Professor Steve Stein, Director of the Center for Latin American Studies at the University of Miami, is currently co-authoring a book with Professor Ana María Mateu of the Universidad Nacional de Cuyo on the Argentine wine industry. It will be published in Spanish in Argentina by the Editorial de la Universidad Nacional de Cuyo. For the Argentine readers out there, keep an eye out for El vino y sus revoluciones: Una antología histórica sobre el desarrollo de la industria vitivinícola argentina. It should be hitting bookshelves sometime this year.
Profesor Steve Stein, Director del Centro de Estudios Latinoamericanos de la Universidad de Miami, está en el proceso de publicar con Profesor Ana María Mateu de la Universidad Nacional de Cuyo una antología sobre la industria vitivinícola argentina. Será publicado en castellano en la Argentina por la Editorial de la Universidad Nacional de Cuyo. Para los lectores argentinos, que tengan buen ojo para El vino y sus revoluciones: Una antología histórica sobre el desarrollo de la industria vitivinícola argentina. Debería estar en las librerías este año.
Showing posts with label history. Show all posts
Showing posts with label history. Show all posts
Sunday, February 11, 2007
Sunday, December 10, 2006
Origins of the Wine Industry
During the mid-1800s the majority of agricultural land was used for alfalfa, which fattened the cattle passing through from the provinces of Cordoba and Santa Fe en route to Chile. Yet, by the mid 1880s Mendoza found itself in the midst of an economic transformation due to the arrival of the railroad, rising agricultural production, and a steady influx of European immigrants (Scobie, p. 132). Winemaking technology was improving to extent that the same amount of acreage that produced 46 kg of wine in 1870 yielded 250 kg at the end of 1880. The acreage in vines also increased six fold between 1893 and 1913 and by World War I, vine acreage exceeded that of Chile and California (Sawer, p. 82). The improvement in technology and increase in overall acreage was able to meet a surging demand for wine from the growing immigrant population in the pampas region.
Government intervention in the wine industry virtually began at its inception. As a general rule, agricultural-based sectors were heavily influenced during the latter part of the nineteenth century, as the government pursued a liberal, export-oriented economy. The wine industry in Mendoza and the sugar industry in Tucumán seemed to parallel one another in their rapid growth at the end of the 19th century. Both involved heavy state intervention which led to multiple overproduction crises during the 20th century (Balan and Lopez, p. 392).
In Mendoza’s case, the national government built the Andes Railroad in 1885, connecting Villa Mercedes (San Luis), Mendoza and San Juan with Buenos Aires, coastal markets, and the northern part of the country. In addition to infrastructure, provincial laws in 1889, 1895, and 1902 exempted all grape production from taxes for the first five years of production. The province understood that the demand for wine would one day yield high tax gains, and indeed, in 1907 over 60% of provincial revenue originated in the wine sector (Richard-Jorba, p. 119).
On top of favorable subsidies, the federal government offered generous protection to the wine sector by imposing high import tariffs. Transport by ship from Europe to Buenos Aires was still cheaper than railroad transport from Mendoza, so the young wine industry sought protection from the well established industries in Europe (Sawer, p. 82). By 1914, the wine tariff had reached 80%. The federal government even erected barriers to trade ensuring no foreign wine could enter Argentina. Specifically, no wine could be imported from countries in which sugar was added to grape juice to increase the alcoholic content of the wine, even if the particular wine that was sent to Argentina didn’t use this technique. Since this method was used in at the least one instance in every wine producing country, foreign wine was effectively prohibited from entering the market (Sawer, p. 83).
After thirty years of remarkable growth, the national government created the Junta Reguladora de Viños (Wine Regulating Committee) in 1935 which would later become the Instituto Nacional de Vitivinicultura (INV) in 1959 (Footnote: The government did the same with the sugar and yerba mate industries). The state attempted to deal with overproduction, especially during the Great Depression when wine consumption fell dramatically. The INV regulated when and how much the growers could plant, when the harvest was to occur and how much the grapes would sell for. On the production side, INV monitored quality and encouraged diversification. The state’s role in the wine industry in Mendoza would undergo dramatic changes in the 1980s in the midst of an oversupply crisis.
