The wine business is going through one of the most difficult phases in recent decades, with world consumption falling to its lowest level in the past 60 years, according to the International Organisation of Vine and Wine. The excess supply, changing consumption habits and economic and geopolitical instability are pressing prices and margins, leading several countries to pull out vineyards to reduce production. France, Germany, Austria, Australia and the United States are among the countries taking adjustment measures.
Portugal shows greater resilience than other European producers, with national production recovering this year and grape quality being good. However, about half of Portuguese wine goes to external markets, exposing the country to changes in international demand. The Government announced a 110 million euro credit line to support grape buyers, 12 million euros for Douro producers without a destination for their grapes, and five million euros for vineyards affected by storms.
The Confederation of Portuguese Farmers argues that support should be extended to all wine-producing regions, not just the Douro. The organisation also demands inspection, control and full traceability of bulk Spanish wine entering Portugal, considering that imports at prices below national production costs increase pressure on producers and may generate unfair competition. According to CAP, Spanish farmers benefit from subsidies more than 30 times higher than those granted in Portugal for energy, fuels and fertilisers.
The Institute of Vine and Wine is developing a digital traceability system for all wines sold in Portugal, using artificial intelligence and data interoperability with the Tax Authority. The Vineyard and Wine Observatory was also created to gather detailed information on production and market. The support scheme for promoting Portuguese wines was reformulated, with the public funding rate rising from 50% to 60%. The 2024 labelling rules now require greater prominence for origin in blended wines, with sales of these falling by about 20% a year after the rules came into effect.
