The Portuguese Government is preparing a new direct support measure for wine growers in the Demarcated Region of Douro who were unable to sell all their grape production. The announcement was planned for September 4th, the date when the Council of Ministers would meet, with the presentation to be made by the Prime Minister, Luís Montenegro. The Minister of Agriculture and Sea, José Manuel Fernandes, stated that the measure aims to "reduce what is already a loss for the producer," although the amounts and access conditions have not been revealed.
The intervention comes in a context of difficulties for the approximately 18,000 Douro wine growers, who face problems in selling their grapes and prices that, in many cases, do not cover production costs. Many producers have difficulties selling grapes that go beyond the so-called "benefício," that is, the authorized quantity for Port Wine production. The destination of this surplus production has become one of the main problems of the current harvest.
Several crucial aspects of the support have not yet been defined, including whether it will be granted to all wine growers with unsold production, whether there will be limits per holding, or whether priority will be given to small producers. It has also not been revealed whether it will be necessary to prove the lack of a buyer or the quantity of grapes that remained unsold.
In parallel, a 100 million euro credit line for companies and cooperatives in the sector is being negotiated with the Ministry of Finance, aimed at providing liquidity for payment to producers for the grapes purchased. This measure, as it is still under negotiation, is not expected to be approved at the same Council of Ministers. The Minister stated that access will be limited to cooperatives that have not imported wine in the last three years, but the interest rates, repayment terms or limits per beneficiary are not yet known.
