Attractiveness of Czech winegrowing and wine-production in the stage of adaptation to the united market of the European Union

The paper focuses on the viniculture sector in the Czech Republic in the stage of its adaptation to the united EU-market. The period before the entrance of the Czech Republic to the EU can be characterized by an effort to develop the necessary resources for its quantitative and qualitative growth at the maximum possible level. Evaluation of this period comes from analysis of: legislature and governmental and EU laws, directives and measures, development of the area of vineyards, human resources and businesses, wine market in the Czech Republic and the European Union, financial support of winegrowing and wine-production, structure of wine production, and price of grapes. Legislature for this sector had been changed in relation to the legislature of the EU – the main impacts being in registration of vineyards, the ban on new planting. Area of vineyards was enlarged by about 7 thousand hectares, and the main focus in the near future will be directed to their renewal – because of the age of the vineyards and bad heritage from the past in terms of low investments. The size structure of business subjects changed as well. Production potential is 19.3 thousand hectares of vineyard, there is filed more than 18 thousand wine-growers and nearly 600 wine producers. There is a potential for 20 thousand jobs in this sector, and considering the limited production area of vineyards, this projects into a high influence on the character, and development level of these areas. Consumption of wine is gradually increasing (16.5 litres per habitant per year, as yet). Prices, which were found, are relatively stable in the period of focus, with differences between white and blue varieties. Whereas the financial support of winegrowing was focused on enlarging the area of vineyards, in the pre-accession period, it is redirected to the restructuring of vineyards, integrated production of grapes, and reproduction of vines, in the current period. Wine imports constantly outweigh the exports in volume and value. Prices of grapes have been stable, in the past three years, but the price in 2005 was negatively influenced by wine imports. The analysis is summarized using the industry attractiveness evaluation matrix. It evaluates the selected influences with regard to the wine-production industry, which is evaluated as not very attractive, especially due to the low profitability of winegrowers, excessive regulation, and differences in financial support in different EU-member states.