The French government has allocated 200 million Euros to destroy surplus wine in an attempt to support struggling producers, BBC reported. Please watch the video to know the reason.
#France #Wine #ViralNews
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#France #Wine #ViralNews
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00:00 France is about to destroy enough wine to fill more than 100 Olympic-sized swimming
00:06 pools, and it is going to cost the nation about $216 million.
00:12 The French government has allocated 200 million euros to destroy surplus wine in an attempt
00:18 to support struggling producers, BBC reported.
00:22 Ruining so much wine may sound ludicrous, but there's a straightforward economic reason
00:27 this is happening.
00:29 Drinking wine is getting more expensive due in part to recent world events and people
00:34 are drinking less of it.
00:36 That has left some producers with a surplus that they cannot price high enough to make
00:40 a profit.
00:41 The decision comes at a time when the wine industry is facing several challenges, including
00:46 a decrease in wine demand due to the growing popularity of craft beer.
00:50 Further, factors like the cost of living crisis, after-effects of COVID-19 and overproduction
00:57 have also added to the problem.
00:59 Now some of France's most famous wine-producing regions like Vaudocs are struggling.
01:05 "We are producing too much, and the sale price is below the production price.
01:10 So we are losing money," said the Languedoc Wine Producers Association.
01:15 As per AFP, recent rises in the prices of food and fuel, linked to rocketing global
01:20 energy prices and the Russian invasion of Ukraine have also seen buyers reduce their
01:24 spending on non-essential goods such as wine.
01:28 Most of the allocated money will be used to buy excess stock, and the alcohol from destroyed
01:32 wine can be sold to companies for use in items like cleansing products, hand sanitizers,
01:37 perfumes and so on.
01:39 The funding will also be available for winegrowers to transition to alternative products such
01:44 as cultivating olives.
01:46 In June, the European Union initially gave France about $172 million to destroy nearly
01:51 80 million gallons of wine, and the French government announced additional funds this
01:56 week.
01:57 Winemakers will use the funds to distill their wine into pure alcohol to be used for
02:01 other products such as cleaning supplies or perfumes.
02:05 The money was aimed at stopping prices collapsing and so that winemakers can find sources of
02:10 revenue again.
02:11 However, Agriculture Minister Marc Fesneau stressed that the industry needed to look
02:15 to the future, think about consumer changes, and adapt.
02:20 Statistics from the European Commission this year till June revealed that wine consumption
02:24 has fallen 7% in Italy, 10% in Spain, 15% in France, 22% in Germany, and 34% in Portugal.
02:33 And regardless of its current woes, wine is too strong a part of France's identity for
02:38 the market to go anywhere.
02:40 It is certainly in the government's best interest to keep the industry happy.
02:45 French President Emmanuel Macron has even said that a meal without wine is a bit sad.
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