Government intervention in the wine industry virtually began at its inception. As a general rule, agricultural-based sectors were heavily influenced during the latter part of the nineteenth century, as the government pursued a liberal, export-oriented economy. The wine industry in Mendoza and the sugar industry in Tucumán seemed to parallel one another in their rapid growth at the end of the 19th century. Both involved heavy state intervention which led to multiple overproduction crises during the 20th century (Balan and Lopez, p. 392).
In Mendoza’s case, the national government built the Andes Railroad in 1885, connecting Villa Mercedes (San Luis), Mendoza and San Juan with Buenos Aires, coastal markets, and the northern part of the country. In addition to infrastructure, provincial laws in 1889, 1895, and 1902 exempted all grape production from taxes for the first five years of production. The province understood that the demand for wine would one day yield high tax gains, and indeed, in 1907 over 60% of provincial revenue originated in the wine sector (Richard-Jorba, p. 119).
On top of favorable subsidies, the federal government offered generous protection to the wine sector by imposing high import tariffs. Transport by ship from Europe to Buenos Aires was still cheaper than railroad transport from Mendoza, so the young wine industry sought protection from the well established industries in Europe (Sawer, p. 82). By 1914, the wine tariff had reached 80%. The federal government even erected barriers to trade ensuring no foreign wine could enter Argentina. Specifically, no wine could be imported from countries in which sugar was added to grape juice to increase the alcoholic content of the wine, even if the particular wine that was sent to Argentina didn’t use this technique. Since this method was used in at the least one instance in every wine producing country, foreign wine was effectively prohibited from entering the market (Sawer, p. 83).
After thirty years of remarkable growth, the national government created the Junta Reguladora de Viños (Wine Regulating Committee) in 1935 which would later become the Instituto Nacional de Vitivinicultura (INV) in 1959 (Footnote: The government did the same with the sugar and yerba mate industries). The state attempted to deal with overproduction, especially during the Great Depression when wine consumption fell dramatically. The INV regulated when and how much the growers could plant, when the harvest was to occur and how much the grapes would sell for. On the production side, INV monitored quality and encouraged diversification. The state’s role in the wine industry in Mendoza would undergo dramatic changes in the 1980s in the midst of an oversupply crisis.
Introduction
In 1835, Charles Darwin laid eyes upon the spectacular Andes Mountains that lay before him. At the foot of the jagged, snow-capped ridges lay a small town called Mendoza. To many travelers, Mendoza looked like a paradise after the rugged two-week trek across the pampas from the European metropolis of Buenos Aires. But experienced explorer Darwin thought otherwise, “To my mind the town has a stupid, forlorn aspect to it…but, to those who, coming from Buenos Ayres, have just crossed the unvaried pampas, the gardens and orchards must appear delightful.”
The canals and the contrast in flora are some of the only aspects that remain in present-day
Mendoza. Twenty-first century Mendoza is home to a multi-billion dollar wine industry that is world renowned for its Malbec red wine. Geographically, Mendoza is located in the western region of Cuyo, bordered by the Andes Mountains and Chile in the west. It is known for its dry, hot summers and mild, yet humid winters. For centuries, the natives to Mendoza have utilized the rainwater that flows off the Andes Mountains each spring for hydroelectric power and irrigation.
With an emphasis on the past 15 years, this paper will explore the evolution of the wine industry since its initial growth in 1880. Although special attention will be paid to the impact of government institutions in the province of Mendoza, economic and historical factors will be explored as well.
