France’s Cooperatives Under Pressure: One in Five Facing Financial Difficulties

A grim assessment reveals that major issues are primarily affecting cooperatives focused on red wine production.

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A large proportion of French vineyards are cultivated by co-operative winegrowers. Some of them are struggling with major economic difficulties. (Photo: barmalini/stock.adobe.com)
A large proportion of French vineyards are cultivated by co-operative winegrowers. Some of them are struggling with major economic difficulties. (Photo: barmalini/stock.adobe.com)

The current critical situation facing the French wine industry is becoming more tangible. According to the trade platform Vitisphere, 100 French cooperative wineries are currently in difficulty, representing 20% of all wine cooperatives in the country.

This estimate is based on an assessment by the trade association Vignerons Coopérateurs, whose members produce nearly half of France’s wines. The crisis is particularly acute in the Languedoc, where 37% of cooperatives are affected, in Bordeaux with 40%, and in the Rhône Valley with 50%. Producers specializing in red wine are especially impacted.

Amid this crisis, characterized by a general decline in sales and a new, albeit smaller, vintage arriving in cellars, numerous industry representatives are appealing to the government for a restructuring fund. Vitisphere quotes Ludovic Roux, President of Vigneron Coopérateur d’Occitanie, saying, “If profitability does not return within the next few months, disbandment will follow. We are a public service generating value. Cooperatives cannot be relocated, and their equity cannot be distributed.”

At least one politician, Jean-René Cazeneuve (Ensemble pour la République), has taken action. He has proposed an amendment to the 2025 budget draft that would release €75m over three years, including €25m in 2025, according to Vitisphere. However, the amendment was rejected in the finance committee, and Cazeneuve now plans to take his proposal directly to the government.

Mergers among cooperatives are also being considered. “We must not be afraid to use certain words. They are not taboo. What matters is the preservation of winemakers in their operations,” said Joël Boueilh, President of Vignerons Coopérateurs de France, to Vitisphere. SP/VM

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