For The Love Of Port

Happy S. João! To those interested in regulatory matters, on this day Law 19/2016, of 24 June, was published, defining the appointment of a special committee which has the mission to solve the financial problems of the Casa do Douro: identify the assets, propose payment plans for existing debts, sell wines, etc.

That is interesting news.
Do you have access to updated information as to the ports/wines they have in stock?

Last I heard a couple years ago they still had a large amount of stock in barrel. I know, as was reported then, TFP bought a large lot from them of their better tawny's.

The better question is; Is it wise to try and resurrect and bring back this way of doing business in the Douro? Then again, given what may come to the EU down the road now that the UK has voted to leave might be a good reason to bring it back?? Thoughts?

There is a place for the Casa do Douro, as part of their involvement was to help the growers obtain fair prices for the grapes and set minimums.

And do you think the Casa can still do that better than the market or beneficio?

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Market interventions by regulatory bodies are usually well intentioned but also usually end badly.

Moreover, buying excess production is also a very inefficient form of intervention that often does little more than store up problems for the future.

Far better to closely monitor production and consumption, and incentivise the owners of the poorest quintas to let them lie fallow when the market is saturated, than to start filling warehouses.

Even then though, it is probably better to limit intervention to periods of severe and unforeseen market stress, than to attempt a running micromanagement of the trade.

As for the EU, well Brexit was just the starting gun - in five years time it will either be massively reformed or gone the way of the Warsaw Pact..

Tom Archer wrote:Market interventions by regulatory bodies are usually well intentioned but also usually end badly.

Moreover, buying excess production is also a very inefficient form of intervention that often does little more than store up problems for the future.

Far better to closely monitor production and consumption, and incentivise the owners of the poorest quintas to let them lie fallow when the market is saturated, than to start filling warehouses.

Even then though, it is probably better to limit intervention to periods of severe and unforeseen market stress, than to attempt a running micromanagement of the trade.

As for the EU, well Brexit was just the starting gun - in five years time it will either be massively reformed or gone the way of the Warsaw Pact..

This sums up my thoughts quite well. Having something that regularly tries to manage issues buy simply buying up excess or stuff so cheap no one wants it is a disaster in the making.

The CdD failed once already. Do you think trying to effectively restart the machine under similar conditions and rules will end well?

Do you think trying to effectively restart the machine under similar conditions and rules will end well?

Didn't someone once define insanity as doing the same thing over and over again, whilst expecting a different outcome each time..?

Tom Archer wrote:

Do you think trying to effectively restart the machine under similar conditions and rules will end well?

Didn't someone once define insanity as doing the same thing over and over again, whilst expecting a different outcome each time..?

I think they made a movie about something similar.