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1 EUROPEAN COMMISSION EUROSTAT Directorate E: Sectoral and regional statistics Unit E-2: Agriculture and fisheries Luxembourg, 8 September 2010 ESTAT/E.2/ FC/er ASA/PE/771 (Only available in EN) CROP STATISTICS WORKING GROUP OCTOBER 2010 MEETING ROOM QUETELET, BECH BUILDING KIRCHBERG, LUXEMBOURG CHAIRED BY: GITA VERGINA Item 3.4: Handbook for compiling wine supply balance sheet (for information and discussion) Document uploaded on CIRCA on 6/10/10
2 EXECUTIVE SUMMARY In 2008 and 2009 the Common Wine Market Organisation was deeply reformed. The new market organisation introduced new categories of wines, replacing the V.P.Q.R.D. and Table wines notions by: Wines with Protected Designation of Origin (PDO); Wines with Protected Geographical Indication (PGI); Varietal wines without PDO/PGI Other wines This version of the handbook applies to the compilation of the wine supply balance sheets (SBS) from the 2009/2010 marketing year onwards. The provisional report for this marketing year is to be sent to Eurostat not later than 15 December 2010 and the final report not later than 15 March For previous marketing years the former handbook still remains. The Members of the Working Group are asked: To provide comments on the methodology proposed. To inform the WG if they foresee any difficulty in implementing its use. 1
3 WINE BALANCE SHEETS LIST OF CONTENT A. - INTRODUCTION AND GENERAL INFORMATION B. DEFINITIONS OF THE COLUMNS IN THE BALANCE SHEET C. DEFINITIONS OF THE ROWS IN THE BALANCE SHEET D. TRANSMISSION TO EUROSTAT E. CONSULTATION OF BALANCE SHEETS ANNEX I: Wine Supply Balance Sheet form ANNEX II: Combined Nomenclature Codes 2
4 WINE BALANCE SHEETS A. - INTRODUCTION AND GENERAL INFORMATION A.1. - Regulatory framework Council Regulation (EC) No 479/ of 29 April 2008 laid down the new common organisation of the market in wine. This regulation was incorporated in 2009 by Regulation 491/ into the Single CMO, better known under Council Regulation (EU) 1234/2007. The new Wine Market Organisation introduced new categories of wines, replacing the V.P.Q.R.D. and Table wines notions by: Wines with Protected Designation of Origin (PDO); Wines with Protected Geographical Indication (PGI); Varietal wines without PDO/PGI Other wines Further to that regulation, Commission Regulation (EC) No 436/ of 26 May 2009 lays down detailed rules as regards the gathering of information to identify wine products and to monitor the wine market. It lays down the procedures concerning harvest, production- and stock declarations. Articles 19.1b and 19.2 require that supply balance sheets (SBS) must be sent to Eurostat. The marketing year covered by the balance is from 1 August to 31 July. This version of the handbook applies to the compilation of the wine supply balance sheets from the 2009/2010 marketing year onwards. The provisional report for this marketing year is to be sent to Eurostat not later than 15 December 2010 and the final report not later than 15 March For previous marketing years the former handbook still remains OJ L 148 of , p. 1 OJ L 154 of , p.1 OJ L 128 of , p.15 3
5 A.2. - Document to be provided Data are needed to implement these Regulations and in particular for the management of the wine market in a context of freedom of movement and of open markets. The table of grape production (ex-table II) and the table of stocks (ex-table III) have not to be supplied any longer to Eurostat. They will be gathered by DG AGRI. The products of the wines balance sheet divide into 4 main columns each representing one subbalance. They themselves are broken down according to the colour. The items of the wines balance are set out in lines according to the usual distinctions. Simplified representation: All Wines PDO PGI VAR Others Of Of Of Of Of Opening Stocks Production Imports Exports Uses Ending Stocks Parameters Volumes are expressed in 1,000 hectolitres (1000 hl). A.3. - Marketing year and calendar year The wine marketing year continues to run from 1 August to 31 July. The harvest taken into account is that of the first year; i.e. for a balance covering the marketing year from 1 August of year n-1 to 31 July of year n, the harvest taken into account will be that of year n-1. For the marketing year , where n=2010, the harvest to be taken in account will be the harvest of 2009 as grapes have grown during spring 2009 and have been vinified during autumn
