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French wine exports sank again in the first
quarter, confirming a downward spiral which has plunged the sector into crisis
and brought thousands of wine-growers out onto the streets in protest.
``Global over-production in 2004, which is put at between 10 and 20 million
hectoliters, is pulling prices down and adding to the problems of French wines
which are being asked to become simpler in taste to meet growing world
consumption,'' said Louis-Regis Affre, an official from the French Federation
of Exporters of Wines and Spirits (FEVS).
Apart from champagnes and sparkling wines, exports of French wine dropped some
13 percent in value and 13.2 percent in volume in the first quarter of this
year compared with the same period last year, said FEVS.
This adds to the misery seen last year, when French wine exports lost some 9.2
percent in value, of which some 752 million euros (HK$7.35 billion) were lost
in just the first quarter.
The French government recently unlocked seven million euros in aid in a bid to
throw a lifebuoy to the country's wine producers, but for many it is merely a
drop in the ocean.
``It's very little in relation to what is actually needed, and the framework to
implement it isn't even in place yet,'' said Affre.
On Wednesday, thousands of producers took to the streets of the southern city of
Nimes in the Languedoc-Roussillon region - where exports have fallen 16.7
percent apart from table wines - demanding further emergency measures to save
wine-growers from disaster. ``For some people the only solution is to pull up
their vineyards and it is with tears in our eyes that we ask you, Mr Minister,
to help them,'' said Philippe Vergnes, head of the Aude regional wine-growers
union.
French Agriculture Minister Dominique Bussereau has pledged to organize a
meeting in July to take stock of the measures put into place last July.
The worst hit regions are Cotes du Rhones, which has seen its exports drop by
34.7 percent in value, Bordeaux down some 17.7 percent apart from the grand crus
which have seen exports rise 9.4 percent, and Beaujolais, where exports have
slipped 18 percent. The wines bearing the brunt of the downturn are the
so-called appelations d'origine controlee, meaning they meet tough
French quality standards.
Affre said producers of table wines had made great efforts in recent years to
improve the quality of their beverages.
Champagnes have also seen exports continue to rise 14.4 percent in value in the
first quarter, whereas spirits are up 5.7 percent and liqueurs too have been
buoyed by a 4.2 percent increase.
``Champagnes and spirits have based their success on their brand names. The
appellation wines must no longer take an elitist approach to the market, but
must do more marketing to highlight their labels and let market leaders
emerge,'' said Affre.
A glimmer of hope is on the horizon for 2006 which experts say will see a
smaller global harvest.
``We need to tax foreign wines,'' said Maurice, a wine producer from Beziers,
attending the Nimes protest, which attracted between 7,500 and 11,000
protesters.
AGENCE FRANCE-PRESSE
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