Grubbing up excess Bordeaux: the story so far

by Gemma Hadley

After months of mounting pressure and protests, last week marked the start of the Conseil Interprofessionnel du Vin de Bordeaux’s (CIVB) ‘ grubbing up ’ objective.

With approximately half a million hectolitres of excess wine produced every year, the European Commission has approved a scheme which aims to remove 9,500ha of vines – close to 9% of the total vines of the region. Totalling €57 million, the much-anticipated finance package subsidises growers at a rate of €6,000 per hectare of uprooted vineyard land.

On the 20th of November, the Service Agriculture Forêt et Développement Rural (SAFDR) launched its online application window for growers to request financial assistance for the ‘dispositif darrachage sanitaire des vignes en Gironde’ (grubbing up of vines in the Gironde). Producers have until the 20th of December to submit their case before it is processed by the Direction Départementale des Territoires et de la Mer (DDTM).

However, despite the offer of €6,000 per hectare, recent reports suggest that vignerons are pulling up their vines irrespective of state support.

‘This is the choice that some winemakers make to retain their rights of planting vines and to reduce their outgoings without waiting for an Authorization to Commence Works permit (ACT). This is the case in the Médoc for example’ accepts the CIVB.

Running out of options
‘Prices have not stopped falling’ observes Olivier Metzinger of Château Pascaud in Entre-deux- Mers. In 2018 a 900-litre barrel fetched between €1,200 and €1,300. Today, it is worth a meagre €600 to €700.’

Having sold thousands of hectolitres to be distilled into industrial alcohol for the last two years, Metzinger, like many other winemakers, is looking for a longer-term solution. The CIVB’s answer to the crisis is to uproot 10% of the region’s vines to ease oversupply, but how realistic is this, and does the scheme work?

Mixed messages
The language used in the CIVB’s press release and the SAFDR’s online application platform contradicts the sentiments expressed by struggling producers and the CIVB’s president, Allan Sichel.

In December 2022, Sichel spoke of, ‘facing annual overproduction of 300,000hl, to which must be added 200,000hl sold at unremunerative prices’.

Yet the official press statement released on 19th November 2023 contains no mention of surplus production or dwindling demand. It states, ‘The objective is to support winegrowers who wish to stop all or part of their wine-growing activity along two possible alternatives: renaturing the uprooted plots or diversifying their production.’

Similarly, the SAFDR’s dedicated web page and 151-page application form do not refer to overproduction or financial pressures, instead attributing blame to the disease flavescence dorée.

Claiming that ‘Despite the mandatory control measures established by European and French regulations, the measures implemented so far have not made it possible to eradicate the disease in Gironde. This leads the sector to fight the disease by implementing a de-densification program with compensation for the voluntary uprooting of vines.’

Widespread economic difficulties
Given the enormity of the situation and the financial strain placed on landowners, certain details of the scheme lack cohesion. Earlier this year, a third of winemakers admitted to facing economic difficulties in a survey conducted by the Gironde’s Chamber of Agriculture. However, the current programme requires owner-operators to provide an ‘accountant’s certificate attesting that the company is not in financial difficulty’ to qualify for aid, specifies the SAFDR.

In response, the CIVB admitted that, ‘This question is being discussed with the French administration, and with regard to what is imposed by the European Union, because it is a question of precisely defining the notion of companies in difficulty’.

With estates suffering heavy losses, estate owners such as Sébastien Léglise, head of Falgueyret Léglise vineyards, told online French news site, Vitisphere, that he was ‘on the verge of filing for bankruptcy’. Even if landowners are successful in applying for subsidisation, they must wait until after the vines have been removed to submit a payment request.

Rewilding the vineyards
The CIVB encourages vineyard owners to support crop diversification or to renature the land. Renaud Jean, the owner of two estates, Château de Marjolaine and Château Lamothe Castéra, has just submitted his application to grub up 20 of his 40 hectares. His idea is to reforest 8 hectares and diversify the remaining 12 with, ‘alfalfa or perhaps into hay because people have more and more horses’.

When questioned by Le Monde newspaper, Jean adds, ‘The equipment is getting old, and we no longer have the means to replace it. Staff are retiring, and we can no longer hire’.

He estimates that it will cost approximately €30,000 to dig up his 20 hectares. With a large majority of Bordeaux affected to some degree by mildew this year, Jean has spent an additional €35,000 to protect his remaining vineyards as well as 500 hectolitres of grapes to compensate for reduced yields. While the grubbing-up premium of €6,000/ha helps to ‘plug the cash flow holes’, it is far from a sustainable solution.

‘‘This system is obviously not perfect, but it aims to meet certain expectations’, acknowledges the CIVB.