French Vineyards on the Brink of Collapse
France's prestigious wine industry is fighting for its very survival, with its leading syndicate warning that up to a fifth of the nation's independent winegrowers risk going out of business. The president of the independent winemakers' syndicate, Jean-Marie Fabre, has declared that urgent government action is required to prevent a catastrophe for one of the pillars of the French economy.
A Perfect Storm of Crises
Vineyard owners are reeling from an unprecedented series of setbacks that have pushed many to the brink. This crisis is not due to poor quality wine but stems from a combination of external factors that have depleted cash reserves. The situation has become so dramatic that several thousand winegrowers protested in the southern city of Béziers, demanding a rescue package.
The litany of problems includes:
- A sales slump in both domestic and international markets.
- 15% tariffs imposed by the Trump administration on wine and spirits imports.
- The lingering impact of the Covid-19 crisis.
- Harvests decimated by heatwaves and hail, leading to some of the worst yields in 70 years.
- Russia's war in Ukraine, which increased production costs by a third.
Damien Onorre, president of the Aude winegrowers’ union, provided a stark example, stating he has lost 50% of his production over three years of droughts and extreme heat.
Economic Impact and Demands for Aid
The stakes are enormous. A survey by FranceAgriMer found that 20% of French winegrowers are considering shutting their business, a move that could lead to the loss of up to 100,000 jobs. The French wine and spirits industry has an estimated annual turnover of €92 billion and is a key industrial sector, directly or indirectly employing more than 440,000 people.
In a recent meeting with Agriculture Minister Annie Genevard, the industry outlined its demands. Key measures include:
Compensation for ripping up vines, with a scheme already seeing 27,000 hectares uprooted and another 35,000 hectares potentially facing the same fate. In Bordeaux alone, 12,000 hectares of vines have been destroyed.
Funding to distill unsold wine into biofuel to manage surplus.
An appeal to the European crisis reserve for financial support, a mechanism Portugal successfully utilised last year.
Jean-Marie Fabre, a fourth-generation winemaker, emphasised the gravity of the situation, stating, "This is the last chance. People are in a fighting mood but getting to the end of their tether. They either get support or they will have to shut." The outcome of the crisis talks will determine the future of an iconic French industry.
