroz, the measure is radical, but it is the last option to bring dynamism to the market. In the medium and long term, the designation of origin should study other measures. The possibility to shrink the vineyards is on the table, as the goal is to rebalance supply and demand.
Source: EITB
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
