How Much Government Assistance Do European Wine Producers Receive?

Kym Anderson and Hans G. Jensen

Chapter 21 in The International Economics of Wine, 2019, pp 505-525 from World Scientific Publishing Co. Pte. Ltd.

Abstract: The European Union’s (EU) long-standing financial support for its wine industry has been nontrivial but very difficult to estimate. The Organization for Economic Cooperation and Development’s (OECD) generic producer support estimate methodology has been able to capture some of the supports, but it excludes such measures as subsidized distillation of lowquality wine, grants to promote wine generically, protection via import tariffs, and grubbing-up premiums. Nor does the OECD disaggregate EU supports to individual member countries. This article provides a new set of more complete estimates of support to EU wine producers. It also reveals how unevenly those supports are spread across EU member countries. The new estimates suggest that during 2007–2012, annual assistance amounted to approximately 700 euros per hectare of vines or 0.15 euros per liter of wine produced in the EU as measured at the winery gate. That is equivalent to a nominal rate of direct plus indirect producer assistance of approximately 20%.

Keywords: Wine Globalization; Australia's Wine Internationalization; Wine Markets in Asia; Wine Price Distortions; Modelling Global Wine Markets (search for similar items in EconPapers)
JEL-codes: L66 O13 (search for similar items in EconPapers)
Date: 2019
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Related works:
Journal Article: How Much Government Assistance Do European Wine Producers Receive?* (2016)
Working Paper: How much government assistance do European wine producers receive? (2016)
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