France’s ministry of agriculture is allocating a €130m ($150m) sum to support a new grubbing-up plan for the local wine sector.
Annie Genevard, France’s minister of agriculture, agri-food and food sovereignty, yesterday (24 November) announced “a massive support plan” for the country’s wine industry that includes a funding package to support a permanent grubbing up scheme.
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“The government is allocating €130m to finance a new, permanent vine-pulling plan requested by the wine industry,” a statement from the ministry said.
“This effort aims to rebalance supply and restore the viability of struggling farms in the most vulnerable regions.”
France has already dedicated a significant chunk of money to vine uprooting.
In September last year, the country requested the Commission’s approval for a €120m campaign to help French winemakers destroy their unproductive vines. The EU authorised the plan the following month.
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By GlobalDataAs well as the latest €130m investment, the ministry said it has called on the European Commissioner for Agriculture and Food, Christophe Hansen, “to mobilise the European crisis reserve”.
The ministry has specifically called for the funds to be activated to support “the crisis distillation of non-marketable overstocks” mainly in cooperative cellars.
The Commission approved crisis distillation within the EU wine sector two years ago. Surplus wine in affected regions was allowed to be turned into spirits with a high alcohol content, for use as biofuels or in industrial applications.
Alongside the money for grubbing-up, the French agricultural ministry also confirmed yesterday it had released “an initial tranche” of €5m to help relieve social security contributions.
“The wine industry will again benefit from MSA (Mutualité Sociale Agricole) contribution relief next year, amounting to €10m,” the statement said.
The plan also includes the extension of “structural loans guaranteed at 70%” into next year from French public sector investment bank Bpifrance. The ministry said these loans are “subject to a revision of their criteria to better reflect the economic specificities of viticulture and will be extended to cooperatives”.
Genevard said: “This significant new financial commitment, despite a particularly challenging budgetary context and subject to the adoption of a finance bill, demonstrates the government’s determination to sustainably safeguard our wine industry and enable it to recover.
“This requires targeted support for the most vulnerable farms, adapting our support mechanisms to the realities on the ground, and taking decisive action at the European level.
“This is not just another emergency plan to correct a structural imbalance; it is an investment to give our wine industry and the farmers in these production areas a future. ”
A wine glut is affecting vintners across the EU. Germany has called on the bloc in recent months to consider expanding its plan for winemakers to grub-up vineyards.
In March, Brussels set out a range of proposals, including removing vineyards, in the face of declining wine sales.
In June, the European Council, the EU institution composed of the 27 member state governments, gave its backing to the package, albeit with suggested changes in other areas including labelling and rules for no-and-low wines.
However, in a submission to the EU’s Agriculture and Fisheries Council, the German government has suggested Brussels should go further on grubbing-up.
