‘Wine country’ France has decided to dump enough wine to fill more than 100 Olympic-size swimming pools. This is because production costs are rising day by day while consumption is declining.
The Washington Post ( WP ) reported on the 26th (local time) that France plans to dispose of about 66 million gallons of wine at a cost of $ 216 million (about 287 billion won).
Wine production costs are skyrocketing, but consumption is on a downward trend, making it difficult for farmers in renowned wine regions like Bordeaux to make a profit. In the end, in order to somehow maintain the price, they came up with a desperate plan to dispose of the fine wine.
The European Union ( EU ) paid France $172 million (about 228 billion won) for wine disposal costs in June, and the French government recently announced additional funding.
However, instead of dumping the wine on the road, wine producers will distill the wine into pure alcohol with government subsidies and use it to make other products such as cleaning products and perfume.
According to AFP , Agriculture Minister Marc Pesno told reporters on the 25th that the funding “is intended to prevent a price collapse so that winemakers can find a source of income again.”
French wine consumption has been steadily declining. The amount of wine consumed by the French peaked at 136 liters per year in 1926, and has since declined to near 40 liters today. In addition to wine, a variety of beverages are on the market.
The situation has worsened in recent years as inflation has driven up production costs and consumers have cut back on spending. Bars, restaurants, and wineries were closed due to the COVID-19 pandemic, boosting prices, and the war in Ukraine made it difficult to supply and demand supplies for production of fertilizers and wine bottles, which also affected the wine industry.
To make matters worse, climate change is forcing wineries to adjust their growing and harvesting schedules.
Elizabeth Carter, a professor of political science at the University of New Hampshire who studies the French wine market, said: “It’s not surprising that the French are seeking price support from surplus disposal and volume restrictions, because they have been 토토사이트experiencing wine overproduction since the 19th century.” .
There are also voices that the wine industry must find a long-term solution according to external environmental changes, from reduced consumption to climate change. “We need to think in terms of long-term adaptation to this changing environment,” said Olivier Zergot, professor of economics at KEDGE Business
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As President Emmanuel Macron once said, “A meal without wine is a bit sad.”WP pointed out.