Douro split over vineyard cuts and local spirit plan

Portugal’s Douro wine region is considering two contentious measures to tackle a long-running wine sector crisis: removing 5,000 hectares of vineyards and turning surplus grapes into regional wine spirit for Port and Moscatel production. ECO reporting shows the proposals matter beyond the region because they go to the heart of how Portugal’s best-known wine area balances oversupply, producer incomes and value creation in a weakening market.

The vineyard removal plan is part of an executive strategy for the sustainable management and upgrading of the Douro demarcated region for 2026-2032. The package aims to cut surpluses by 20% over six years and raise average grape prices by 10% to 15%, according to Agriculture Minister José Manuel Fernandes, and also includes tighter controls on new plantings, transfers and replanting.

But the proposal has exposed sharp divisions. Rui Paredes, head of growers’ body Casa do Douro, said he does not reject vineyard removal outright but argued it cannot be the only answer and should not leave small and medium growers carrying the burden. Manuel Cordeiro, mayor of São João da Pesqueira, opposed the measure, warning it could undermine one of the region’s main economic and social anchors. By contrast, António Filipe, president of the Port Wine Companies Association, and Adrian Bridge, chief executive of Fladgate Partnership, described a reduction in planted area as a structural step to bring supply closer to demand, while saying growers should be compensated.

A separate proposal to require the use of regional wine spirit has also split the sector. A bill backed by JPP was approved in principle in parliament on January 30 and is now under detailed review. Supporters such as Casa do Douro and Cordeiro see distillation as a way to absorb grapes the market does not buy and keep more value inside the region. Wine companies strongly oppose making it mandatory, and a study requested by the agriculture minister concluded the measure was technically unworkable, economically unsustainable and strategically risky.

The debate reflects a broader problem in the Douro: not only how much wine is produced, but how much can be sold and at what price for growers. Across the sector, the common ground is that emergency measures alone will not solve the crisis unless they also improve the economics of grape production and preserve value in the region.

Originally published at Eco.pt