France is proud of its wines, but also of the whole ritual that accompanies the consumption of fine French wine. This is why UNESCO has recognized the regions of Burgundy, Campania and Saint Emilion as “world cultural heritage” monuments. And yet, today many producers in the south-west of France are struggling to survive. The sector is facing a crisis due to overproduction, especially in red wine. The most famous labels are of course still sold at…salty prices, reaching hundreds or even thousands of euros for a bottle. But, on the more economical options the profit margins are thin.

100,000 acres off the market

Wine producers are now looking at drastic solutions. They want to uproot vast tracts of land to reduce supply and rebalance the ever-decreasing demand. “On an area of ​​400,000 hectares we will either have to grow different varieties, or we will have to stop cultivation altogether,” says viticulturist Olivier Metzenger to local radio station Sud-Radio.

Industry representatives have begun relevant consultations with the French government. Speaking to DW, Christophe Chatot, from the Conseil Interprofessionel du Vin (CIVB) winegrowers’ association in Bordeaux, southwestern France, estimates that “it would be realistic to eradicate vineyards on an area of ​​100,000 hectares, which is equivalent to 10% of the total arable area.” .

For years the sector has been recording a decline in red wine sales in supermarkets, which traditionally represent almost 50% of turnover in France. In fact, in 2022 the reduction reached 15%, probably due to inflation. The CIVB predicts a further decline in consumption by 60% within a decade. But what is the reason for the continuous decrease in demand?

The experts speak of changes in consumption patterns, but also in daily habits. For example, while until recently a glass of red wine was a matter of course at the lunch table, many have now abandoned this habit. Beyond that, the French admit that mistakes have been made in the management of the industry, while, among other things, competition from winemakers abroad has intensified.

State subsidies for winegrowers

Now producers in the Bordeaux, Rhône and Languedoc regions are asking for help from the state to withdraw some of their production from the market. Indeed, with the assistance of the EU, the French government is willing to allocate 160 million euros, compensating producers to withdraw approximately two-thirds of the current surpluses from the market. Where will these huge quantities be channeled?They will be a raw material for the production of perfumes, antiseptics or even bioethanol. There is already relevant experience and know-how. In fact, in 2020, at the height of the coronavirus pandemic, the French Ministry of Agriculture had reserved millions of liters of wine for the production of liquid antiseptic.

All this is not enough to solve the structural problems of an industry that is increasingly dependent on exports. Of course, the resumption of exports to China, which had collapsed due to the pandemic, brings temporary relief. In the long term, however, the French government warns, producers will have to make the necessary adjustments to cope with reduced demand, but also to respond to the challenges of climate change.

Alsace still “endures”.

Today the winery employs one in three French people working in agricultural production. However, in the period 2000-2020 the total number of employees in the sector has decreased by 40% and no longer exceeds 52,330. But the crisis has not hit all of France’s wine regions. In Alsace, 90% of the vines produce white wine and, according to Manon Tizou, representative of the local winegrowers association CIVA, this is why they are not facing a crisis of overproduction.

As the Alsatians say, the state compensation they received during the pandemic was not even enough to cover their fixed expenses. As normality is restored to the market, they declare that they will not give away their wine for other uses – such as the production of liquid antiseptic – while not even thinking about uprooting arable land. “Our sales have been increasing continuously for years,” says Manon Tizou.