Southern France Winemakers Lose Up to 60% of Crops as Climate Trading Becomes Lifeline

In the wine regions of southern France, a growing number of winemakers are turning to a practice known as “climate trading” to cope with the effects of extreme weather. This system, regulated since 2017, allows producers who have lost a significant portion of their harvest due to adverse climate events to buy grapes or must from other growers, even if they do not have official merchant status. The measure is intended as an emergency response, but it is becoming increasingly common as climate change brings more frequent and severe challenges to vineyards.

The rule was established by a decree on August 4, 2017. It states that when a climate event causes significant crop loss, the local prefect can authorize affected growers to purchase grapes or must. The amount purchased cannot exceed 80 percent of the average production over the previous five years. Losses caused by fire or mildew are excluded from this provision.

Catherine Richer, a regional delegate for the National Institute of Origin and Quality (INAO), says that in Occitanie, it is now more common to have years with these exemptions than without. In 2025 alone, the system was used four times in this region. She explains that while the measure is usually limited to a few towns, it can be extended to an entire department in cases of natural disaster, as happened in Aude this year.

Jean-Marie Fabre, president of the independent winemakers’ association and a producer in Fitou, has used the system himself after losing much of his crop to drought. He describes how unpredictable losses have become: “Every year, we lose between 15 and 25 percent on average. But that doesn’t show the real picture. Some producers lose nothing while their neighbors lose everything.” In his case, he lost 35 percent of his production in 2023 and 60 percent in 2025. He worries about running out of wine to sell and losing customers permanently.

The climate trading system was introduced after severe hailstorms in 2014 and 2016 made it clear that climate change was no longer just a future concern. The process involves crisis teams from government agencies and industry groups working together to respond quickly when needed.

While the system helps maintain production volumes in the short term, it does not fully compensate for lost harvests—especially if losses happen repeatedly. Fabre points out that buying grapes at short notice requires cash and contacts. Some winemakers also find it harder to sell wines made from purchased grapes because they differ from their usual style. One producer from southwest France said she tried it once but would not do it again for this reason.

Despite these challenges, demand for the system is high whenever there is a climate event. However, Richer notes that actual use often falls short of initial requests, especially if producers still have unsold stock from previous years.

What began as an exceptional measure is now becoming part of long-term strategy for some businesses. Informal grape marketplaces are emerging in several regions. Both Richer and Fabre have observed that more companies are adopting this approach regularly, though exact figures are hard to determine.

The trend has sparked debate within the industry about whether climate trading is a necessary adaptation or creates unfair competition for traditional producers. Muriel Zoldan, co-organizer of the Contrastes wine fair in Toulouse, says her team debated whether to allow wines made under this system at their event. They ultimately decided to permit them if they were produced under official climate trading rules but not for regular merchant wines.

Fabre argues that emergency measures like climate trading or financial aid after losses are no longer enough. He calls for more support to help growers protect their crops with tools such as hail nets, frost protection systems and irrigation. “Even if we can’t protect everything,” he says, “losing 10 percent is not the same as losing 40 percent.”

As extreme weather becomes more frequent across France’s vineyards, many winemakers are finding themselves forced into new roles as both producers and merchants—an adaptation driven less by choice than by necessity.