What To Do With A Wine Surplus?
These two articles explains that there is a surplus of wine in Europe. Over the past few decades consumers have decreased their drinking habits and new competitors have entered the market from the US and Australia. Currently European governments are subsidizing grape farmers to help them get through a difficult period as wine sales get harder. Now they are suggesting that they distill the wine surplus into an alcohol that can be sold at 1/10 of the normal price, and they want to destroy many of the grape vines to get rid of the future surplus. Why don’t the winemakers just sell the wine surplus for less money? Why do they have to distill it into alcohol in order to get rid of it? It seems to me that in most situations when you have a surplus, you can cut your prices and get rid of it. I am sure that Americans will buy the French wine if it is half the price of the US for the same or better quality. Also, it does not make any sense to me why they would rip out perfectly good grape vines. That is just stupid. Why don’t they either just stop harvesting the grapes, or still harvest them, but not for wine? Why would you waste money and man-power to actually rip out the vines unless you were going to use that soil for something more profitable? I think that it is ridiculous to pay/subsidize farmers to produce something that no one wants just to keep the farmers going. That may help the farmers transition into a different job, but it is only a short term solution. Hello! The world is going through a change. Let nature do its thing. They are just going to have to sell their product for less and get out of the business, or try to find a special niche.