Rhineland-Palatinate opens vineyard uprooting premium scheme
Winegrowers in Rhineland-Palatinate may apply from Monday, November 9, for financial support to remove vineyard plots that may no longer be economically viable under current conditions.
Applications open November 9
Winegrowers in Rhineland-Palatinate will be able to apply from Monday, November 9, for premiums to uproot vineyards. The state government intends the measure to reduce production capacity as the wine market contends with declining demand and higher costs.1
Rhein-Zeitung reported on November 7 that wine production is exceeding demand while production expenses have risen. The program is intended to bring the region’s supply potential more closely into line with the volumes the market can absorb.1
Reducing future wine production
The premiums are meant to encourage growers to stop cultivating plots that may no longer be economically viable under current conditions. Officials hope that a smaller planted area will alleviate oversupply and some of the resulting pressure on prices.1
The measure targets the region’s future production base, rather than only the sale of existing wine stocks. It is being introduced during an industry downturn in which growers face both higher expenses and a market less capable of sustaining previous volumes and returns.1
A major German wine state
Rhineland-Palatinate is a leading center of German wine production and contains 6 of the country’s 13 wine-growing regions. A reduction in its vineyard area could eventually influence grape availability and wine output across businesses including wineries, bottlers and distributors.1
The published report did not state the amount available to each grower or the length of the application period. Its account presented the scheme as a response to excess supply, falling demand and the financial strain affecting winegrowers in Rhineland-Palatinate.1
Sources
Written by the Dionysus editors from the sources above.
