The Generalitat is investigating 50 contracts in the wine sector for the purchase of grapes below cost price

BarcelonaThe Generalitat is launching an unprecedented offensive in the wine sector to assess whether grapes are being purchased below their production cost. As ARA has learned, the Department of Agriculture, Livestock, Fisheries and Food is investigating a total of 50 contracts susceptible to violating the Food Chain Law 16/2021, the state-level regulation that prohibits this practice. As sources close to the department point out, inspections began in August, some of which were prompted by complaints from farmers, organizations, or other professionals in the sector, and others ex officio.

Investigations into the wine sector are the responsibility of CadeCAT, the unit dependent on the department led by Òscar Ordeig, which is in charge of controlling commercial relations in the agri-food chain in Catalonia. At the moment, as explained by the sources consulted, the professionals of this body are requesting documentation from the involved parties to evaluate whether to open proceedings, which would imply financial sanctions. As of now, none of the 50 cases under study have moved to this next phase. In the event that grape buyers have committed illegalities, they would face fines of between 250 and 3,000 euros for minor infractions, between 3,000 and 100,000 euros for serious infractions, and, in the worst-case scenario, between 100,000 and one million euros for very serious infractions. It should be noted that the sanctions would not be final, as allegations could be filed.

The Generalitat's investigations are taking place in the context of a harvest in which the price of grapes has been one of the central debates. In mid-August, eight agricultural organizations – the Farmers' Union (Unió de Pagesos), the Penedès Winegrowers' Association, Asaja, JARC, the Requena Winegrowers' Association, the Community of Farmers and Ranchers of Almendralejo, the Farmers' Guild, and the Federation of Agricultural Cooperatives of Catalonia – issued a joint statement denouncing grape purchase proposals "well below" production costs.

According to sector data, several producers were offering prices notably far from the reference cost set by the Catalan Institute of Vine and Wine (Incavi), which this year stood between 53 and 56 cents per kilo. In the statement, agricultural organizations explicitly mentioned the wineries Jaume Serra, of the García Carrión group, the Can Pagès winery, and Vins Font. In all three cases, the estimated price of the grapes did not exceed 30 cents per kilo, according to the associations. In other scenarios, the same entities denounced that some wineries were even proposing formulas to disguise the price actually received by the producer, reaching a figure of just 12 cents per kilo.

Be that as it may, sources close to the department point out that the Incavi figure is only a reference and that CadeCAT technicians analyze each contract individually. At the same time, they remark that the investigations are confidential –they do not reveal any of the wineries involved– and that the initiation of the analyses does not prejudge the final result.

Following the controversy over grape prices in this year's campaign, sources close to the wine sector assure that, from the denominations of origin, they are trying to reverse the situation by 2027. In this sense, they indicate that, in parallel to the investigations, the producers are maintaining conversations with the public administration, unions, and agricultural cooperatives.

In any case, Minister Ordeig stated, in a recent interview with ARA, that the will of the Catalan government is not to sanction, but to maintain a "fair" grape price that prevents the loss of economic viability in the sector.

Farmers' demands

One of the farmers' demands would involve creating an official price observatory that establishes a minimum price in a transparent manner. According to sector organizations, this observatory should be supported by the food chain law to be effective. However, the farming community regrets that there is still a "lack of political will" to solve the problem.

This is precisely one of the reasons that has led the Unió de Pagesos union to call for a mobilization in Barcelona on Wednesday, October 14th. Farmers will arrive in the Catalan capital by bus and tractor, departing from various points across the country, and will gather in front of the Spanish Government Delegation, the Department of Agriculture, and, finally, the Palau de la Generalitat. The protest, which other organizations such as Asaja will join, will also convey the grievances of a sector affected by rising costs, unfair foreign competition, disruptions in production due to climate change, or livestock diseases.