The canals and the contrast in flora are some of the only aspects that remain in present-day
Mendoza. Twenty-first century Mendoza is home to a multi-billion dollar wine industry that is world renowned for its Malbec red wine. Geographically, Mendoza is located in the western region of Cuyo, bordered by the Andes Mountains and Chile in the west. It is known for its dry, hot summers and mild, yet humid winters. For centuries, the natives to Mendoza have utilized the rainwater that flows off the Andes Mountains each spring for hydroelectric power and irrigation.With an emphasis on the past 15 years, this paper will explore the evolution of the wine industry since its initial growth in 1880. Although special attention will be paid to the impact of government institutions in the province of Mendoza, economic and historical factors will be explored as well.
Thursday, November 23, 2006
Sorting Through the Vines: The Growth of the Mendoza, Argentina Wine Industry, Part I
In 1835, Charles Darwin laid eyes upon the spectacular Andes Mountains that lay before him. At the foot of the jagged, snow-capped ridges lay a small town called Mendoza. To many travelers, Mendoza looked like a paradise after the rugged two-week trek across the pampas from the European metropolis of Buenos Aires. But experienced explorer Darwin thought otherwise, “To my mind the town has a stupid, forlorn aspect to it…but, to those who, coming from Buenos Ayres, have just crossed the unvaried pampas, the gardens and orchards must appear delightful.” Those very gardens and orchards that Darwin observed were fed by carefully constructed canals designed to carry the melting snow water from the mountains, which fifty years later would serve the wine industry.
The canals and the contrast in fauna are some of the only aspects that remain in present-day Mendoza. Twenty-first century Mendoza is home to multi-billion dollar wine industry that is world renowned for its Malbec red wine. This paper will explore the evolution of the wine industry since its initial growth in 1880, with a special emphasis on the past 15 years. Although special attention will be paid to the impact of political institutions in the province of Mendoza, economic and historical factors will be explored as well.
In 1861, an earthquake leveled Mendoza killing over 8,000 people. At the time, the majority of agricultural land was used for alfalfa, which fattened the cattle passing through from the provinces of Cordoba and Santa Fe en route to Chile. Yet, by the mid 1880s Mendoza found itself in the midst of an economic transformation due to the arrival of the railroad, rising agricultural production, and a steady influx of European immigrants. Winemaking technology was improving and demand for wine was increasing due to the growing number of immigrants who created the demand. In fact, acreage in vines increased sixfold between 1893 and 1913. By World War I, vine acreage exceeded that of Chile and California.
During the latter part of the nineteenth century, agrarian provincial economies greatly benefited from government intervention. In Mendoza’s case, the Andes Railroad was built in 1885, connecting Villa Mercedes (San Luis), Mendoza and San Juan with Buenos Aires, coastal markets, and the northern part of the country. In addition to infrastructure, provincial laws were passed in 1881 exempting grape production from taxes. Laws in 1889, 1895, and 1902 exempted all grape production from taxes for the first five years of production. The province understood that the demand for wine would one day yield high tax gains, and indeed, in 1907 over 60% of state revenue originated in the wine sector.
In addition to subsidies, the federal government offered generous protection to the wine sector, by imposing high import tariffs, much like other agricultural sectors in Argentina. Transport by ship from Europe to Buenos Aires was still cheaper than railroad transportation from Mendoza, so the infant wine industry needed protection from the well established industries in Europe. By 1914, the wine tariff had reached 80%. The federal government even erected barriers to trade ensuring no foreign wine could enter Argentina. For instance, no wine could be imported from countries in which sugar was added to grape juice to increase the alcoholic content of the wine, even if the particular wine that was sent to Argentina didn’t use this technique. Since this method was used in at the least one instance in every wine producing country, foreign wine was effectively prohibited from entering the market.
More to come later...
Sources:
Charles Darwin, Journal of Researches, new ed. (London: John Murray, 1890), p. 353.
James R. Scobie. “Argentina: Patterns of Urbanization in Argentina, 1869-1914” in Latin American Research Review, Vol. 10, No. 2. (Summer, 1975), p. 132.
