Crisis distillation exceeds budget threshold of 2 million hectolitres in France

Monday June 22 2020 by Vitisphere

“We have no figures. There is total uncertainty”, says Jérôme Despey.“We have no figures. There is total uncertainty”, says Jérôme Despey.

As the crisis distillation campaign came to an end at midnight on 19 June, French authorities struggled to get a clear picture of progress made on registrations. “Even at FranceAgriMer they don't know what the figures are. They receive aggregated files from the distilleries, but some contracts are reviewed and applications need to be checked (certifications, monthly summary statements)”, explains Jérome Despey, chairman of the FranceAgriMer wine board.

Although the authorities are used to managing applications for measures under the Common Organisation of the Market for Wine (CMO wine) until the last minute, the distillation campaign has left analysts with doubts. The distilleries themselves do not have an overall picture: for some, the influx of contracts is reported to be huge, whilst others feel there are not that many applications. Until the figures are finalised by FranceAgriMer on Monday 22 June, there are no real certainties. Bar one, and that is that the current budget threshold of 2 million hectolitres of wine to be distilled has been exceeded. “According to industry sources, it is clear that we have exceeded the 2-million-hectolitre mark for which funding is available. I am sure the measure won’t be under-subscribed, nor will there be a tidal wave in the other direction”, predicts Despey. The Languedoc winegrower says he does not know if the volumes signed up for the scheme will ultimately total “2.2, 2.4 or 2.6 million hl”, but he adds that this is not a surprise, considering the industry has been claiming it needs 3 million hl for months.

 

 

 

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