Traditional schnapps distilleries under threat from subsidy laws

Date: 10/04/03

By Karen Carstens

GERMAN MEP Elisabeth Jeggle has accused her government of failing to ensure that small-scale producers of schnapps, the strong fruit-based liquor, will continue to receive a special subsidy indefinitely.

"Renate Künast has really dropped the ball on this," said Jeggle, referring to the country's Green agriculture minister, who has opted to support only a limited extension of the €110 million Branntweinmonopol (spirits monopoly) subsidy until 2010.

According to the Christian Democrat MEP, Künast should have fought at EU level for the national subsidy to be extended long-term.

"This compromise solution really does not help anyone," said Jeggle, who comes from the south west of Germany, where much of the fruit for schnapps is grown in organic apple, pear and cherry orchards.

The European Commission effectively branded the national subsidy unfair in a report on agricultural alcohol products in February 2001. But Jeggle, along with other MEPs on the agriculture committee, has argued that distillers producing no more than ten hectolitres of alcohol annually should be exempt from EU rules barring such subsidies.

The German handout applies only to distillers who produce no more than three hectolitres per year. "Künast was thinking in a purely national context," Jeggle said. "An EU-wide exemption would have been much more comprehensive and much fairer."

Without the Branntweinmonopol subsidy, the natural landscape of southern Germany could be irreversibly spoilt, she warned.

Some 20,000 small distilleries and 200,000 orchard owners, which together produce about 83,000 hectolitres of alcohol a year, are affected.

According to the German environment organisation NABU, there are some 3,000 local varieties of Streuobst (scattered fruit) - a reference to the random locations of the organically cultivated trees, as opposed to mass fruit plantations - in Germany alone.

The cultivation of wild apples, pears, cherries, plums and walnuts began when the Romans brought the plants to southern Germany nearly 2,000 years ago.

The fruits experienced a renaissance in the 18th and 19th centuries and have formed part of the landscape ever since.

The orchards are hailed by environment groups for promoting organic farming.

Juice, cider, schnapps and other spirits made from organic fruits are also produced in France, Italy and in future member states including Poland and Hungary.

German MEP Elisabeth Jeggle has accused her government of failing to ensure that small-scale producers of schnapps, the strong fruit-based liquor, will continue to receive a special subsidy indefinitely.