€130 Million Allocated for French Vineyard Removal Amid Plummeting Wine Demand and Trade Tensions

French winegrowers are facing a difficult period as the country’s wine sector continues to struggle with falling demand, climate challenges, and international trade tensions. Annie Genevard, France’s Minister of Agriculture, has addressed these issues in recent statements and interviews, defending the government’s efforts while acknowledging the frustration and impatience among wine producers.

Genevard has visited key wine regions such as Occitanie, Bordeaux, and the Rhône Valley in recent months. She says she has witnessed firsthand the discouragement among young winemakers who are dealing with repeated climate disasters and a sluggish market. The government announced a crisis support plan at the Sitevi agricultural fair, but many in the industry feel it falls short of their needs.

The French wine sector requested €200 million in exceptional support during a meeting on November 6. The government’s plan includes funding for vineyard removal (arrachage), use of the national crisis reserve, social charge reductions, and budgetary spending to guarantee consolidation loans. Genevard claims these measures add up to the amount requested by professionals. However, she admits that the lack of an approved national budget will delay implementation and postpone the support that winegrowers are waiting for.

A key part of the plan is €130 million in national funds dedicated to permanent vineyard removal at a rate of €4,000 per hectare. This measure aims to help adapt French vineyards to declining domestic wine consumption—especially red wine—and export difficulties caused by global trade tensions. Genevard insists there is no ambiguity about this commitment and that it will be honored.

Agricultural unions have demanded that vineyard removal begin before the opening of the Paris International Agricultural Show on February 21, 2026. Genevard says she shares their desire for a quick start but notes that regulatory approval from Brussels is required first. The European Union must adopt new rules (the so-called “wine package”) before France can proceed, and a national budget must be in place.

Another pressing issue is distillation aid for surplus wine stocks. The industry has asked for €80 million from the EU’s crisis reserve to fund emergency distillation. In 2023, France received €40 million for this purpose. Genevard says discussions with the European Commission are ongoing and hopes for a favorable response soon.

The Cognac sector is also seeking special support after China imposed restrictions on imports in retaliation for EU tariffs on electric vehicles. Cognac producers want compensation for uprooting 3,500 hectares of vines. Genevard says the government has worked hard at the highest diplomatic levels to address China’s actions and that any reduction in production capacity must be discussed with all stakeholders to ensure fairness across regions.

In early January, new restructuring loans for both independent wineries and cooperatives are expected to be available. These loans are designed to help producers manage their debts during this crisis period. The government needs legislative approval to extend these guarantees into 2026 and is working with banks and industry representatives to adjust eligibility criteria.

Winegrowers are also demanding fairer compensation for their work through regulatory changes such as updates to France’s Egalim law or by allowing new Producer Organizations (OPs) by decree. Genevard says these requests are being considered as part of broader policy discussions but notes that consensus within the industry is necessary before moving forward.

The French wine sector remains under pressure from multiple directions: economic uncertainty, climate change impacts, shifting consumer habits, and international trade disputes. While government officials say they are committed to supporting winemakers through targeted aid and policy changes, much depends on decisions yet to be made in Paris and Brussels. For now, many producers remain anxious about their future as they wait for concrete action and financial relief.