The State Supports Winemakers: The Ministry of Agriculture Introduced ‘Wine Packages’

The Ministry of Agriculture announced on Monday that new calls for applications from the National Program for Supporting the Wine Sector 2014-2018, known as Wine Packages, will soon commence. The program amendments introduced a new measure ‘Information in Member States’ and increased the amount of support for the vineyard conversion measure.

This support can be utilized by wine producer organizations and associations, sector organizations, and public bodies representing wine producers. The funds can be used for informational campaigns, participation in fairs and exhibitions, media advertising, the creation and distribution of informational materials, the production of spots, websites, photographs, as well as personnel costs, transportation, hotel accommodation, catering services, etc.

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The minimum amount of support per project is 3,000 euros, and the maximum is 50,000 euros. The level of support amounts to up to 50 percent of the total eligible costs and relates to EU funds, the Ministry explains.

Among other significant changes in the National Program, they highlight amendments to the ‘Restructuring and Conversion of Vineyards’ measure, which they estimate will contribute to better fund absorption.

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The Ministry emphasizes three changes related to this measure – increased support intensity from 50 to 75 percent (except for in-kind contributions); the removal of the limit on total eligible costs per project and the minimum amount of support per project; the possibility of disbursing support for work for which payment has not been made supported by invoices (in-kind contributions), with a support intensity of 50 percent of eligible costs.

The goal of this measure is to increase the competitiveness of producers through the adaptation of existing vineyards to new vineyard management techniques and the replacement of varieties with high-quality varieties, emphasizing indigenous varieties, and relocating vineyards to areas that yield better quality grapes (on slopes), as stated in the announcement.

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Vinegrowers registered in the Vineyard Register can use this measure for the replacement of grape varieties, relocation of vineyards, changing vineyard density, changing slopes, building terraces, irrigation, etc.

The maximum amount of support per project is 750,000 euros, and for an approved project, it is possible to receive an advance of 80 percent of the approved support. Installment payments are also allowed for each completed activity within the project, the Ministry notes.

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According to the data presented, so far, the Agency for Payments in Agriculture, Fisheries, and Rural Development has contracted 43 projects worth 46 million kuna in support for the ‘Restructuring and Conversion of Vineyards’ measure.

The Ministry of Agriculture announces that new calls for applications for all measures from the Wine Packages will soon commence. The announcement of calls for the measures ‘Promotion in Third Country Markets’ and ‘Investments (equipment)’ is expected on May 11, for ‘Restructuring and Conversion of Vineyards’ the call starts on May 18, while the announcement of calls for the measures ‘Information in Member States’ and ‘Investments (construction and/or equipment)’ is expected in June.

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The established amount of funds allocated for the wine sector is 10.8 million euros annually.

So far, within the National Program for Supporting the Wine Sector 2014-2018, 274 projects have been contracted for all three measures for 202 million kuna in support. The total value of all contracted projects amounts to 560 million kuna, the Ministry of Agriculture states.