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France will increase the budget for the distillation of 3 million hl of surplus wine by 40 million to 200 million euros. This was announced by Agriculture Minister Marc Fesnau. Nevertheless, the amount will only be enough to process two thirds of the 4.4 million hl notified for distillation.
The crisis fund of the European Union was mobilised for the increased subsidy. Already in June, the ministry had announced a subsidy of 57 million euros for the grubbing up of about 9,500 ha of vines in Bordeaux. Further public funds are to help winegrowers to switch to other products such as olives. Fesnau also announced that state-guaranteed loans would be converted into subsidised loans.
The alcohol distilled from the surplus wine is used to make cleaning products, disinfectants and perfume. In total, the Ministry of Agriculture as well as the EU are spending about 260 million euros this year in France alone to eliminate wine surpluses.
(al / source: vitisphere)