French Cognac Producers Seek Aid as China Trade Dispute Forces Vineyard Uprooting

The French cognac industry is asking the European Union and the French government for financial support to uproot thousands of hectares of vineyards. This request comes after China imposed major restrictions last year on imports of European brandy, mainly cognac. The move by Beijing is widely seen as a response to the European Union’s anti-dumping investigation into Chinese electric vehicles.

In July, leading cognac exporters such as Hennessy, Rémy Cointreau, and Martell agreed to raise their prices in an effort to avoid higher tariffs in China. Despite these efforts, cognac shipments have dropped by 10 percent over the past year. The industry’s trade body, the Bureau National Interprofessionnel du Cognac (BNIC), is now considering a temporary reduction in vineyard area by 7,000 to 10,000 hectares out of the region’s total 90,000 hectares. More significantly, it is proposing a permanent uprooting of 3,500 hectares.

Florent Morillon, president of the BNIC, said the industry considers itself a victim of the ongoing trade dispute between China and the EU. He explained that the sector is seeking compensation for damages suffered as a result of these trade tensions. “We have suffered the consequences of these decisions. We would like some help because we are collateral damage,” Morillon told Agence France-Presse.

According to Morillon, any compensation must reflect the high value of vineyards in the region. He stated that the minimum acceptable amount would be 10,000 euros per hectare, but ideally between 10,000 and 15,000 euros per hectare. For 3,500 hectares, this would mean a total compensation package of between 35 and 50 million euros. Morillon pointed out that this sum represents only about half a month’s worth of pre-restriction sales in China for the cognac sector.

The proposed permanent uprooting would mainly affect winegrowers nearing retirement or those facing financial difficulties. In addition to the impact from Chinese trade measures, the cognac industry has also been hit by U.S. tariffs imposed during the Trump administration and by a general decline in wine and spirits consumption worldwide.

Cognac producers rely heavily on exports for their business. In 2024, exports reached around 3 billion euros, with nearly all sales going abroad. The United States accounted for 36 percent of these exports and China for 20 percent, according to French customs data.

Industry leaders argue that without support from Paris and Brussels, many growers will struggle to survive as they face shrinking markets and rising costs. The request for an uprooting plan is now under review by French and European authorities as cognac producers wait for a response to their call for aid.