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FRANCE UPROOTING VINEYARDS AS WINE DEMAND WANES

 * admin
 * October 6, 2024
 * Uncategorized

France, the world’s top wine producer, has secured €120 million ($132 million)
in European Union funding to uproot millions of vines as global demand declines.
The European Commission approved funding for permanent removal of the vines, at
a rate of of €4,000 per hectare, according an agriculture ministry statement.
That would imply a reduction of about 30,000 hectares, or 4% of the total area
covered by vineyards, according to a Bloomberg calculation.
“The situation of the wine sector is indeed worrying, with a very sharp drop in
the harvest forecast due to climate change but also to the drop in wine
consumption and a very tough competition,” the ministry said.
Global wine consumption continues to dwindle and production hit a 60-year low
last year. Chaotic climate change conditions, along with changing drinking
patterns and lacklustre economic conditions, are hurting producers around the
globe.
Australia earlier this year began destroying millions of vines to rein in
overproduction that has crushed grape prices and threatens the livelihoods of
growers and wine makers.
France has 789,000 hectares of vines, or 11% of the world’s vineyards, according
to agriculture ministry data. Production is seen dropping to 40 million to 43
million hectolitres, down from about 48 million last year and below the
five-year average, according to the forecasting department of the agriculture
ministry.
The funding for the campaign “provides immediate support in the face of the
market crisis facing the sector by contributing to the rebalancing of production
volumes with regard to demand”, according to the statement.


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