One in Five French Winegrowers Face Closure as Industry Crisis Threatens 100,000 Jobs

French winemakers are facing one of the most difficult periods in recent history, as industry leaders and vineyard owners warn that a series of crises has pushed many producers to the brink of collapse. On Monday, France’s agriculture minister is scheduled to meet with representatives from the wine sector to discuss urgent measures that could help save thousands of businesses and jobs.

The meeting comes after several thousand winegrowers gathered in Béziers, a city in southern France, last weekend to demand government intervention. The protest was sparked by a combination of poor harvests, rising production costs, and declining sales both domestically and internationally. Many growers say they are struggling to survive after five years marked by unprecedented challenges.

Jean-Marie Fabre, president of the independent winemakers’ syndicate, said that up to 20 percent of French winegrowers are at risk of going out of business if immediate action is not taken. “They are putting their final efforts into this battle for survival,” Fabre said. “The situation is dramatic and the government has to do something.” He compared the importance of the wine industry in France to that of the car industry in Germany, emphasizing that abandoning it would be unthinkable.

The French wine sector is a cornerstone of the national economy, with an annual turnover estimated at €92 billion. It directly or indirectly employs more than 440,000 people, making it one of France’s three main industrial sectors alongside aeronautics and luxury goods. According to FranceAgriMer, a national body overseeing food and drink production, about 20 percent of French winegrowers are considering shutting down their businesses, which could result in the loss of up to 100,000 jobs.

Recent years have brought a series of setbacks for winemakers. In 2019, tariffs imposed by the United States under then-President Donald Trump raised costs for French wine exports. The COVID-19 pandemic further disrupted sales and distribution channels. Extreme weather events—including heatwaves and hail—have devastated harvests, with some regions experiencing their worst yields in 70 years. The war in Ukraine has driven up energy and supply costs by about a third. Meanwhile, demand for French wine has slumped both at home and abroad.

Bordeaux’s grand cru exports to China have fallen sharply over the past decade. A report from the Bordeaux wine council earlier this year showed that exports to China have halved since 2017. In July, China imposed a 32.2 percent customs tax on many imports of wine-based spirits from the European Union, exempting only three major French companies: LVMH, Pernod Ricard, and Rémy Cointreau.

Damien Onorre, president of the Aude winegrowers’ union in southern France, said his region has been hit especially hard by droughts and heatwaves over the past three years. “I have lost 50 percent of my production over this period,” Onorre said. The Aude region’s total wine output has nearly halved during that time.

To address these challenges, winemakers are asking for compensation for uprooting vines—a measure already underway in some regions. Under a plan introduced last year, 27,000 hectares have been uprooted with compensation set at €4,000 per hectare. Fabre says another 35,000 hectares may need to be removed if conditions do not improve. In Bordeaux alone, 12,000 hectares have already been destroyed under similar schemes.

Winemakers are also seeking funds to distill unsold wine into biofuel as a way to manage excess supply. They hope to access support from the European crisis reserve fund—a resource Portugal used last year for its own distillation program—but so far their requests have gone unanswered.

Monday’s crisis meeting at the agriculture ministry takes place just before an international exhibition on wine production equipment opens in Montpellier on Tuesday. Industry leaders hope that concrete measures will be announced soon to prevent further closures and job losses.

Fabre himself is a fourth-generation winemaker from Fitou near France’s border with Spain. He produces about 80,000 bottles annually at his Domaine de la Rochelierre and represents 17,000 members as head of the independent winemakers’ association. “This is the last chance,” he said ahead of Monday’s talks. “People are in a fighting mood but getting to the end of their tether. They either get support or they will have to shut.”

He added that while French winemakers continue to produce high-quality wines, their financial reserves have been depleted by years of crisis beyond their control. Without immediate assistance from the government or European authorities, many fear they will not survive another difficult season.