More than half of Bordeaux winemakers ‘earning less than minimum wage’

by Valeria Tenison

According to the recent report into agriculture across New Aquitaine, published on 15 December 2022 by the Regional Chamber of Agriculture, 70% of farmers gained an income below the minimum wage (SMIC, equal to around €1,700 per month*) in 2021.

The report unites all the farmers of the Gironde department, not only winegrowers, but according to the Chamber, they represent around 80% of agricultural units. To make things even worse, the report shows that 34% of the farmers had a negative income in 2021, an 11% increase compared to 2018.

It is this commercial crisis of Bordeaux wines, aggravated by the global economic and political unease, that is forcing growers to act assertively. In December, numerous growers went onto the streets of Bordeaux to protest, calling for an extensive recovery plan embracing possible uprooting and conversion schemes. After the demonstration, the Chamber of Commerce, with the support of the public authorities, launched a major survey for winegrowers in economic difficulty.

The aim is to identify, before January 15 2023, the winegrowers who would like to “stop their activity completely, and those wishing to reduce the area under vine, or looking for a diversification project or agricultural reconversion”. Retired winemakers, and those who were previously renting vines, are also requested to fill in the survey, with the results due to be presented to the departmental crisis unit, which brings together state, regional, and departmental authorities and representatives of professional organisations. The results of the survey will then be used to assess how each different category is being impacted, to therefore ensure solutions are as targeted as possible.

At the same time, a Médoc winegrower, Rémi Lacombe, brought a legal case against two heavyweight négociants, Ginestet and Cordier, for buying his wine of 2019 and 2020 vintages at an ‘abusively low price’. This liability action – the first time that such a case has been brought – is based on the Egalim law adopted by the French government in 2019 to fight against abuses by large agri-food companies, and ensure a fair income for farmers.

Under this law, buying an agricultural product below a price fixed at 10% above the cost is forbidden- and as such Lacombe, who owns 130ha of vines, notably Château Bessan-Ségur, has said he is performing a ‘public service’ by ensuring the profits of the wine industry are fairly shared. Through his lawyer Louis Lacamp, the winemaker is seeking over €1.1 million in damages, setting the ‘correct’ price at 10% above the payment he received. The case is being heard by the Tribunal de Commerce de Bordeaux, but is expected to be challenged at a national level.

Attempting to manage all of these tensions, the CIVB (Conseil Interprofessionnel du Vin de Bordeaux) supports the growers and admits that “the imbalance between supply and demand, the many international trade tensions (Covid, Trump taxes, repeated confinements in China, war in Ukraine, inflation) and the decline in consumption in France have seriously weakened many farms.”

The representative of the organisation that we contacted added, ”despite these difficulties, collectively as well as individually, the players in the sector continue to move forward, innovate and adapt thanks to their convictions, their passion and their work.”

They pointed out that the Bordeaux wine industry contributes more than €1.2 billion to French export figures, and VAT alone contributes several million euros yearly to the government from sales within France – clear reasons why they hope national as well as regional bodies will step in to find solutions. Recent figures from French supermarkets show that sales of Bordeaux white wines have risen by 3% from 2019-2022, but rosés fallen 6% and red wines fallen 15%, bringing the overall sales down by 9% in this main domestic sales channel. In response, the CIVB is calling for support and engagement from winemakers and regional bodies during the annual consumer-facing Tournée des Vins de Bordeaux which takes place March 9-11, 2023 in various locations around France.

*In France SMIC (salaire minimum interprofessionnel de croissance) is subject to an annual re-evaluation by the government, and on 1 January 2023, it rose to €1,709.28 gross per month, or €1,353 net for a 35 hour a week, an increase of 1.81% compared to the previous year.

Main image Didier Weemaels.