France has a wine oversupply problem. Therefore, the country decided to destroy bottles of this drink. It will allocate EUR 200 million for this purpose.
France is struggling with the problem of oversupply of wine. As the website newshandlowe.pl writes, this is the result of changing attitudes of citizens who, along with the increase in the cost of living, have reduced their consumption. The high supply resulted in a serious drop in prices and financial problems for producers.
The largest wine regions in France are in a difficult situation, namely Languedoc (famous for its strong red wines) and Bordeaux (every third wine producer there has financial problems).
Millions of euros for the destruction of wine
Help is to be provided by destroying wine bottles. However, this does not mean that the product should be disposed of. – The alcohol is to be recovered and can be used in non-food products such as cleaning products, disinfectants and perfumes – says the portal.
The government will allocate EUR 200 million to destroy wine surpluses.
Reducing the product volume is also expected to result in an increase in prices. Producers hope that thanks to this they will be able to make up for some of their losses. The problem is that the group of potential buyers will shrink even further.
The website reminds that this is not the first aid of this type by the French government for wine producers. In June, the Ministry of Agriculture announced the allocation of EUR 57 million to help eliminate over 9,000 hectares of vines in the Bordeaux region. The idea was to counteract overproduction. Public funds have also been prepared to encourage grape growers to retrain and switch to other products.
France is one of the world’s largest wine producers. It is estimated that this year production will amount to 44 to 47 million hectoliters of this alcohol.