The European Commission on Friday validated the principle of destroying surplus red and rosé wines in its member countries, including France and Spain, and compensating producers facing a market crisis.
Awaited by winegrowers for several months, this exceptional measure should allow them to transform excess volumes into pure alcohol that will be used by the industry (perfumery, hydroalcoholic gel, etc.).
Member States will have to “target” the regions or types of wine most affected by the imbalance between supply and demand. In France, it will be mainly Bordeaux wines. This territory has also launched a program to grub up surplus vineyards.
lower consumption
“Distilled wine is withdrawn from the market and the alcohol obtained can only be used for non-food purposes to avoid any distortion of competition”, specifies the Commission.
The wine sector is experiencing a drop in the consumption of its products, accentuated by the erosion of purchasing power – in times of inflation, consumers make decisions to the detriment of the wine department. Red and rosé wines are especially affected.
Difficulties selling stocks during the Covid-19 pandemic and then the bumper 2022 harvest have simultaneously filled cellars and led to falling prices for growers.
The total amount that the EU is willing to pay to compensate producers is not specified. EU member countries generally supplement their aid.
France, which has already carried out crisis distillations during the pandemic, plans to spend up to 160 million euros – half from national credits, the other half from European funds – to destroy surplus wine.
Source: BFM TV
