French Wine Industry Gets €70 Million Support
|
 |
|
| I am afraid the resources are not up to the ambitions | |
|
Jean-Michel Lemetayer, FNSEA |
|
 |
|
The financial package is aimed at assisting vintners in financial trouble and improving how its wine is marketed. The French wine industry, one of the world's largest, has been hit by declining consumption at home and the growing popularity of New World wines worldwide.
The package was announced by agriculture minister, Dominique Bussereau, after talks with vintners' representatives, however, wine makers claimed the support did not go far enough.
About €40 million will be offered in the form of preferential loans to heavily indebted producers, to enable them to reschedule their payments. A further € 15 million will be made available to wine cooperatives, which make up the majority of French producers, in low interest loans.
Efforts to promote French wine abroad are to be boosted by an extra €3.5 million in funding.
Positive Climate
Domestic consumption, accounting for 70 percent of sales, has suffered from strong restrictions on advertising and tough drunk-driving laws. The aid package would "create a positive climate around French viticulture," Mr Bussereau said.
Wine makers and vintners, however, said the support was much less than they had been hoping for.
"I am afraid the resources are not up to the ambitions," Jean-Michel Lemetayer, from the FNSEA agricultural union, told the Associated Press news agency.
In an effort to tackle overcapacity, the government will agree that vines can be destroyed in areas where growers give their unanimous consent, while 500 vintners will be helped to take early retirement. Grape production is currently outstripping demand by about 30 percent.
The government will also seek European Union approval to distill about 250 million liters of excess wine into alcohol, with vintners receiving compensation.
The support is designed to make French producers more competitive in the face of increasing global consolidation across the wine industry.
Wine makers in France's best-known regions, such as Burgundy, have found it hard to invest in new technology and to create recognizable brands to appeal to overseas buyers.
| Source: Associated Press |
Related articles:
- Coldiretti: Italy is Leader Once Again in the U S - February 2, 2005
- Italian/French Wine Exports to U S Hammered - December 10, 2004
- Italian Sparkling Wine Grows More than Champagne in the U S - September 3, 2004
- Wine Surplus Gives France Headaches - August 19, 2004
- France Expected to be the Grape Harvest World Leader in 2004 - July 26, 2004
|
Home • General Index • Contact Us • Search • News • About Us • Site Map |
