Champagne winegrowers threaten to block an extension of the production area

Thursday October 17 2019 by Vitisphere

Maxime Toubart, chairman of the Champagne winegrowers’ organisation SGV (left), warns: “If we have no guarantee that the new areas resulting from the review of production boundaries will be regulated after 2030, we will face our responsibilities and suspend work on boundary demarcation”.Maxime Toubart, chairman of the Champagne winegrowers’ organisation SGV (left), warns: “If we have no guarantee that the new areas resulting from the review of production boundaries will be regulated after 2030, we will face our responsibilities and suspend work on boundary demarcation”. - Photo credit : Marion Sepeau Ivaldi

Since the beginning of the year, the Champagne winegrowers’ organisation (SGV) has been working to safeguard its future, which involves maintaining the regulation system for vine plantings until 2050. This is the thrust of the draft CMO text left by the previous European term of office. But, with the renewal of the European Commission and Parliament, the balance is fragile and nothing is yet cast in stone. Also, the support of the French Government, collaboration between Member States and rallying of European producer organisations have completely changed since 2010/2013, when the principle of regulating wine production in the 2013 CMO was salvaged.

Avoiding the windfall effect 

The situation has led the Champagne winegrowers’ association to speak out, and to warn of the potential consequences in no uncertain terms. “We will block the process of extending the Champagne production area if there is no clarity on the long-term future of a planting right system”, said SGV chairman Maxime Toubart. The decision would thwart many investors' plans involving billions of euros. The decision would apply from 2024, the year the new Champagne production area is due to be unveiled. If in 2030 vine plantations were to be deregulated, Champagne could witness mass plantings within its extended boundaries. This would be enough to destabilise its economy, which revolves around finely balanced management of scarcity.

 

 

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