Subscribe Login
DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
Drinks

France To Spend €200m To Destroy Surplus Wine

By Branislav Pekic
Share this article

The French government has announced plans to destroy surplus wine in an attempt to support struggling producers and raise prices.

According to Agriculture Minister, Marc Fesneau [pictured left], an initial EU fund of €160 million for wine destruction will be topped up to €200 million by the French government.

The alcohol from the destroyed wine will be sold to companies for use in non-food products, such as hand sanitisers, cleaning products, and perfumes.

Discussions with the European Commission resulted in a European regulation, published in June, that authorises and regulates aid for the 2023 wine producing campaign.

It will help the sector to deal with market disruptions encountered in red and rosé wines in the three PDO and PGI segments, as well as wines without GI (Geographical Indication) from wine-growing areas other than Rhône-Provence and Loire Valley Center.

ADVERTISEMENT

The government is also setting out a strategic plan for the future of the French wine sector to make the necessary adaptations related to climate change and the evolution of domestic and export market demands.

Several wine-producing regions in France are suffering due to a series of challenges, ranging from changing consumption habits to the cost-of-living crisis, and the consequences of COVID-19.

According to the Bordeaux farmers' association, falling demand for wine has led to overproduction, a sharp drop in prices, and severe financial hardship for one in three wine producers.

France: The World's Biggest Wine Producer

Despite all the problems, for the first time in years, France is set to surpass Italy as the world's largest producer of wine in quantity, if the first estimates on the current harvest marked by the heat are confirmed.

ADVERTISEMENT

Italian farmers lobby group Coldiretti estimates a production drop of 14%, to around 43 million hl, compared to 50 million recorded last season, making 2023 one of the worst years in the history of the Italian wine production in the last century.

In France, despite the damage caused by fungal disease Peronospera and drought, estimates from the French Ministry of Agriculture show that production could range between 44 and 47 million hl, in line with the average for the period 2018-2022, while Spain is expected to produce 36 million hl.

Get the week's top grocery retail news

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our terms & conditions and privacy policy. You can unsubscribe at any time.
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days
Enjoy unlimited digital access for 30 days
Get exclusive access to the latest grocery retail & FMCG news, interviews with industry leading executives, and expert analysis on the trends shaping the sector today
Enjoy unlimited digital access for 30 days