Police Teargas Burgundian Winemakers

[Rebel Rose]

Police used teargas last week on rampaging Burgundian winemakers demonstrating against government-imposed cuts on wine yields.

Although the reduction is inevitable if France is to reduce its surplus stocks, and although it represents only around 5% the normal levels for the Macon region, it is hitting winemakers hard . . .The government denonounced the violent protests as 'irresponsible'.

What do you think?

[Andre]

I wondr if in France anyone has anything resembling a plan - it sure does not look it.

The world is in need of simple, fairly priced well made wines of distinctive regional character and with a logical percentage of alcohol not exceeding 12.5% for an everyday enjoyment and to fix the snobbish attitude the wine world brought upon itself.

There is little wine countries like Australia can help with and whomever supports the blind wine critics.

France is a good option should the farmers be guided to fill this gap and by no means should it be thriugh lower yields driving them to concentrated alcoholic so called table wines.

[JohnL]

This is a complex issue.

It involves the emergence of a global wine market and the emergence of wine producers to meet the global demand.

It also involves the EU, French farm subsidies and the fact that France must compete on a much larger (and growing) stage.

There is a serious glut of wine produced in France.

There is also a sea of mediocre (at best) wine--contributing to the glut.

France (like the rest of the world) is trying to reconcile their complex system of wine regulations in the face of all this change. interestingly most, if not all countries that produce wine have their own means of classification and quality asssurance laws and regulations.

It is a much agreed upon fact (yes there is some minor debate) that high yields most often result in poorer quality wines (more dilute less interesting). The French government has long had control over allowable yields as a means of ensuring quality wines.

High yields also result in more wine (good or bad)--which is what France does not need.

This has nothing to do with alcohol levels nor over concentration nor critics supposed influences (each of these can be debated separately).

The fact is France is trying to compete--at home--within the EU and in the world as a whole. The country produces an ocean of wine as it is--they simply can not sell all this wine at reasonable profit. The USA has also been dealing with a wine glut.

I am sure there are some folks out there who are more knowledgeable (maybe someone from the French or European boards) who could provide some perspective!

Edited September 14, 2005 by JohnL (log)

[Rebel Rose]

Does anyone have any more information or a link as to what exactly the current restrictions are?

I can't imagine that this kind of passion and anger is born out of greed. This seems to me to be the kind of reaction that small farmers would have against having their livelihood threatened. (Then again, the French have been known to bulldoze McDonald's on principle.)

For the Macon region, the reduction is around 3 hl/ha (hectolitres per hectare) for red wines and 2 hl/ha for whites.

Beaujolais and Beaujolais Villages yields are also to be cut – in this case by 5 hl/ha .

Five percent across the board could seriously impact a small, already tightly producing vineyard, while hardly affecting the bottom line of larger growers. By my calculations, the figures listed in the article equate to about 1 ton per acre for Cahors. That can be significant for growers with already limited tons/acre or hl/ha.

[JohnL]

mary,

as I suspected this issue is complex and fascinating!

Simply put--French wine industry has represented a large portion of their economy.

French farmers are heavily subsidized--that industry has been protected and regulated.

In recent years this reliance on the wine industry has left France vulnerable to the increased competition from the rest of the wine producing world which is growing at a rapid rate.

In fact, the US , in GATT talks, announced that we would place 200% tariffs on $300 million worth of white Burgundy imports, in part, because the French had been slowest in the EU to remove/reduce subsidies protecting their grape growers.

Obviously France is having a difficult time wrestling with their wine industry internally and coming into compliance with the EU as well as competing in the world arena.

There is a fascinating review of the French wine industry covering this topic at:

www.american.edu/TED/vinewine.htm

Site is run by a professor at American University in Wash DC.

Sorry--I have been having trouble adding the link here.

hope this helps!

[Busboy]

I'd be curious to know if this cut affectes Grand Cru and Premier Cru wines which, I believe, already face yield restrictions. Just what I need -- even less Chambertin being chased by a growing wine market.

Food producers everywherereact poorly to cuts, even though it is often in their best interest. New England fishermen would overfish themselves out of existence rather than accept government restrictions, if they had a choice. Farmers don't like to cut production unless bribed by the federal government to do so.

The French growers reaction, though (to me) wrong-headed, is perfectly understandable, particularly in light of the French delight in demonstrations of all kinds and, quite possibly, a little fortification by their own product.

