The French government has designated $215.9mn (€200mn) to address the issue of surplus wine and offer assistance to wine producers, BBC reports.
This initiative arises amidst a series of challenges faced by the industry, including a decreasing demand for wine due to the growing popularity of craft beer. The wine sector is further grappling with problems of excessive production and the strain of rising living costs.
The majority of the allocated $215.9mn (€200mn) will be employed to purchase surplus wine, which will then be repurposed for various uses such as hand sanitizers, cleaning agents, and perfumes. Additionally, part of the funding will be set aside for vintners to transition to cultivating alternative products like olives, as a means to counter overproduction.
The intent behind infusing funds into the industry is to prevent the "collapse of prices" and enable wine producers to restore their sources of income, stated Agriculture Minister Marc Fesneau. This financial aid, which includes an original EU fund of $172.7mn (€160mn) topped up by the French government to $215.9mn (€200mn), emphasizes the necessity for the wine sector to anticipate changing consumer preferences and adapt for the future.
Data from the European Commission spanning the period up to June indicates a 7% decrease in wine consumption in Italy, 10% in Spain, 15% in France, 22% in Germany, and 34% in Portugal. Simultaneously, wine production across the European Union, which encompasses the largest wine-producing region globally, has witnessed a 4% increase.
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