The French government is appealing to the European Commission for €120 million in financial aid to destroy 30,000 hectares of French vineyards, mostly in the Bordeaux region. The sector has seen a significant drop in both domestic and overseas sales, stemming in part from changing drinking habits.
With Bordeaux wines selling less in recent years, winegrowers have been forced to uproot vines to maintain sales costs and avoid overproduction.
The habit of drinking wine with the daily meal has fallen by 70 percent in the last 60 years, according to the French Observatory of Drugs and Addictive Tendencies (OFDT).
French people on average drink 40 litres per inhabitant, per year, compared to 120 litres of wine in the 1960s.
This trend has accelerated in the last three years, particularly for red wine. France Agrimer – a public body dedicated to agricultural development – says they have noted 15 percent fewer sales in supermarket chains in this period.
To deal with the crisis, the French government has submitted a plan to the European Commission to destroy around 30,000 of the 800,000 hectares of French vineyards, at an estimated cost of €120 million.
Volunteers winegrowers would receive €4,000 per hectare of permanently removed vines, just enough to cover the cost – and they must promise not to replant anything.
Struggling French winemakers may have to destroy their vintage cellars to survive
Drastic solution
All wine regions in France are eligible, but the crisis has particularly affected the Bordeaux wines.
The European Commission has one month to respond to France's request.
Even if the money is French, it would be taken from the so-called "Ukraine" emergency fund because the CAP (common agricultural policy) does not provide credit for removing the vines.
A similar plan is already in place in the southwestern Gironde area, financed by the state government, regional authorities and the Bordeaux wine inter-professional association.
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Although it is a drastic solution, winemakers have been forced to admit that profit loss is unsustainable and that the situation is unlikely to improve in the long term.
According to a study for the Vinexpo trade show, young people are turning away from wine, with less than a third of wine enthusiasts under 40.
They now prefer apéritifs - or cocktails - to long dinners, hence the increase in beer consumption. When they turn to wine, it's usually white, rosé or light red wine.
Exports down
Exports were down by 10 percent last year compared to 2022 and the market has not recovered since Covid, particularly with regards to China.
China is now producing its own wine and imports it generally from Spain or Italy, rather than France.
The wine-making industry has also suffered from other setbacks, linked to international trade – for example, the taxes imposed by Donald Trump in 2019 following the conflict between Airbus and Boeing.
Elsewhere, winemakers are also facing the consequences of climate change, many losing entire vineyards due to fierce storms, frost or cases of mildew in recent years.
(with AFP)
