France will write off 200 million euros worth of wine in the cellars , as demand plummets for heavy reds , Bordeaux and Languedoc.

The government of France has revealed its intention to allocate €200 million for the purpose of financially supporting struggling wine producers and stabilizing prices by eliminating excess wine production. In the bid to save some large wine producers and fix prices.

Numerous significant wine-producing areas in France, notably the Bordeaux region, are currently facing challenges due to a combination of factors including shifting consumer preferences, the impact of the cost of living crisis, and the lingering consequences of the Covid-19 pandemic.

A decrease in wine demand has resulted in an overabundance of production, leading to a substantial drop in prices and significant financial hardships for as many as one out of every three winemakers in the Bordeaux region, as reported by the local farmers' association.

The French Minister of Agriculture, Marc Fesneau, informed journalists on Friday that the initial EU fund of €160 million designated for wine disposal has been increased to €200 million by the French government.

The Languedoc region, located in the south-west of France and renowned for its robust red wines, has been severely affected by the decline in wine demand.

The alcohol extracted from the discarded wine can find a market in non-food products such as hand sanitizers, cleaning agents, and perfumes, when sold to companies.

In June, the agriculture ministry also unveiled a fund of €57 million to facilitate the removal of around 9,500 hectares of vineyards in the Bordeaux region. Additionally, public funds are accessible to encourage grape-growers to transition to alternative crops like olives.

A historical context: Europe confronted a similar scenario of surplus wine, known as a "wine lake," during the mid-2000s. This compelled the EU to reform its agricultural policies, aimed at curbing the significant overproduction of wine that was being amplified by its own subsidies.

Presently, the 27-member bloc continues to allocate €1.06 billion annually to the sector, as indicated by EU data.

The wine industry has been grappling not only with a long-standing trend of consumers shifting towards beer and alternative beverages but artisan brewers are now having a hard time of it also…but also with the adverse impacts of the Covid-19 pandemic. The global closure of restaurants and bars led to a considerable drop in sales.

Recent escalations in the costs of food and fuel, influenced by surging global energy prices and geopolitical events like the Russian incursion into Ukraine, have additionally prompted consumers to tighten their expenditure on non-essential commodities such as wine.

A good time to go natural perhaps..or diversify into other crops. as long as the EU and France are willing to subsidise over-production there will always be a large glut in production. As large wine makers push into the outdated pre war common agricultural policy of the EU.

With the need for more draconian environmental controls being thrown around by the media on a daily basis , it appears that large commercial vineyard estates with dubious farming practices will be the main precipitants of funds and help, rather than change practices , downsize and diversify the Eu are giving with one hand and taking away with the other.. No doubt the small artisanal natural winemakers won’t see a penny of these funds.

• Questions no doubt will be asked.

• Who gets the money ?

• Why do they get the money ?

• who do they know in government ?