6 A.4 - Reference territory The supply balances are drawn up for the customs territory of the Member States, defined in accordance with the Council Regulation (EC) No 1172/95 4 of 22 Mai A.5. - Units The usual unit of measure is 1,000 hl of wine. Grape must is always expressed in wine-equivalent. Member States should provide the conversion coefficients used (Article 15.1 of Regulation (EU) 436/2009). B. DEFINITIONS OF THE COLUMNS IN THE BALANCE SHEET These definitions refer to Table in Annex I B.1. - PRODUCTS The breakdown by columns of this balance concerns products as defined in Annex IV of Regulation No. 479/2008, integrated in the single CMO Regulation (EC)1234//2007 as Annex XIb.. The following products are included: Wine: alcoholic beverage obtained exclusively by total or partial alcoholic fermentation of pressed grapes whether fresh or not, or of grape must. New wines still in fermentation are included. The following products are not included, please note however that the grape must or the wine used for production of these products have to be included: - grape juice, - vinegar, - grape marc, - piquette, - wine-based alcohols and - flavoured vermouths and wines. The definition of wine also excludes beverages produced from fruit other than the grape and known as "fruit wines". B.2. - BREAKDOWN BY CATEGORY Returns of harvest, production and stock defined by Regulation No 436/2009 are broken down according to the category. Among wines, the following distinctions exist: o Wines with Protected Designation of Origin (PDO); o Wines with Protected Geographical Indication (PGI); o Varietal wines without PDO/PGI 4 OJ L 118 of , p10 5
7 o Other wines PDO and PGI wines are wines benefit from a European Protection. Wines produced in third countries can also benefit from PDO/PGI if they are recognised. As a result of this protection they are all included in the e-bacchus wine database 5. Varietal wines are wines are primarily made from grape wine varieties are indicated clearly on the label like Chardonnay, Shiras, Merlot, Zinfandel, etc. However if these wines benefit from a PDO or PGI the will be classified under PDO/PGI. Wines from third countries have to be booked in the same way and under the same category as wines from the European Union. B.3. - BREAKDOWN BY COLOUR The statements of harvest, of production and of stock defined by Annex IV and V of Regulation No 436/2009 are broken down according to colour into and red wines. Pale and rosé wines are included with red wines. Annex IV and V consist out of 5 wine categories instead of the 4 mention in this document. For simplification reasons, Wines without PDO/PGI other than varietal wines can be grouped with "Other wines". C. DEFINITIONS OF THE ROWS IN THE BALANCE SHEET Note: the figures between brackets refer to the item code for each line of Annex I. C.1 -STOCKS (1) and (7) The end stock of the marketing year n-1/n is established at 31 July n on the basis of the stock statements made under Regulation (EU) No. 436/2009. The opening stock (1) of a marketing year is by definition the closing stock (7) of the previous year. If data differ following a methodological correction, the difference should be explained. It includes stocks of wine and must intended for wine making, held at production level or by the wholesale trade. It includes the products included in the balance sheet, broken down by quality and colour, but does not include vinegar, vermouths and flavoured wines. By convention, the stock of farmers who are themselves marketing their own production is counted with stock held by producers (1.1 and 7.1). The stock of traders who own vineyards is counted with stock held by the trade (1.2 and 7.2). The stock of imported wines held by producers is counted with stock held by the trade (1.2 and 7.2). The stock held by the retail trade and households is included within the human consumption (6.1). 5 "E-Bacchus" is a database lists EU and non-eu countries' geographical indications and names of origin protected in accordance with bilateral agreements on trade in wine concluded between the EU and the non-eu countries concerned. It includes a Register of designations of origin and geographical indications protected in accordance with Council Regulation (EU) 1234/
