Historical and legal background

Hungary, as a founding member of the O.I.V., possesses long traditions of grape growing and wine making. Like in many other suitable areas of Europe, evidence manifests that grapes have been cultivated and vinified in the Carpathian Basin for over two millennia.

Regulations concerning technical and legal questions of this activity were elaborated relatively early, aiming at the assurance of quality and the prevention of falsification. The first regulations of this kind originate in the 16th century. The first act on the wine communities, which is similar to the present act was issued in 1894 and was in force until the dictatorship government began after World War II.

The present act on the wine communities was published after the transition in 1989/90, on December 27 1994. The organizations of the wine communities were set up gradually: as the last one, the National Council of Wine Communities was founded on March 28 1996. At the preparation of the act on wine communities, both the old national traditions and the former act on wine communities were taken into account, and, in order to make it EU conforming, so was the legislation of the same field in the most prominent grape and wine producing countries of the EU.

Structure

At present, according to the Central Statistical Office, Hungary has approximately 130,000 hectares for grape-growing, out of which, the wine communities control approx. 76,000 hectares, representing the area of the so-called "(quality) wine regions" and the so-called "wine producing areas". The latter are not closely attached to the wine regions but, for a long time, they have been producing wine of good quality and posses favourable sites for grape growing.

The system of the wine communities operates as a public body. This means that, according to the act, membership is legally binding for those involved in the wine sector (including grape growers and wine traders as well) but at the same time, within the legal framework, it is a self governing body operating similarly to the autonomous civil organizations.

The organization of the wine communities consists of three levels.

Its basic and most important units, the wine communities, are representing the vineyards located around one or a few communities (towns or villages) as well as harmonizing, co-ordinating and guiding wine production and trade of these areas. Hungary has a total of 313 wine communities at present.

The representatives of the wine communities belonging to a particular wine region form the Regional Council of Wine Communities. According to the act, it cannot command the wine communities; however, since it is formed out of their leaders and representatives, it strives to promote the establishment or maintenance of the uniform image of the particular wine region and tries to make sure that the wine communities do not harm each other neither in terms of technology, nor in trade or anything else. Today, Hungary has twenty-two wine regions and thus, twenty-two Councils of Wine Communities.

The presidents and an additional representative of each of the Councils of Wine Communities, plus the secretary general build up the National Council of Wine Communities, a body that has to represent the general interest of Hungarian wine sector and co-ordinate the technical and economical interest of the wine regions.

Educational and research institutions of the field, in addition to state administration and the representatives of numerous organizations of the sector, are involved in the work of the National Council and the Councils of Wine Communities, however, they only have consultation right.

The entire system of the wine communities is basically self-supporting, having the contribution paid by the members as its major financial resource. This is supplemented by state subsidy, since the wine communities carry out administrative activities that were formerly done by state organs (municipalities, agricultural offices, etc.).

Assignments

It is one of the major assignments of the organisation to guarantee the protection of origin. Therefore it regulates and controls planting as far as location, variety and other specific regulations are concerned. Through preparing and controlling the implementation of rules for the wine communities, it regulates those factors of grape and wine production and partly even of trade, which have major importance and largest impact on the quality. It is the head of the wine community that issues the certificate of origin for each quantity of grape produced, which is the basis in the control of the origin of the wine.

Producers have to declare their production and stock to the wine communities, which process the data electronically.

Another important field of the wine communities' activity is the formation of the image, or, where it is already established, its protection.

The National Council of Wine Communities acts as a product council, i.e. it is consulted by the government when questions of legislation or market measures or other issues concerning the wine sector are discussed.

Dr. András Urbán
Secretary general of the National Council of Wine Communities