The French Agriculture Ministry said on Monday it would give the wine industry additional support of 130 million euros ($149.80 million) for the further uprooting of vines, to guard against excessive output, adding it would also ask the European Union to chip in.
"The sector is suffering from a deteriorating situation, marked by the effects of climate change, which have repeatedly affected harvests for several years, the continuing decline in wine consumption – particularly red wines – and major geopolitical tensions," the ministry said in a statement.
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France has subsidised the removal of vines to counter oversupply in the face of falling wine consumption, an approach criticised by some producers for making southern areas more vulnerable to wildfires.
French wine production is expected to rise 3% from last year's rain-hit season but fall 13% from the five-year average as a heatwave and drought in August and smaller vine area cut output in some key regions, the farm ministry said in September.
"This new and very significant financial effort, despite a particularly difficult budgetary context and subject to the adoption of a finance bill, demonstrates the government's determination to save our wine industry in the long term and enable it to bounce back," Agriculture Minister Annie Genevard said in the statement.
French wine crisis ‘one of most serious in history’, warns industry
In a bold move to combat chronic oversupply and safeguard one of its cultural crown jewels, the French government has announced €130 million ($150 million) in aid to fund the uprooting of excess vineyards, as the wine industry grapples with declining global demand, climate extremes, and trade headwinds.Agriculture Minister Annie Genevard unveiled the "national crisis exit plan" on Monday, describing it as a "massive support package" to rebalance production and restore viability for struggling farms, particularly in vulnerable southern regions. The funding will finance a new permanent vine-pulling programme, with France also seeking additional contributions from the European Union's crisis reserve.This comes amid a perfect storm for French winemakers. The 2025 harvest is projected to rise 3% from last year's rain-plagued low but still fall 13% below the five-year average, hit by August heatwaves, droughts, and wildfires that scorched key areas like Bordeaux and the Rhône Valley.
Global wine consumption is slumping due to shifting habits, economic pressures, and tariffs – French red wine exports to top markets like the US and China have tanked amid geopolitical tensions. France, holding about 11% of the world's vineyards, has already subsidized vine removals in the past, but critics argue it heightens wildfire risks in the arid south.The aid package extends beyond uprooting: it includes €5 million to cover growers' social security contributions in 2025, prolonged drought relief through 2026, and €10 million from the Mediterranean Climate Agriculture Plan for adaptation measures. Genevard emphasized the sector's rural lifeline, noting it employs over 500,000 people and symbolizes national heritage.Industry groups welcomed the lifeline but called for more. "This is a step forward, but we need EU-wide action on distillation and market promotion to truly revive our vineyards," said Jérôme Bauer, head of the French Winegrowers' Confederation. Producers in oversupplied regions like Languedoc-Roussillon, where thousands of hectares are earmarked for removal, stand to benefit most.As global peers like Australia and Chile also uproot vines amid similar gluts, France's plan underscores a harsh reality: adaptation is no longer optional. With implementation slated for early 2026 pending budget approval, the coming months will test whether this infusion can prune back crisis or just delay the next vintage of woes.
