The Minister of Agriculture, Marc Fesneau made this Monday, February 6 a series of measures eagerly awaited by the wine sector which is facing repeated crises.
The meeting of this Monday, February 6 is moving things forward favorably for the wine economy, which is facing repeated crises: Covid, frost, inflation… The Minister of Agriculture Marc Fesneau assured the representatives of the sector of his agreement for the financing of temporary distillation of wines.
A first campaign will take place this summer thanks to the release “within the limits of the amounts authorized by European provisions” of €40 million in national credits supplemented by €40 million from the European funding envelope (EAGF)”, assures the minister. A second distillation campaign could be organized “from October… to reach a maximum of 160 million euros in 2023”.
Distillation: fight to obtain 200 M€
The previous campaign intended to help French winegrowers sell surpluses to transform them into alcohol, for the use of bioethanol or perfume dates back to 2020 in the heart of the coronavirus pandemic. “It’s a very good thing because it will allow us to have a good leverage effect, but we will fight to obtain 200 M€”notes Jérôme Despey, the Hérault winegrower, secretary general of the National Federation of Farmers’ Unions (FNSEA).
? To allow the market to rebound, a first distillation campaign will be launched now with 80 million euros in credits released. A second campaign may be organized for a maximum total amount of credits released of 160 million euros.
— Marc Fesneau (@MFesneau) February 6, 2023
A distillation which will concern 2.5 million hectoliters, mainly red wines and whose terms remain to be specified. Professionals maintain that the surplus weighing on the market today amounts to 3 million hectolitres.
Moving towards more resilience
Still among the economic announcements, the minister recalled the government’s announcement which extended and extended the state-guaranteed loan scheme (PGE) until the end of 2023. Where the FNSEA would like to be able to extend it to to 10 years on a “case by case basis to preserve cash”, recalls Jérôme Despey.
? To encourage farms to invest in protective equipment against climatic hazards, two windows of €20 million have been created. The Ministry will support the sector in the development of its strategic plan for the future, to move forward together towards greater resilience.
— Marc Fesneau (@MFesneau) February 6, 2023
In the same vein, two new offices for aid to investments in protection against climatic hazards will be endowed with a total of €40 million and should open “in the coming days”. “The ministry will support the sector in the development of its strategic plan for the future, to move forward together towards more resilience”, explained Marc Fesneau.
Green light for uprooting
From a structural point of view, the Minister gave the green light to the uprooting of the vines. A particularly awaited decision in Bordeaux, which is experiencing an unprecedented overproduction crisis for its entry-level wines.
Concerning the final uprooting, the State should seek the EAFRD, European agricultural fund for rural development in order to help winegrowers to convert. The idea is to give priority to abandoned vines reduced to a fallow state which, without treatment, risk transmitting golden flavescence to healthy vines. “The temporary uprooting of 5 years remains to be determined, which may more concern our Languedoc vineyards”, notes Jérôme Despey. A principle that leaves time for the winegrower either to replant vines or to pass the land on to a young farmer after 5 years.