Macron’s government in France earmarks 200 million euros to support the disposal of excess wine within the country

The French government, led by President Emmanuel Macron, has designated 200 million euros, which is approximately $216 million, to address the issue of excess wine within the country.

This substantial financial allocation is intended to provide support to struggling wine producers who are grappling with reduced demand for their products.

The root of this challenge lies in the fact that the cost of producing wine has surpassed its current selling price, leading vineyards to incur losses for each bottle they sell.

This predicament is particularly pronounced in the Bordeaux region, where a combination of factors, including elevated living costs, decreased demand following the Covid-19 pandemic, and a hot European summer, has contributed to the problem.

In response to this situation, the French government is facilitating the disposal of surplus wine, offering the possibility of repurposing the alcohol for alternate uses like perfumes or cleaning products.

French Agriculture Minister Marc Fesneau emphasized that the goal of this initiative is to avert plummeting prices and to revive income streams for wine producers.

Fesneau reportedly stated that the initiative’s objective is to “prevent prices from collapsing and to provide winemakers with new sources of revenue.”

He encouraged wine producers to strategize for a sustainable future and to adapt their businesses accordingly.

To address the specific circumstances in Bordeaux, the agriculture ministry introduced a 57-million-euro fund in June, aimed at supporting the removal of approximately 9,500 hectares of vineyards in the region.

Producers are being encouraged to diversify their crops, possibly exploring options like cultivating olives. Originally, the European Union allocated 160 million euros for the wine disposal effort, with the French government supplementing the fund to reach the 200 million euro mark.

Despite ongoing challenges, the export of French wine and spirits remained a standout aspect for the country in 2022.

The Federation of French Wine and Spirits Exporters reported a remarkable 17.2 billion euros in exports for French wine and spirits, signifying a notable increase of 10.8 percent in comparison to the previous year, 2021.