France's winegrowers are facing declining sales at home and abroad compounded by falling producer prices, despite achieving an above-average grape harvest last year.
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The situation has been caused by rising inflation and the fact that the French are drinking less wine, the Agriculture Ministry said in its latest market analysis.
France's 2023 grape harvest should actually have given winegrowers reason to celebrate. At 48 million hectolitres, it was four per cent higher than the previous year and eight per cent higher than the average for 2018-2022.
But between August and December 2023, exports of origin-protected (AOP) wines fell by seven per cent in volume and five per cent in commercial value. Exports of other wines even fell by 16 per cent and 11 per cent respectively. The volume of cognac exported fell by 18 per cent and that of champagne by 17 per cent.
According to the ministry's data, the producer prices of French winegrowers fell by 13 per cent between August and December 2023 compared to the same period in the previous year and by nine per cent compared to the previous five years. Only producer prices for champagne increased by 10 per cent.
Inflation both contributed to the decline in exports and also had a negative impact on domestic wine sales, the ministry said.
Retail wine sales in France fell by four per cent in 2023 after an equally large decline in 2022. Red wines, with a drop of nine per cent, were hit harder than white wine which saw a four per cent fall and rose which was down two per cent.
Australian Associated Press