Sawers, Larry. The Other Argentina. Boulder: Westview Press, 1996, p. 82
Rodolfo Richard-Jorba, “Modelos vitivinicolas en Mendoza”. In Historia Economica & Historia de Empresas III. (2000), p. 119.
The canals and the contrast in fauna are some of the only aspects that remain in present-day Mendoza. Twenty-first century Mendoza is home to multi-billion dollar wine industry that is world renowned for its Malbec red wine. This paper will explore the evolution of the wine industry since its initial growth in 1880, with a special emphasis on the past 15 years. Although special attention will be paid to the impact of political institutions in the province of Mendoza, economic and historical factors will be explored as well.
In 1861, an earthquake leveled Mendoza killing over 8,000 people. At the time, the majority of agricultural land was used for alfalfa, which fattened the cattle passing through from the provinces of Cordoba and Santa Fe en route to Chile. Yet, by the mid 1880s Mendoza found itself in the midst of an economic transformation due to the arrival of the railroad, rising agricultural production, and a steady influx of European immigrants. Winemaking technology was improving and demand for wine was increasing due to the growing number of immigrants who created the demand. In fact, acreage in vines increased sixfold between 1893 and 1913. By World War I, vine acreage exceeded that of Chile and California.
During the latter part of the nineteenth century, agrarian provincial economies greatly benefited from government intervention. In Mendoza’s case, the Andes Railroad was built in 1885, connecting Villa Mercedes (San Luis), Mendoza and San Juan with Buenos Aires, coastal markets, and the northern part of the country. In addition to infrastructure, provincial laws were passed in 1881 exempting grape production from taxes. Laws in 1889, 1895, and 1902 exempted all grape production from taxes for the first five years of production. The province understood that the demand for wine would one day yield high tax gains, and indeed, in 1907 over 60% of state revenue originated in the wine sector.
In addition to subsidies, the federal government offered generous protection to the wine sector, by imposing high import tariffs, much like other agricultural sectors in Argentina. Transport by ship from Europe to Buenos Aires was still cheaper than railroad transportation from Mendoza, so the infant wine industry needed protection from the well established industries in Europe. By 1914, the wine tariff had reached 80%. The federal government even erected barriers to trade ensuring no foreign wine could enter Argentina. For instance, no wine could be imported from countries in which sugar was added to grape juice to increase the alcoholic content of the wine, even if the particular wine that was sent to Argentina didn’t use this technique. Since this method was used in at the least one instance in every wine producing country, foreign wine was effectively prohibited from entering the market.
More to come later...
Sources:
Charles Darwin, Journal of Researches, new ed. (London: John Murray, 1890), p. 353.
James R. Scobie. “Argentina: Patterns of Urbanization in Argentina, 1869-1914” in Latin American Research Review, Vol. 10, No. 2. (Summer, 1975), p. 132.
Sawers, Larry. The Other Argentina. Boulder: Westview Press, 1996, p. 82
Rodolfo Richard-Jorba, “Modelos vitivinicolas en Mendoza”. In Historia Economica & Historia de Empresas III. (2000), p. 119.
Tuesday, October 10, 2006
Day 2 / Día 2
Monday, October 8, 2006
Lunes 9 de octubre 2006
Hoy fui afortunado porque me reuní con el Jefe de Gabinete del Ministerio de Economía de Mendoza. Él fue muy amable conmigo al ofrecerme una hora de su tiempo para charlar sobre el crecimiento de la industria vitivinícola durante los últimos quince años.