8 The total stock (1 and 7), is shown in the provisional and final balance, is the sum of the stock held by producers or producers groups, and the stock held by the trade. C.2-PRODUCTION (2) production (2) includes all wine and must production, therefore: - production intended to a use other than wine (2.1.): it is subdivided into must intended solely for grape juice (2.1.1.) and losses due to evaporation during the musts concentration (2.1.2.), and - production intended for wine process ( usable production ) (2.2.). This includes all wines but also all must, concentrated or not. Concentrated must is accounted in volume. The latter represents production of wine and of must intended for wine production (2.2) and this alone is used for further calculation of the balance sheet. Wines made with the musts of previous years are not included because they are already included in the opening stocks. Identically concentrated musts made with the musts of previous years are not included because they are already included in the opening stocks. The concentrated must should be quantified in equivalent of original must (before concentration, i.e. including the water losses due to evaporation during the musts concentration process). C.3. - EXTERNAL TRADE External trade is divided into import of products (3) and export (5). Imports means imports strictu senso from third countries of wines produced in third countries (3.1) Community wines re-introduced from third countries are considered as a new introduction. If possible introductions from other Member States (of wines not from non EU wines) should be estimated from accounting sources for trade with other Member States. Exports means exports strictu senso to third countries (5.1) and consignment to other Member States. As far as possible, Member States use customs statistics (COMEXT regime 1) to establish trade with third countries and accounting sources for trade with other Member States. The combined nomenclature (CN) codes used in these flows are listed in the annex II. These codes are updated annually. Note: In the case of introduction by a Member State of must originating in another Member State and intended for wine production in the introducing Member State, the must may be included as introduction of wine. It will also appear in the relevant column of the consignments by the country of origin. External trade with third countries as bottled wine is taken into account: imports (3.1.1.) and exports (5.1.1.). This distinction is done by the CN for bottled still wines and for bulk still wines. All packages above 2litres are considered as bulk under World Customs Organization (WCO) rules. 7
9 C.4. - INTERNAL USE (6) C HUMAN CONSUMPTION (6.1.) This is the quantity of unprocessed or (sometimes) processed wines and musts entering human consumption. The quantity already entered under processing is excluded from this item. Producers' own consumption is included, as well as wine consumed in or away from the home. Losses and variations in stocks at institutional and consumer level are included in this item. As Human Consumption is not being counted in all Member States, this item is the resulting factor of all other items in the balance sheet, using the following formula: 6.1 = C.4.2.-INDUSTRIAL USES (6.2.) C Distillation (6.2.1.) The quantity of wine and of wine lees distilled for the manufacture of ethyl alcohol are shown under this heading, whether they are intended for: - the production of named brandies ( ). Only Cognac and Armagnac from France are included. - the distillation following the Regulation 1234/2007 ( ). It is broken down into: -- distillation of the by-products of vinification ( ), -- distillation as a market regulation and support measure, for food alcohol ( ), -- distillation as an emergency market regulation measure ( ). - the production of alcohol following national PDO/PGI regulation ( ). C Vinegar manufacture (6.2.2.) This covers the quantity of wine used for the manufacture of vinegar. C PROCESSING (6.3.) This covers the quantity of wine used for the manufacture of vermouth and flavoured wines. C LOSSES (6.4.) This item concerns the losses during production phase and the losses in the marketing sector (during storage, transport, conversion and packaging of the wine). It does not include the lees used as by-products ( ) must be assigned to the corresponding item. C.5. - AGGREGATE LINES The total resources (4) are calculated as the sum of: - usable production (2.2.), 8
