2023-06-23 16:39:00
“As part of the national aid programs for the wine sector, Member States will now be able to use crisis distillation to eliminate surplus wine from the market”she said in a statement.
Awaited by winegrowers for several months, this exceptional measure should enable them to transform excess volumes into pure alcohol which will be used in industry (perfume, hydroalcoholic gel…).
Member States will have to “target” the regions or types of wine most affected by the imbalance between supply and demand. In France, this will mainly be Bordeaux wines.
This territory has also set up a program for uprooting surplus vines.
“The distilled wine is withdrawn from the market and the alcohol obtained can only be used for non-food purposes to avoid any distortion of competition”says the Commission.
“It was necessary to adopt temporary market measures to prevent unsold wines from weighing down the entire internal market and preventing producers from finding sufficient storage capacity for the new harvest”she justifies.
Fall in prices for producers
The wine sector is experiencing a decrease in consumption of its products, accentuated by the erosion of purchasing power – in times of inflation, consumers arbitrate to the detriment of the wine department. Red and rosé wines are particularly affected.
The difficulties in selling stocks during the Covid-19 pandemic and then the abundant 2022 harvest have, at the same time, filled the cellars, and led to a drop in prices for producers.
“The drop in wine consumption for the current campaign is estimated at 7% in Italy, 10% in Spain, 15% in France, 22% in Germany and 34% in Portugal”, according to the Commission.
The overall amount that the EU is prepared to pay for compensate producers is not specified. EU member countries generally complement its aid.
France, which has already carried out a crisis distillation during the pandemic, plans to spend up to 160 million euros – half on national credits, half on European funds – to destroy wine surpluses.
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