The uncertain situation faced by Bodegas Insulares de Tenerife (Bitsa), a company established in 1992 to modernize the island’s wine subsector and support producers, particularly from Tacoronte Acentejo, has reached a critical point. On December 29, the Cabildo Government decided not to extend the contract for the use of the facilities and equipment located in El Sauzal by the winegrowers, following legal reports from the corporation itself. This decision has heightened the urgency to find a consensus, ensure the 2024 harvest, and address the pressing social and economic challenges, while complying with European guidelines and avoiding disruptions for the company.
Recognizing the complexity of the situation, the island Government has set a nine-month period to navigate these challenges, as announced to the EU. This timeframe aims to reach a consensus, safeguard the 2024 harvest, and address the significant social and economic impacts with legal certainty, aligning with European regulations and ensuring fair treatment for the company.
One of the critical imbalances stems from the appraisal commissioned by the previous island government, revealing that the total value of the building, equipment, and machinery amounts to 2.6 million euros. This appraisal necessitates an annual fee of 159,000 euros based on the contract’s clause 3, which presents a financial burden for Bitsa, considering its annual profits are 50,000 euros.
There were alternative proposals to restore balance, such as a capital increase or contributions from member winegrowers, prior to the non-renewal of the ten-year contract. However, the situation has raised concerns about Bitsa’s ability to participate in a public tender, also emphasizing the interconnectedness with the losses of European aid. This has raised apprehensions about the future of around 300 producers in the region and the 2025 harvest if a suitable resolution is not reached.
Despite the uncertainties, there remains hope that a solution will be achieved during the designated period, allowing the company to continue and ultimately revitalizing the subsector. This sentiment is shared by workers from Bodegas Insulares, who remain hopeful for a positive resolution while ensuring the assurance of the 2023 and 2024 harvests.
OVERSIZED
The government emphasizes that they thoroughly explored alternatives before resigning to the decision regarding the non-renewal of the contract due to unfavorable reports. The Bitsa facilities are now considered ‘oversized,’ with a capacity for two million kilos of grapes receiving only 500,000 annually, attributed to the challenges faced by the subsector due to climate issues and field abandonment.
The government also stresses the importance of transparency and commitment to supporting the primary sector, emphasizing the need for cooperation and serious consideration, while addressing concerns and ensuring that no one is left stranded.
