Wine
producers in Portugal’s Douro region now have the backing of the country’s
President, Marcelo Rebelo de Sousa, in demanding urgent reform to the long outdated
regulatory system that is threatening the economic viability of their renowned
vineyards.
The
president has followed up on an open letter signed by the leaders of all the
top wine companies, such as Symington Sogrape, Sogevinus and Cran Cruz, as well
as a number of medium and small-sized premium producers. The letter has also
been endorsed by about 1,000 protesters insisting on rapid change.
The Douro’s
regulations were put in place about 100 years ago. Some minor adjustments have
been made since then, but a full review and more essential adjustments are now
desperately needed “so that the region adapts to today and tomorrow’s reality,”
the president has said. He noted that changes were in the interests not only of
the Douro in the north of Portugal, but the whole country.
Paul
Symingtom, of Symington Wine Estates, has pointed out that Douro wine
regulations were designed last century almost exclusively for Port, but other
wines now account for almost half of total grape production. “We need more
intelligent use of the rules on maximum yields per hectare,” he said.
For those
unfamiliar with Douro vineyards, they are planted on remarkably stony soil on
terraces on the sides of 30 degree hills. The grapes have to push their roots
deep into the ground because the soil does not retain much water.
Vines have
been grown here at least since the Romans made wine during their long
occupation of the Iberian Peninsula. Portugal has been exporting wine from the
spectacular Douro Valley since the nation’s founding in the 12th
century. Exports were hugely enhanced after Portugal and England signed the
Treaty of Windsor in 1386. Port has been
the best known type of Douro wine since the mid-17th century.
Portugal is
now the fourth largest grape-growing country in the world and the ninth largest
wine producer. But in recent times the Douro has been especially vulnerable to
global warming causing a mixture of floods, droughts, and scorching heat waves
with temperatures reaching more than 104 degrees F. Diminishing yields, rising costs, low sales
prices, a decreasing number of farmers and other factors have impacted the
industry.
The Drinks Business, a European trade journal, has
issued a translation of the Portuguese open letter headlined “The Douro
Deserves Better”: Some of the highlights:
+ The Douro demarcated region is known for
being one of the marvels of the wine world. It contains more than half of the
world’ steep mountain vineyards and is classified as a UNESCO World Heritage
site. There is no comparable wine region.
+ More than
19,000 grape farmers and 1,000 companies are committed to working in these
challenging vineyards, producing two renowned wines: Port and DOC Douro wines.
+ Over the
past 20 years there has been a 25% reduction in total Port volumes to 7.8
million cases in 2022, while DOC wines have grown to 5.2 million cases.
+ Despite
these profound changes, the regulatory structure has remained unchanged and is
now creating serious distortions that have impacted not only the price of
grapes, but also the socio-economic sustainability of the farmers, the
companies and the future of the region’s wines in international markets.
+ Many
grapes are sold below cost. The loss to farmers is obvious, resulting in the
abandonment of vineyards and depopulation of the region.
+ Equally
serious is that too many wines are being sold internationally at prices
comparable with the cheapest wines in the world – something that would be
impossible if farmers were paid a fair price.
+ Over the
past 15 years various studies have been produced by highly reputable
organisations. All concluded that the Douro is not sustainable under these
circumstances and that regulatory reform is necessary. But nothing has been
done despite repeated promises by the State.