The French government has recently announced that 200 million Euros will be made available to fund the destruction of surplus wine production with the aim to support struggling wine producers and shore up prices.
A fall in demand, for various reasons has led to over production and it is stated that one in three wine makers in the Bordeaux region are facing major financial difficulties. Changes in consumption habits, the cost of living crisis and the after effects of covid have caused serious difficulties for many growers. European support funding was initially 160 million Euros, which has been topped up by a further 40 million. Agriculture minister Marc Fesneau stated the money ‘was aimed at stopping prices collapsing and so that wine-makers can find sources of revenue again’ but he stressed that the industry needed to ‘look at the future, think about consumer changes ... and adapt’
The south West Languedoc region has also been hit hard by the fall in demand, in some cases the sale price being below the production price. This region is the country’s largest wine producing area, well known for its full bodied reds.
Other public funds are also available for example to encourage grape growers to switch into other products such as Olives. Europe last suffered massive over production in the mid - 2000’s, the so called ‘wine lake’ which caused the European Union to reform its farm policy to reduce over production which was being stimulated by its own subsidies.
In a recent development with growers, things have got very heated in places, with French producers not just complaining but taking action and destroying hundreds of crates of Spanish Cava in protest over cheap imports. Around 500 vintners hijacked lorries in the border town of Boulou destroying their contents in what has been described as ‘economic war’ A 79 year old wine grower from the town of Ouveillan told the press that ‘ The Spanish have lower charges and the right to put all the chemicals they want on their vines while we have the right to do nothing. As a result Spanish wine costs half as much as French wine. A hectolitre of Spanish wine costs 40 Euros whereas it is almost 80 Euros here’
Alcohol from destroyed wine can be sold for use in products including hand sanitiser, cleaning products and perfume.