Another question: anyone know if French wine subsidies are based on acreage, or on production? And do they get a flat subsidy, or a guaranteed minimum price per liter?

[JohnL]

Here are some startling facts:

world wine production in 2004: 2.87 Billion Litres

world wine consumption in 2004: 2.3 Billion Litres.

The EU paid France $250 Million to distill 150 million litres of wine into industrial alcohol. (the EU paid Spain the same amount to distill 400 million litres)

France (and the world) is producing way too much wine given the total consumption.

France unemployment is at around 10% much of their workforce is in the wine industry.

The only region in France that is not in crisis is Champagne--the worlwide demand for this "brand" is still high vs production.

EU farm commissioner Marrianne Ficsher Boel says she wants to raise the quality of European wine and force growers to move beyond cheap table wines which have suffered worst at the hands of New World competition.

Ms Boel also hinted that with the new rules for digging out low quality vines, the days of subsidies could be limited. she recieved howls of dismay 9from the french) who voted non to a EU constitution.

already the number of growers in France has fallen dramitically, from around 196,600 in 1994 to around 112,500 in 2003 as thousands opted to take subsidies to pull vines, retire, or abondon the industry.

New EU plantings are prohibited until 2010. Meanwhile the EU will spend $158 million on marketing agricultural products of which half will go to wine in Spain, Portugal, France and Germany.

No wonder the Farmers are upset!

Edited September 14, 2005 by JohnL (log)

[JohnL]

Police used teargas last week on rampaging Burgundian winemakers demonstrating against government-imposed cuts on wine yields.

Although the reduction is inevitable if France is to reduce its surplus stocks, and although it represents only around 5% the normal levels for the Macon region, it is hitting winemakers hard . . .The government denonounced the violent protests as 'irresponsible'.

What do you think?

←

QWine woes for France and the EU

Hope this link works!

Anyway--this is really fascinating.

Really gets to the bottom of things!

A very interesting perspective.

also

I must say I was quite stunned to learn of these facts and the current wine situation in the world.

Edited September 14, 2005 by JohnL (log)

[Chris Amirault]

Here are some startling facts:

world wine production in 2004: 2.87 Billion Litres

world wine consumption in 2004: 2.3 Billion Litres.

...[snip]...

France (and the world) is producing way too much wine given the total consumption.

←

This is astonishing to me. Coming from a country where farm subsidies are the norm, I can imagine some answers to this question, but why such astonishing overproduction worldwide? Has this production/consumption gap been this wide for a while, or is it recent?

edited to add: Should've clicked on the article link to get more information -- thanks, JohnL. But I'm still wondering if anyone has information about the history and extent of this gap.

Edited September 14, 2005 by chrisamirault (log)

[Busboy]

Wine consumption shot up in the U.S. (and perhaps other places) for a long time and a lot of acres of vines were planted in a lot of places like Chile, Argentina, Australia and South Africa. Now the vines are mature, but while production continued to rise, consumption leveled off, leading to excess capacity worldwide. I've been hearing about grape gluts in California for years, for example, hence "Two Buck Chuck."

The French industry faces special challenges, as well, according to this article.

[JohnL]

Here are some startling facts:

world wine production in 2004: 2.87 Billion Litres

world wine consumption in 2004: 2.3 Billion Litres.

...[snip]...

France (and the world) is producing way too much wine given the total consumption.

←

This is astonishing to me. Coming from a country where farm subsidies are the norm, I can imagine some answers to this question, but why such astonishing overproduction worldwide? Has this production/consumption gap been this wide for a while, or is it recent?

edited to add: Should've clicked on the article link to get more information -- thanks, JohnL. But I'm still wondering if anyone has information about the history and extent of this gap.

←

I'm sure some industry professionals can provide better insight.

My guess is there has been an expansion and contraction in the consumer base.

Also note that the article indicates Australian wine industry is healthy and growing.

(the piece is a tad biased as it is really an aussi viewpoint--though the facts presented are facts nonetheless).

It may be that after an initial growth explosion--people may be drinking less but drinking better.

(this happened in the beer and liquor industries) and also awareness of alcohol related problems etc may be factors.

It is clear that the french have beenb caught short-due to their marketing strategies and reliance on reputation and a failure to compete with the new world.

as the piece notes--it is the low end of the price quality spectrum that seems to be the problem with over production. thus the EU attempt to raise the overall quality and cut capacity via the "plonk" end of things.

[Rebel Rose]