Swiss wine industry divided over state support as consumption falls

Switzerland’s wine industry is divided over how the state should respond to falling consumption, climate-related risks and cheap foreign surplus, SRF reported.

“Falling consumption is not only a problem in Switzerland, but worldwide,” said Beat Kamm, president of the Zürcher Wein industry association. He said attempts by foreign producers to sell surplus wine cheaply in Switzerland were worsening the situation.

Changes to vineyards and harvesting cannot be made quickly, Kamm said. “Vines are a product with a cycle of 25 to 40 years. We cannot simply turn off the tap.”

Climate reserve divides the industry

The industry is particularly divided over proposed measures between German-speaking Switzerland and the French- and Italian-speaking parts of the country. One proposal is a climate reserve designed to help Swiss wine producers offset fluctuations in harvests.

On Wednesday, the National Council approved the proposal by 128 votes to 43, with 16 abstentions. The Council of States will decide next.

Under the plan, wineries could store grapes harvested above cantonal maximum yields but below limits set by the Federal Council as wine reserves. The wine could be released only when market conditions required it. The cantons would set the rules for creating and releasing reserves of AOC wine.

The reserve is intended to bridge years with small harvests and prevent prices from falling when large quantities of wine reach the market. Participation would be voluntary for both cantons and producers, and the federal government would incur no additional costs, Federal President and Economics Minister Guy Parmelin said. Parmelin is also a wine grower.

Critics warned that the measure could lead to overproduction and increase price pressure, particularly affecting small producers. The minority that opposed the proposal argued that winegrowers themselves should create stocks and balance out differences in harvest volumes.

In years with strong harvests, more grapes could be harvested and stored as AOC wine reserves. The reserves could then be released after poor harvests to help maintain the market share of Swiss wine.

Wine expert Andreas Keller said the measure would probably benefit producers handling larger volumes, who are mainly found in western Switzerland. Kamm and Keller both said the reserve’s impact would depend on how it was implemented.

Kamm said the voluntary, cantonally regulated system would require more controls and effort, adding that simpler solutions might have been possible.

Dispute over import quotas

Another measure recently put out for consultation concerns wine imports. It would redistribute import quotas in favour of companies that process Swiss grapes. The Federal Council’s response is still awaited.

“That will be a difficult interpretation for Federal Councillor Parmelin,” Kamm said, adding that the former wine grower was under intense pressure from both wine producers and the business community.

The industry is at least united on the need to boost wine consumption. Swiss producers account for slightly more than one-third of domestic consumption.