Castile and León plans international push for wine sector as sales weaken
The regional government is preparing a dedicated internationalization plan while supporting winery investment, promotion outside the European Union and measures intended to address lower grape prices and imbalances between production and demand.
The regional government of Castile and León announced on November 6 that it will prepare a specific plan to help its wine industry expand internationally and will continue supporting investment in wineries. The initiative comes as the sector confronts weaker sales and falling grape prices.1
Joaquín Antonio Pino, the regional minister responsible for agriculture, livestock, rural affairs and environmental policy, presented the measures to the Economy and Finance Committee while outlining his department’s budget plans for the next fiscal year. He said the priorities are stronger promotion abroad, entry into new markets and better long-term planning during a difficult period for the industry.1
Investment and promotion outside the EU
Pino said the regional administration has awarded €10.02 million for investments in wineries and launched a program to promote wine in markets outside the European Union. He described Castile and León as already holding a leading position among Spain’s autonomous regions in foreign promotion.1
For the 2026/2027 period, Castile and León has 105 external-promotion programs representing €18.73 million in eligible expenditure and €11.24 million in subsidies.1
Prices, planning and market access
According to Pino, the sector is struggling to place production on the market while grape prices face downward pressure. He also attributed the strain to changing consumer habits and insufficient planning in previous years, when vineyard area expanded without a corresponding increase in commercial capacity.1
The government therefore regards promotion, internationalization and access to new markets as priorities. It also wants better production planning to prevent future mismatches between wine supply and demand. Broader export access and winery investment could diversify sales channels and relieve some pressure on producers facing slower sales and narrower margins, although the effect will depend on how widely the measures expand market access.1
The regional agriculture department has also supported studies of grape-production costs in different wine appellations. Pino said these are intended to improve supply-chain transparency and help ensure that payments to growers cover production costs, an increasingly sensitive issue as market prices decline while operating expenses remain high.1
Quality products, wine tourism and insurance
Pino said the government will increase funding delivered through the Technological Institute of Agriculture of Castile and León, ITACyL, to support differentiated-quality products and the Tierra de Sabor brand, with wine treated as a strategic product. He also called for stronger promotion of wine culture and wine tourism through certified Wine Routes, positioning enotourism as an additional source of support across the sector’s value chain.1
On production risks, the regional government will continue pressing Spain’s state agricultural insurance agency, ENESA, to broaden coverage for threats that Pino said are not adequately addressed. He identified downy mildew in vineyards as one risk requiring a stronger insurance response.1
Sources
Written by the Dionysus editors from the sources above.
