Wine: France destroys excess production
200 million subsidies for producers heavily penalized by the drop in demand
In France, the wine sector continues to be in serious difficulty. After last April, the government was forced to finance the uprooting of almost 10,000 Bordeaux vines with 38 million euros, the next step will be a further 200 million to support producers in difficulty in supporting costs. The Bordeaux farmers' association has denounced a drop in demand, and therefore in prices, which has plunged at least one out of three winegrowers into a deep crisis. As stated by Agriculture Minister Marc Fesneau , the fund for the destruction of wine has been raised to 200 million from the 160 million initially allocated.
The resources are "aimed at stopping the collapse in prices and ensuring that wine producers can find sources of income again", however the sector will have to "look to the future, think about consumer changes... and adapt", he added the minister. Even in Languedoc, the region with the highest wine production, there is a black crisis. The alcohol made from the destruction of wine can be sold to companies to be converted into other products such as hand sanitizers, cleaning products or perfumes. Other ministerial funds have been reserved for wine producers, to encourage them to change crops (especially olives).
When approving emergency aid for the sector in June, the European Commission said that wine consumption for the current year was estimated to fall by 7% in Italy, 10% in Spain, 15% % in France, 22% in Germany and 34% in Portugal. The Commission added that the most affected vineyards are those producing red and rosé wines in some regions of France, Spain and Portugal.
EFA News - European Food Agency