Before discussing the current state of the industry, Mr. Aciar gave me a brief history in order to have a better understanding of current policies. To begin, he made very clear that there have been two great wine crises in Mendoza over the past one-hundred years (the wine industry in Mendoza dates back hundreds of years, but only really began to develop when the railroad was arrived in 1880, allowing Mendoza to tap into the Buenos Aires market). Not surprisingly, the first crisis came during the Great Depression. The wine industry was one of the agricultural industries hit the hardest because of the elasticity of wine consumption. During this period the state intervened, as it did with virtually every industry, and enacted even higher barriers to trade than what had been previously established. In fact, the wine industry had gone through smaller crises of overproduction twice before in 1901 and 1914-1915. In 1901 the government responded by eliminating a tax on wine while in 1914-1915 the government intervened by destroying over 10 million liters of wine and over 16,500 hectares of vines. Due to the dramatic drop of wine consumption during the Great Depression, the federal government created the Junta Reguladora de Viños (Wine Regulating Committee) which bought grapes, wine, and vineyards, taking them off the market to maintain a stable price. In 1959, the Junta would become what is now known as the Instituto Nacional de Vitivinicultura (National Wine Production Institute). (Sawyers, pp. 84)
Antes de discutir el estado actual de la industria, el señor Aciar relató una historia breve de la industria con la intención de contextualizar el conocimiento de la política actual. Para resumir, él estaba convencido de que hubo dos crisis en Mendoza durante los últimos cien años (la industria de vino en Mendoza tiene siglos, pero empezó a crecer rápido cuando el ferrocarril llegó en 1880, que permitió a Mendoza hacer llegar sus producciones a Buenos Aires). No es una sorpresa que la primera crisis del vino haya tenido lugar durante los años de la Gran Depresión. La industria vitivinícola era una de las industrias más afectadas debido a la elasticidad del consumo de vino. Durante este período el gobierno intervino, como hizo con todas las otras industrias (en reacción al Smoot-Hawley tarifa), e impuso tarifas más altas de las que había establecido. De hecho, la industria de vino había experimentado algunas crisis menores de sobreproducción en 1901 y 1914-1915. En 1901 el gobierno respondió a la crisis con la eliminación de un impuesto al vino y en 1915-1915 destruyó 10 mil millones litros de vino y más de 16.500 hectárea de la vid. A causa de la caída dramática del consumo de vino durante la Gran Depresión, el gobierno federal creó la Junta Reguladora de Vinos y compró las uvas, el vino, y los viñedos para sacarlas del mercado y mantener un precio estable. La Junta se convirtió en 1959 en lo que actualmente se llama el Instituto Nacional de Vitivinicultura.
The second great crisis to hit the industry was during the 1980s when there was a dramatic drop in domestic consumption. Aciar described hearing stories from politicians of that era in Mendoza, who said that they did everything they possibly could to boost demand in the country, but nothing was able to solve the sharp decline in consumption. Between 1977 and 1992, consumption in Argentina fell by 30%. By late 1992, the wine factories in Mendoza and San Juan were operating at an incredible 22 percent of capacity (Crecer 1993, cuadros 20 and 21, via Sawyers p. 88).
La segunda crisis que afectó a la industria ocurrió durante los años ochentas cuando tuvo lugar otra gran caída del consumo doméstico. Aciar describió las historias que él ha oído sobre todo lo que hacían los políticos en Mendoza para estimular la demanda en el país. Entre 1977 y 1992, el consumo de vino en Argentina cayó un 30%. A fines de 1992, las fábricas de vino en Mendoza y San Juan estaban operando a 22 %de su capacidad (Crecer 1993, cuadros 20 y 21, vía Sawyers p. 88). No entiendo bien.
The 1990s would be a decade that forever changed the wine industry. A national political economy that supported the Washington Consensus (http://en.wikipedia.org/wiki/Washington_Consensus) and a peso pegged at a one to one ratio to the dollar allowed massive foreign investment into Mendoza. Perhaps most importantly, the industry was able to use the overvalued peso to pay for the introduction of technical human capital. Before, the Argentine wine producers were unable to pay top enologists from Europe and the U.S. With the favorable exchange rate, new technology and expertise rushed into the Cuyo region. Even renowned French wine consultant Michel Rolland came to Argentina where he subsequently began his own vineyard.