10 - opening stock (1) and - imports (3). The total resources must balance the total disposals, i.e. the sum of: - exports (5), - internal use (6) and - closing stock (7). internal use (6) is calculated as the sum of: - human consumption (6.1.), - industrial uses (6.2.), - processing (6.3.) and - losses (6.4.). Industrial uses themselves are subdivided in distillation (6.2.1) and vinegar manufacture (6.2.2). D. TRANSMISSION TO EUROSTAT Commission Regulation (EC) No 436/2009 of 26 May 2009 lays down detailed rules as regards the gathering of information to identify wine products and to monitor the wine market. Articles 19.1b and 19.2 do specify that following balance sheets must be sent to Eurostat: Each year, not later than 15 December, the provisional report on the previous wine year; Each year, not later than 15 March, the final report on the wine year before the previous wine year. Member States notify data to Eurostat no later than the dates in the following table: The example given is for marketing year 2009/2010 (1 August July 2010). Year n=2010 Date for notification Tables 15 December n (2010) 1. the provisional balance of the previous marketing year n-1/n (2009/2010) 15 March n+2 (2012) 2. the final balance of the last-but-one marketing year n-2/n-1 (2009/2010) For the marketing year 2009/2010, the provisional report has to be sent not later than 15 December 2010 and the final report not later than 15 March Of course corrections or updates of these data can be sent at any time. 9
11 Wine balance sheets have to be supplied electronically through the existing Eurostat e-damis application. Specific information on the use of this application and for requesting access rights can be found at the edamis Web Portal using the following link: F. CONSULTATION OF BALANCE SHEETS The information on the Wine balance sheets is published by Eurostat together with balance sheets of other products on the public Europa Web Server at the following address:. Balance sheets can be found under the heading "APRO" and subheading apro_cpb_wine. The application allows the user to compose his own balance sheet by determining: - Period where year N refers to campaign N-1 / N, ( year 2011 refers to campaign ) - Product category - Balance items - Geographical units ( EU or by Member State) Example, can be printed or downloaded into Excel, Html, PC-Axis or S.P.S.S. 10
12 ANNEX I: WINE SUPPLY BALANCE SHEET PROVISIONAL/ FINAL WINE BALANCE SHEET (1000hl) Country : Wine year [01-08-(n-1)/31-07-n]: TOTAL WINE P.D.O. wines P.G.I. wines Varietal wines OTHER WINES of wines of wines of wines of wines Codes Structure Codes INITIAL STOCK of market 10 2 TOTAL PRODUCTION Other than for vinification Must for grape juice Losses from evaporation USABLE PRODUCTION 20 3 IMPORTS of from third countries of bottled 99 4 TOTAL RESOURCES ( )= =TOTAL USES (5+6+7) 30 5 EXPORTS of to third countries of bottled 50 6 TOTAL INTERNAL USE HUMAN CONSUMPTION INDUSTRIAL USES Distillation name brandies by products food alcohol crisis under national regulation Vinegar manufacture PROCESSING LOSSES 40 7 FINAL STOCK of market of wines 11
13 ANNEX II: Combined Nomenclature Codes CN Code Definition 2204 Wine of fresh grapes, including fortified wines; grape must other than that of heading No 2009 : ALL, of : other musts ( , , , ) According to Commission Regulation (EC) No 948/2009 of 30 September 2009 P.D.O. wines P.G.I. wines Varietal wines OTHER WINES of wines of wines of wines of wines 6-digit N.C. Category SPARKLING wines BOTTLED wines
14 P.D.O. wines P.G.I. wines Varietal wines OTHER WINES of wines of wines of wines of wines 6-digit N.C. Category BULK wines
15 P.D.O. wines P.G.I. wines Varietal wines OTHER WINES of wines of wines of wines of wines 6-digit N.C. Category GRAPE MUST Notes: 1. Sparkling wines and wines with 1-3bar, other than are booked as sparkling wines 2. Wines exceeding 15 Vol may be booked under PDO, unless more specific information available at national level. 3. PGI wines from third countries may be booked under PDO wines, unless more specific information available at national level 5. Grape musts may be booked under Other wines, unless more specific information available at national level 4. Bulk sparkling wines may be booked under PDO wines, unless more specific information available at national level 5. For 2009, V.Q.P.R.D wines have to be considered as P.D.O. wines. 14
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