These are the measures to stop negative trends in winemaking

The trends are not good; we ended 2015 with a negative balance of 16.6 million euros, with wine imports amounting to 29 million euros and exports totaling 12.4 million euros.

This was emphasized by Žaklina Jurišić, assistant director of the Agriculture, Food Industry, and Forestry Sector of the Croatian Chamber of Economy (HGK), at a gathering organized by the Agrobiz.hr portal, the Association of Agricultural Journalists of Croatia, and the Association of Agricultural Journalists of HND.

The association of wine producers, modernization of production, increased control of imported wine, branding, and promotion of domestic wines are some of the measures that need to be implemented to stop the negative trends in winemaking, as highlighted on Friday at the round table “Winemaking in Croatia in 2016: Pressure on Prices and Better Quality Control of Wine on the Market.”

Jurišić pointed out that we have fragmented holdings and small quantities, with more than 90 percent of grape producers in the category of up to one hectare. It is necessary, she stated, to work on wine promotion, modernization of production, producers must unite, and there should be increased controls on labeling and quality of wine.

– Our strategic framework regarding wine is not being realized due to a lack of political will, and among producers, there is no connection that would ensure long-term competitiveness, said wine market consultant Đuro Horvat.

Most wine is imported from Macedonia, which accounts for 40.5 percent of the value of imports and 60 percent of the quantity. This is followed by France, from which 10.4 percent is imported in value and 3.5 percent in quantity, then Germany, Italy, Bosnia and Herzegovina, etc.

Reflecting on wine control, Horvat asked how it is possible that out of nearly 30 million liters of imported wine last year, only 21 samples were tested. He also considers consumer education necessary, as, he said, consumption stabilization cannot be achieved without educating consumers. Strong connections within the wine sector are also essential. This is agreed upon by Vlado Krauthaker from the Graševina Croatia Association, who stated that “association is the only way for winemakers to succeed, especially in exports.”

The director of the development of viticulture and winemaking at Badela 1862, Dubravko Ćuk, also believes that the association of winemakers is necessary and notes that this company has been talking for years about the need for association and promoting export brands.

– Everyone is declaratively in favor, but when it comes time to implement, everything falls apart, he said.

On the other hand, we import wine at an average price of 1.19 euros per liter, it was emphasized at the gathering. At the same time, Croatia exports most wine to Bosnia and Herzegovina, which accounts for 34.4 percent of the value of exports, followed by Germany (13.5 percent), the Czech Republic, Montenegro, Serbia, etc. Wines are exported at an average price of 2.51 euros per liter. Regarding wine consumption, Croatia is on average in the EU, with consumption around 25 liters per capita annually.

Consultant Zvjezdana Blažić emphasized that competitiveness in the wine sector is severely compromised, that wine promotion and consumer education are necessary, and that there are funds available in EU funds for this purpose.

– We need to work primarily on connecting producers who would then apply together for EU fund tenders, said Blažić, adding that for funds from the Wine Envelope, it is necessary to simplify tenders to increase their utilization.

It must not happen that if funds need to be utilized by October, the tender is announced in May, said Blažić.

She warns that funds from the Wine Envelope allocated for a specific year cannot be carried over. If those funds are not utilized in a given year, they are lost funds, she emphasized. Participants at the gathering also stated that the existing Wine Law is outdated and that a new law needs to be enacted that should be simple and understandable.