Los años noventa representaron a una década que cambió para siempre la industria vitivinícola. Una política económica que siguió al Consenso Washington y respondió al sistema económico de la convertibilidad (un peso = un dólar) dólar que dejó una masiva inversión extranjera en Mendoza. Quizás lo más importante fue la introducción de un capital humano muy tecnológico desde Europa y los Estados Unidos. Antes, los productores del vino no tenían la capacidad de pagar a los enólogos de estos países. (Con un cambio favorable, la tecnología nueva y conocimiento vino rápidamente al región Cuyo) No entiendo qué querés decir con esta frase. Aun el famoso especialista y sommelier francés Michel Rolland vino a la Argentina y puso su propia bodega.
However by the end of the nineties investment and sales were sagging. The vineyards looking to export could not compete on the global scale due to the pegged peso. When the peso was unpegged in December of 2001, and immediately dropped to more than 3 pesos to the dollar, the exports quickly increased. Today the wine industry in Mendoza is worth over one billion dollars. More importantly, the peripheral industries – tourism, consultants, enologists, engineers, etc – are also worth about one billion dollars, according to Aciar.
Sin embargo, al final de los años noventas, las inversiones y ventas estaban descendiendo. Las bodegas que estaban buscando exportar no podían competir al nivel internacional a causa del peso a un nivel muy alto. Cuando el cambio del peso fue de tres a uno, las exportaciones incrementaron rápidamente. Hoy la industria vitivinícola en Mendoza vale cerca de un billón de dólares. Además, las industrias perfórales – el turismo, los consultores, los enólogos, los ingenieros, etc. – valen un billón de dólares, según Aciar.
After Aciar’s historical background, he discussed at length the actions of the provincial government in relation to the wine industry. In 1995, the governments of Mendoza and San Juan agreed to set aside 30% of all grape production for concentrated grape juice. At first I was a little confused by this, because 30% of all grape production is a lot of grape juice and I had never seen any grape juice in Argentina. Aciar explained that this juice in its pure form can be used as sugar concentrate. He said Argentina is currently the number one exporter in the world of sugar concentrate, with about 70% of it destined to the United States to be used in things such as soft drinks. Each year the Mendoza and San Juan governments meet to discuss the percentage of the grape harvest that must be used for sugar concentrate; in 2006 25% of the harvest is destined for sugar concentrate production.
Después de contar esta historia, Aciar discutió las acciones del gobierno provincial en relación con la industria de vino. En 1995, los gobiernos de Mendoza y San Juan acordaron limitar la cosecha de las uvas. El acuerdo proponía que el 30% de toda la producción de uva tenía que ser mosto. Al principio yo estaba un poco confundido porque el 30% de toda la producción de uvas es mucho jugo y nunca lo había visto en la Argentina. Aciar explicó que este mosto en su forma pura puede ser usado como una forma pura de azúcar. Él dijo que Argentina es actualmente el número uno exportador de mosto en el mundo, con el 70% del mosto destinado a los Estados Unidos para ser usado en, por ejemplo, las gaseosas. Cada año los gobiernos de Mendoza y San Juan se reúnen para discutir el porcentaje de la cosecha de uvas que puede ser usado para mosto. En 2006, el 25% de la cosecha es destinada para mosto.
Another governmental body that is very interesting is the ProMendoza Foundation. Started in 1996, ProMendoza is called a public-private foundation, receiving the majority of its funding from the provincial government and three private actors: the Chamber of Commerce and Industry, the Stock Exchange and the Economic Federation of Mendoza. ProMendoza was established to help promote Mendoza wine to the rest of world. For instance, if there is a wine festival in San Francisco, ProMendoza is probably there with a stand promoting Mendoza wine. ProMendoza also connects importers with wineries looking to expand their exports. What is interesting about ProMendoza is that it is a blend of two fields of thought: it combines neoliberal private enterprise ideals with the need for government oversight.
