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€2.1 Million Fund to Support Tenerife’s Winegrowers Amidst Water Shortages

December 29, 2024
in El Dia
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€2.1 Million Fund to Support Tenerife’s Winegrowers Amidst Water Shortages
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€2.1 Million Fund to Support Tenerife’s Winegrowers Amidst Water Shortages

“This decision was essential to safeguard the wine sector on the Island. The Minister of the Primary Sector of the Cabildo of Tenerife, Valentín González, states this firmly while discussing the exceptional grant of €2.1 million in 2025, with a limit of €100,000 per beneficiary producer, designated for the Tenerife wine sector. This is a vital financial boost aimed at alleviating the almost persistent drought affecting the island’s agriculture.

González elaborates that “in the administration of this assistance, the Regulatory Councils—there are five with six Designations of Origin—will function as collaborating entities of the Cabildo to distribute these funds to grape producers in order to mitigate the production losses arising from the ongoing drought.

Urgent and Extraordinary

Valentín González further explains that “this fund is the outcome of an urgent and extraordinary budget modification.” He acknowledges the effort required to “persuade” the Treasury department led by island director Juan Carlos Pérez Frías, “to financially assist Tenerife winegrowers in compensating for the income losses resulting from reduced production in the current crop, predominantly caused by the drought afflicting the Tenerife countryside in recent years.”

Collaboration

González underscores that “to allocate this aid efficiently, considering the areas most impacted by the climatic conditions, we have facilitated the signing of an agreement with the five Regulatory Councils of Tenerife.” This partnership positions them as collaborating entities of the Cabildo to distribute these subsidies fairly among grape producers across the Island.

The Minister of the Primary Sector emphasises that “for the Cabildo, it is imperative to contribute to the support of wine farms that have been severely impacted by the effects of the prolonged drought and insufficient cold hours necessary for the normal growth of the crop throughout the year.”

The vine, he insists, “is crucial from an agricultural perspective, not only for the economic significance of its production but also for environmental, landscape, and cultural reasons.”

Eligible beneficiaries of this aid will include all active winegrowers on the Island (both individuals and legal entities) responsible for winegrowing activities. The amount each producer will receive will be proportional, aimed at assisting in covering a portion of the production costs incurred due to the weight of grapes that were not produced (drop in production) in the current harvest, with compensation set at €1,053 per kilo, in addition to an allocation depending on the declared area in 2024, capped at 300 hectares.

The aid awarded to each beneficiary, as announced recently in the Official Gazette, must not exceed the maximum amount of €10,000.

Lastly, it is vital to remain compliant with tax obligations and ensure there are no debts with public administrations. Beneficiaries must meet these criteria for the entirety of the subsidy period, in addition to submitting applications within 45 days from December 25.

Water Emergency

Tenerife continues to be in water emergency status since its declaration in May 2024, which will be reviewed after an additional three months starting in February. The severity and persistence of the drought have significantly impacted grape production, leading to considerable income losses. The Governing Council of the Cabildo approved these extraordinary aids on December 20. The crisis affecting the subsector is grave, complicated by two factors: the aforementioned prolonged drought and the insufficient cold hours needed for crops to develop normally. This results in weakened plants, ultimately leading to the abandonment of vineyards.

Production

Tenerife boasts the largest vineyard area, accounting for approximately 65% of the total in the Canary Islands. Its diverse geography, particularly the unique climatic zones (though unfortunately diminishing), hosts numerous vine varieties that have become extinct elsewhere on the planet.

The island’s most remarkable characteristic is its climatic diversity, which fosters a rich variety of grape options. Currently, vineyards cover 2,500 hectares in Tenerife, operated either independently or in combination with other crops. This area has seen a continual decline, which these aids seek to reverse.

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