France to spend $150 million uprooting vines as wine demand dips

Worker picks white grapes during the grape harvest season in the Champagne region, in Chouilly, eastern France (AP/File Photo)

France, one of the world’s top winemakers, will disburse €130 million ($150 million) to help farmers uproot more vines in a sector hit hard by climate change, weak global demand and trade wars.

The government is allocating the funds to finance a new permanent vine removal plan, Agriculture Minister Annie Genevard said in a statement. Other measures include the extension of structural loans to the end of 2026 and the reduction of some social charges.

Global wine consumption is dwindling as changing drinking patterns, lackluster economic conditions and tariffs wars hurt producers around the world. France cut its estimate for this year’s wine output to below 2024’s historically low level, after heat waves and wildfires hit vineyards.

Genevard also has requested that European Commissioner for Agriculture and Food Christophe Hansen mobilize crisis reserves to finance the distillation of unsellable surplus stocks, which can be used for perfume, sanitizing gels and ethanol.

French red wine consumption has suffered as geopolitical tensions curbed exports to its biggest markets in the US and China, Genevard said. The country has about 11% of the world’s vineyards.