France 230m support and vineyard removal
France's government is taking decisive action in response to the challenges faced by the viticulture sector, injecting over 230 million euros in additional resources alongside the existing support from the Common Market Organization (Ocm) for wine. These measures aim to address the concerns voiced by industry players, as articulated by organizations like the General Association of Wine Production (Agpv), representing key bodies such as the National Confederation of Producers of Wines and Spirits with Designation of Origin (Cnaoc), Vignerons Cooperators (Vcf), Vignerons Indépendants de France (Vif), Confédération des Vins Igp (VinIgp), and Fédération Nationale des Syndicats d’Exploitation Agricoles (Fnsea). Notably, there have been protests in various regions, reflecting the diverse sentiments within the French wine community and its intertwining with broader agricultural concerns.
Following Prime Minister Gabriel Attal's commitments, which generated mixed reactions within the industry, the government is releasing an official statement signed by Agriculture Minister Marc Fesneau. This communication aims to provide transparency and alleviate uncertainties. "The challenges faced by our winegrowers in the viticultural areas of the large southwestern crescent, southeast, and southern Rhone Valley are profound. The ongoing crisis in the wine sector particularly affects the southern regions of France. In this context, the French government reaffirms its commitment to supporting this vital economic sector at both national and regional levels, building upon previous years' efforts," explains the statement.
Specifically, the government announces the reinforcement of economic emergency support measures implemented in recent months, accompanied by fresh regulatory and financial initiatives. This includes "the immediate launch of an 80-million-euro emergency fund to assist winegrowers facing cash flow challenges due to unforeseen events. This nationwide program will be swiftly implemented under the guidance of departmental prefects in crisis-stricken wine areas. The application process opens on Monday, February 5, 2024, at prefectures, with initial payments scheduled before the International Agriculture Show" (taking place in Paris from February 24 to March 3, 2024).
Furthermore, the government will introduce "structural support from the state amounting to 150 million euros, supplementing allocations for the national wine program (Ocm, with a comprehensive budget nearing 300 million euros). This funding will facilitate deferred restructuring, including the 'uprooting without replanting' option to encourage agricultural diversification. Simultaneously, it ensures the continuity of other actions within the national aid program. This enables winegrowers opting out of wine production to remain in agriculture and invest in alternative productions suitable for their region and climate."
This specific measure regarding uprooting aligns with industry demands and is estimated to involve uprooting 100,000 hectares of vineyards, partially replaced by other crops. This surpasses the previously authorized 9,000 hectares primarily for "health" reasons in Bordeaux.
"Our wine industry is a source of pride and joy, shining a light on France. Beyond the economic fluctuations, the French wine industry faces a multifaceted structural crisis, marked by declining consumption, sluggish export sales, and the impactful effects of climate change on specific wine regions. The government stands firmly behind the winegrowers affected by this crisis, as promised. I will soon visit the Hérault region to personally present these measures," assures Agriculture and Food Sovereignty Minister Marc Fesneau.
The industry's response awaits further details, but the government's commitment continues amidst ongoing protests, with various initiatives, ranging from peaceful to more assertive, announced in different regions of France.