EU Changes Rules for Wines

Well, well. The EU has finally relented and is allowing the introduction of resistant grapevine varieties in designated appellation regions. They realised that climate change and the use of pesticides and other toxins are colliding to cause devastation to the environment. To hell with the appellation. They are finally going to save the earth. But they don't seem to have left many native vines behind. At least I keep searching for them in ancient monastic sites and haven't found any. 

A number of hybrid varieties benefit from a higher resistance to common diseases such as downy and powdery mildew, meaning that the vineyards require little to no treatments such as chemical pesticides or organic-approved copper. That will enable the industry to become sustainable. It will also stop tractors from compacting the soil as they apply chemicals that poison the land and pollinators. 

Meanwhile, at the International Wineries Climate Action conference,  Miguel Torres of Familia Torres warned that ‘Climate change for viticulture is worse than phylloxera’. IWCA warns of a 'climate emergency' as it continues working towards its members being carbon neutral by 2050.

I haven't been able to find the EU announcement about the changes yet. Here is a scholarly article analysing the considerations: EU wine policy in the framework of the CAP: post-2020 challenges

Here is an article about hybrids.

And now, a challenge to the classification systems. 

UK to adjust taxation of alcoholic beverages

BBC reports that GB will institute higher taxes on drinks with higher alcohol content. They expect this to bring attention to English wines. White wine taxes are to decrease. Red wine taxes are to increase. What am I not getting? And why doesn't vodka change?

But the UK government's plans to reform alcohol taxation might not apply in Northern Ireland due to the protocol. The protocol keeps Northern Ireland in the EU single market for goods. As a result, EU excise duty rules continue to apply. The EU sets a minimum tax rate for alcoholic drinks but member states can apply tax at a rate higher than the minimum. But they may make a deal with the EU on this issue. So, northerners will shop for higher alcohol content drinks in the south and Irish Republicans will cross the border to get cheap British wines in the north. 

How is this an important post-Brexit issue to address? 

Anyway, this weekend the EU and US have agreed to eliminate the whiskey tariffs in response to Trumps's steel retaliation trade war. But the Brits will keep theirs in force it appears. 

How tariffs have affected wine sales

An analysis in Barron's and carried in Penta described how US tariffs on EU goods have affected wine sales in the US. Last October, the U.S. government began imposing 25% tariffs on still wine from several European countries in retaliation for European subsidy of Airbus. Those tariffs were supposed to expire now, but the US government has decided to let them continue. 

Tariffs on alcoholic beverages are causing harm to U.S. small businesses and the hospitality industry. The 25% tariffs mean that for every US$1 in harm dealt to EU businesses an estimated US$4.52 is dealt in damage to U.S. businesses. This is hard to absorb on top of the Covid-19 pandemic fallout. 

The US has a prohibition-era law that requires only US-owned businesses to deliver wine to consumers in a three-tier system. The U.S. distribution system requires wine producers (which can include importers) to sell to wholesalers, which then sell to retailers, which sell to consumers, meaning margins for most of these businesses are relatively modest. 

Allowing the tariffs to continue has sent a message to all these small businesses. I hope they take that message to the polls in November. 

Impact of Climate Change on Viticulture Globally

Numerous articles have been published about the effects of climate change on the wine industry and mitigation strategies are already being implemented. It is always interesting to me that man feels compelled to control his environment. That usually lasts long into the period after realization has set in that controlling it is in fact impossible and moving on is a more sensible solution. But of course, moving on from an estate that's been in the family for centuries is not a really feasible proposition.

The higher likelihood is that someone recognizes the potential and establishes competition elsewhere which eventually becomes more successful. At that point, the original estate begins to need more income and finds new crops to plant that are more suitable to the new environment. At least, that's how I imagine things to work and have read similar stories.

Michelle Renee Mozell and Liz Thach write in their recent review article, "Though wine is not essential to human survival, wine is an important product of human ingenuity." They tackle the global literature  about the impact of climate change on the global wine industry. It's that human fascination with wine that makes wine production a sacrosanct activity and may even be the impetus that gets governments on board the climate change mitigation train.

The entire range of grape growing climate zones is about 10°C globally; for some grapes, such as Pinot noir, the range is an even narrower 2C°. Many progressive wine growers have already taken steps to mitigate the effects of climate change, including cooling the grapes by misting and changes irrigation practices. But in the long run, those types of practices will be affected by availability of fresh water as we are seeing in California. Some are changing the manner in which they process the grapes into wine and others are planting new more tolerant varieties or buying up land in more favourable climates. It is surprising how aware these growers are of the changing climate compared with the naysayers in the public domain. But of course, farmers and fishermen are always among the first to notice the changes, it's just that they are infrequently asked by the scientists to share their observations. Perhaps now they will be, especially as funding for science drops out.

But there are three areas that still need research to determine optimal strategies:

• studies to identify how plants, microrganisms and pathogens will respond to simultaneous rise in temperature and CO2 while rainfall decreases in traditional wine growing regions
• means by which to reduce emission of the greenhouse gasses, nitrous oxide and methane, by vineyards during the production of wines
• resource management throughout the production chain

The authors conclude, "wine's future is tied inextricably to a vital Earth and a vital population. Grape growers and winemakers must understand both the dire condition of the planet and the small, but significant, role their industry holds in the human matrix. They must seek, therefore, in a responsible manner, their proper and effective role in the adaptation to and the mitigation of global climate change. The future of the wine industry is dependent upon an effective course of action. The Romans declared, 'Vino veritas,' or 'in wine there is truth'. The simple, yet tragic, truth is the Earth's climate is changing. How the wine industry responds will determine if the industry is to survive."



www.sciencedirect.com
Wine Economics and Policy 3 (2014) 81–89
The impact of climate change on the global wine industry:
Challenges & solutions
Michelle Renée Mozell, Liz Thach
Sonoma State University Wine Business Institute, 1801 E. Cotati Blvd, Rohnert Park, CA 94928, USA
 http://ac.els-cdn.com/S2212977414000222/1-s2.0-S2212977414000222-main.pdf?_tid=6c72a3ec-57d4-11e5-9028-00000aacb361&acdnat=1441900736_d33fc9b7e34238d304eb94e45364105f