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NewsRescue
According to Agriculture Minister Marc Fesneau, the French government and the EU would spend a total of €200 million ($216 million) to remove wine surpluses in a country known for centuries-old winemaking traditions. Officials in Paris blamed weak demand for overproduction and declining prices.
Fesneau noted at a press conference on Friday that the money is “aimed at stopping prices collapsing and so that winemakers can find new sources of revenue.” According to the official, the entire business should “think about consumer changes… and adapt.”
According to AFP, the wine’s alcohol may be marketed to companies that make hand sanitizers, cleaning goods, and perfume.
The celebrated Bordeaux region, as well as other parts of France, have been particularly hard hit.
AFP quoted Jean-Philippe Granier of the Languedoc wine producers’ organization earlier this month as saying, “We’re producing too much, and the sale price is below the production price, so we’re losing money.”
The French Agriculture Ministry said in June that it will set aside €57 million to support the destruction of approximately 9,500 hectares of vines in the Bordeaux area. Officials have also offered financial incentives to grape growers in order for them to transition to other products.
In June, the European Commission claimed that high inflation had reduced wine consumption. This, paired with a bumper crop in 2022, resulted in the surplus.
In June, the European Commission claimed that high inflation had reduced wine consumption. This, paired with a bumper crop in 2022, resulted in the surplus.
Wine consumption plummeted by 7% in Italy, 10% in Spain, 15% in France, 22% in Germany, and 34% in Portugal, according to data from the European Commission at the time.
Between January and April 2023, the bloc’s wine exports fell 8.5% compared to the same time last year.
