Italy approves its first wine income stabilization fund for Trentino growers

Italy has approved a new crisis fund for winegrowers in Trentino, creating what the Agriculture Ministry described as the country’s first income stabilization mechanism dedicated entirely to the wine sector.

The measure, called the “1st Uva Fund,” is backed by the European Union’s Common Agricultural Policy and will be managed by Consorzio Difesa Produttori Agricoli Co.Di.Pr.A, or Codipra, in Trento. The fund was first announced in April and has now received final approval from Italy’s agriculture minister.

Under the program, growers who join the mutual fund can seek compensation if their income falls by more than 20% compared with their average farm income. In those cases, the fund can cover up to 70% of the loss, according to the ministry and Codipra.

The financing structure relies on CAP support. For every €3 paid by member companies, the European Union can contribute up to €7, the organizations said. The fund is intended to help winegrowers facing sharp income declines linked to market crises, price volatility or broader unfavorable economic conditions.

Codipra said the measure responds to growing instability for wine producers in recent years, including higher energy costs, rising technical input costs, swings in grape and wine prices and more complex international market conditions.

Giovanni Menapace, president of Codipra, told Gambero Rosso that the new tool would be “a fundamental element for the resilience and stability of Trentino wineries.” When the fund was first presented in April, he described it as a “paradigm shift” in the economic protection of wine businesses and said it would complement other existing tools, including a mutual fund focused on plant diseases.

Menapace also said at the time that the wine sector would gain a tool designed to respond not only to climate-related events but also to systemic crises.

The move could matter beyond Trentino. As wine producers across Europe face weaker demand, price pressure and volatile costs, Italy’s first CAP-backed income stabilization fund for wine may offer a model for other regions looking for ways to cushion financial shocks in the beverage sector.