The Persistent Imbalance: Supply Outstrips Demand

Despite a significant 15% reduction in vineyard surface area, Bordeaux continues to struggle with a wine surplus. This imbalance has reignited discussions about implementing a third uprooting plan since 2023. However, the financial burden of such initiatives is raising concerns, with the Bordeaux wine industry body, the CIVB, expressing its inability to shoulder further costs.

The prefect of Gironde, Étienne Guyot, addressed the General Assembly of the Interprofessional Council of Bordeaux Wine (CIVB) via video message, highlighting the reduction of Bordeaux’s wine potential. Between 2023 and 2025, approximately 18,000 hectares of vines have been uprooted, representing a 15% decrease in surface area. This follows two aid plans, one regional and one national, offering €4,000 per hectare, as well as voluntary uprooting measures that allowed growers to retain planting authorizations.Despite these efforts, the prefect indicated that the desired balance has not yet been achieved.

Calls for Further Action: A New Census of Vineyards

Following a departmental crisis cell meeting on April 16th, stakeholders concluded that supply and demand remained misaligned.Prefect Guyot has requested a detailed assessment of the additional surface area that needs to be uprooted to restore equilibrium. Jean-Samuel Eynard, President of the Gironde Chamber of Agriculture, announced that his services would conduct a census to identify vineyards that growers are willing to uproot. He emphasized the deteriorating situation, stating that some winegrowers see uprooting as their only remaining option.

Participants estimated that supply and demand were not yet balanced.Therefore, I asked that the additional surfaces can be objectified that it would be necessary to tear down to bring information back to the government.

Étienne Guyot, Prefect of Gironde

The situation in Bordeaux reflects broader trends in the wine industry. According to a recent report by the International Organisation of Vine and Wine (OIV), global wine consumption has been declining in recent years, while production remains relatively stable. This has led to increased pressure on wine regions worldwide to adapt to changing market conditions.

Economic Tensions and the Egalim Law

Allan Sichel, President of the CIVB, projected a demand surface of less than 90,000 hectares by 2025, representing an 18% decrease in three years. He emphasized the need for interprofessional mobilization to ensure fair remuneration for all actors in the sector,within the framework of the Egalim law,given the strong economic tensions.The focus will be on law proposals rather than a global revision, due to uncertainty regarding the parliamentary calendar.

2025 demand surface of less than 90,000 hectares, representing a drop of 18 % in 3 years.

Allan Sichel, President of the CIVB

Financial Constraints and the Future of Uprooting

Thomas Fonteyraud, representing the Peasant Confederation of Gironde, questioned the CIVB’s position on uprooting, urging them to acknowledge that awarded uprooting is now closed and that renewed uprooting will be necessary. While President Sichel confirmed that the prefect was receptive to the request for a new uprooting plan, he stressed the need to quantify the hectares likely to be uprooted.He also cautioned that the Bordeaux interprofession has not yet taken a position on a third uprooting plan, emphasizing the importance of balancing supply and demand while acknowledging the financial constraints.

The prefect was very sensitive to the request for a new expressed tearing plan.

Allan Sichel, President of the CIVB

The financial viability of further uprooting plans remains a significant concern. The CIVB has made it clear that it cannot afford to contribute financially to another uprooting scheme.This raises questions about how such a plan would be funded and whether the government would be willing to provide additional support.

Looking Ahead: Finding a Enduring Solution

The Bordeaux wine region faces a complex challenge in addressing its wine surplus. While uprooting may provide a short-term solution, it is essential to consider long-term strategies for balancing supply and demand. This may involve exploring new markets, promoting wine tourism, and adapting production methods to meet changing consumer preferences. The future of Bordeaux wine depends on finding a sustainable solution that ensures the economic viability of the region while preserving its rich cultural heritage.

Financial Strain Grips Bordeaux Wine Producers

The bordeaux wine sector is grappling with a severe financial crisis, casting doubt on its ability to implement crucial restructuring plans. The situation is so dire that existing funds are insufficient to support a complementary uprooting plan, leaving industry leaders searching for viable financing solutions.

Recent financial reports paint a concerning picture. Investment in health initiatives has drained €19 million, while contributions have plummeted to €20.2 million in 2024 – an 8% decrease in just one year. This is a stark contrast to 2017 when contributions approached €30 million. Together, questionable claims are on the rise, further straining resources and reducing the cash ratio from nine to six months.

Industry Leaders Demand Action: “Assizes of Viticulture” Proposed

Olivier Metzinger, a member of the Viti 33 collective, is advocating for a extensive industry-wide discussion to address the root causes of the crisis. Drawing from a 2022 study that revealed 40,000 hectares of Girondin vineyards have been operating at a loss since 2010, Metzinger is urging the Conseil Interprofessionnel du Vin de Bordeaux (CIVB) to convene Assizes of viticulture. This forum would bring together a wide range of stakeholders to generate innovative solutions.

The more brains there will be, the more ideas there will be. We need real substantive work to save this sector.

Olivier Metzinger, Viti 33 collective

Metzinger emphasizes the need to improve the profitability of farms, stating, For the moment, we are not working on this. We have to start, we do not move forward quickly.

Supply, Demand, and the Search for Solutions

Allan Sichel, a prominent figure in the Bordeaux wine trade, acknowledges the urgency of the situation but suggests a diffrent approach. While recognizing the need for progress, Sichel believes the core issue lies in the fundamental economics of supply and demand.

The profitability of farms is a mechanical issue of supply and demand. There are no other solutions: you have to lower the supply, promote and create demand.

allan Sichel

Sichel points to ongoing CIVB initiatives aimed at boosting demand, such as the “Bordeaux Experiance” events in Tokyo and San Francisco, and the “Bordeaux Crew” campaign at Wine Paris, as well as local promotions in Bordeaux restaurants and wine bars. These efforts are designed to increase the visibility and appeal of Bordeaux wines in key markets.

Optimism vs. Reality: A Call for Confidence Amidst Uncertainty

Despite the challenges, Sichel maintains a degree of optimism, viewing each industry initiative as a seed planted for future growth. He advocates for a positive mindset, urging stakeholders to focus on the enduring appeal of Bordeaux wines.

Let us regain confidence: our wines please.Pending an economic resumption which it is difficult today to know when it will be announced, let us repeat this as a mantra.

Allan Sichel

Echoing this sentiment, Prefect Étienne Guyot has pledged unwavering state support. However, the precise methods and resources for addressing the crisis remain unclear, especially given the perception that structural issues are increasingly overshadowing cyclical factors.

External Factors: The Shadow of Trade Wars

The Bordeaux wine industry’s woes are further compounded by external economic pressures, particularly the threat of trade wars. The reference to crazy dog in a game of skittles alludes to the unpredictable trade policies of global leaders,which have a direct impact on the wine market. For example, potential tariffs imposed by the united States, a major export market for Bordeaux wines (30 million bottles and €417 million in turnover in 2024), could have severe consequences.

While temporary trade agreements might offer fleeting relief, the long-term impact of trade disputes on global economic growth and consumer spending remains a significant concern. As Sichel notes, In expectation, we can only see the immediate effect of this trade war on global scholarships, and its certain consequences, in the long term, on growth, and thus consumption.