Otra institución del gobierno que es muy interesante es la Fundación ProMendoza. Iniciada en 1996, ProMendoza es una fundación publico-privada, y recibe la mayoría de sus fondos del gobierno provincial. Pero la fundación es manejada por cuatro actores: el gobierno, la Unión Comercial e Industrial, la Bolsa de Comercio y la Federación Económica de Mendoza. ProMendoza fue establecida para promover el vino de Mendoza al mundo. Por ejemplo, si hay una feria de vino en San Francisco, es probable que ProMendoza esté allí con un stand. También, ProMendoza conecta los importadores con las bodegas que buscan incrementar sus exportaciones. Lo que es interesante sobre ProMendoza es que combina los ideales neoliberales con la necesidad de la supervisión del gobierno.
Besides ProMendoza, the government is very active in preventing hail damage. Hail is an extremely serious problem in Mendoza, because a hail storm that only lasts 5 minutes can completely ruin a year’s harvest. In the San Rafael area of Mendoza, in the central part of the province, it is well-known that there is a 1 in 6 chance each year that your harvest will be destroyed by hail. The government combats hail using several measures. The main preventative method is to use airplanes that fly above the storm clouds and spray a chemical into the cloud, attempting to break up the hail that might be forming. The government pays the full cost of these flights. In addition, many winemakers use small roofs to put over the vines to protect against the hail. The government pays a large part of the interest rate when the winemakers borrow from a bank to install the protective roofs. Aciar said that a normal loan would have an interest rate of about 15%, but with the government subsidy the winemaker pays about 5% interest. The third way the government protects against hail is by paying a minimal insurance policy against the hail.
Además de ProMendoza, el gobierno trabaja para la prevención de los daños del granizo. El granizo es un problema muy serio en Mendoza, porque una tormenta de granizo que sólo dura cinco minutos puede arruinar toda una cosecha. En el área de San Rafael, en el centro de la provincia, todos saben que hay una probabilidad de 1 en 6 cada año de que la cosecha pueda ser destruida por el granizo. El gobierno lo combate con el uso de algunas medidas. Por ejemplo, la prevención con el uso de aviones que vuelan arriba de las nubes y ponen un químico en las nubes, intentando hacer pedazos al granizo. El gobierno paga el costo completo de los vuelos. Además, muchas de las bodegas usan techitos para proteger la vid contra el granizo. El gobierno paga una parte grande de la tasa de interés cuando las bodegas prestan el dinero para instalar los techitos. Aciar dijo que un préstamo normal tendría una tasa de interés cercana al 15% pero con el subsidio del gobierno, la bodega pagaría una tasa de interés del 5%. Una tercera ayuda del l gobierno a las bodegas contra el granizo es la compra de un plan de seguro mínimo.
In addition, the government pays for the electricity that is used to extract water from wells for irrigation. And, more importantly, there are no taxes on the wine industry from the provincial government. All in all, about 20 to 25% of the wine industry is subsidized by the government with the majority being measures taken to prevent crop loss from hail.
Además, el gobierno paga por la electricidad que se usa para extraer el agua de los pozos para la irrigación. Y, más importante aún, no hay impuestos provinciales para la industria. En síntesis, entre el 20 y el 25% de la industria vitivinícola es subsidiado por el gobierno con la mayoría de los fondos usados para las medidas preventivas contra el granizo.
Aciar concluded that the provincial government actively acknowledges that government intervention is necessary. In fact, the government has calculated that every six years there is a crisis in the industry. The next crisis should be occurring within the coming year, and in preparation the government bought thousands of hectares and kilos of grapes in order to try and counteract the pending crisis.
Aciar concluyó que el gobierno provincial reconoce que la intervención del gobierno es necesaria. De hecho, el gobierno ha calculado que cada seis años hay una crisis en la industria. La próxima crisis debe ocurrir durante el año que viene y en prevención el gobierno compró miles hectáreas de vid y kilos de uvas para intentar a aliviar la crisis.
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