France, one of the world's leading wine producers, will allocate 130 million euros ($150 million) to help farmers cut down vineyards in a sector severely affected by climate change, weak global demand, and trade wars. This is reported by Bloomberg, writes UNN.
Details
The publication notes that the government is allocating these funds to finance a new permanent plan for the elimination of vineyards, said Agriculture Minister Annie Genevard. Other measures include extending structural loans until the end of 2026 and reducing some social contributions.
Global wine consumption is declining due to changing consumption patterns, weak economic conditions, and trade wars, which are harming producers worldwide. France lowered its wine production forecast this year to below the historically low level of 2024 after droughts and wildfires hit vineyards.
Genevard also appealed to the European Commissioner for Agriculture and Food, Christophe Hansen, to mobilize crisis reserves to finance the distillation of unsold surpluses, which can be used to produce perfumes, disinfectant gels, and ethanol.
Addition
Consumption of French red wine has suffered due to geopolitical tensions, which have limited exports to the largest markets of the US and China, Genevard noted. The country owns about 11% of the world's vineyards.