Too much wine! -- in europe, so there subsidizing it :)

S

SC Maintenance

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Jun 8, 2022
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Apparently inflation in Europe is causing less people to drink wine, so there is a glut.

In true socialist fashion, there propping up the wine makers to ensure the big evil free market doesn't drive the price of wine down. So no cheap wine for you.

Thanks to today’s decision,it will be possible until 15 October 2023 to distil the wine most affected by the market crisis under the support programmes for wine. The wine distilled is taken out of the market, and the alcohol obtained can only be used for non-food purposes to avoid a distortion of competition.

Avoid a Distortion of Competition. LOL :ROFLMAO: :ROFLMAO: :ROFLMAO:

Won't propping up wine prices just lead to growers continuing to make too much wine?

full story:

agriculture.ec.europa.eu

European Commission adopts market measures to support EU wine producers

The European Commission adopted several measures, including crisis distillation, to support EU wine producers.
agriculture.ec.europa.eu agriculture.ec.europa.eu
 
No, if they don't subsidize the wine producers they go out of business, and that will decrease supply even more

The wine makers have no choice but to produce, no production is no income and the costs have been made already
 
SC Maintenance said:
Exactly - when there is no demand for your product you go out of business. That's called supply and demand in the free market.
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The demand will return, but not the supply because the experience is lost. At best you get worse wine. And vineyards take a while before producing quality and quantity again
 
To put it in other terms: imagine that there's a big epidemic, and travel is restricted. Due to less travel airlines have no demand for Airliners and Boeing threatens to go under.

What do yu do, let it go under and buy Chinese or Airbus after restrictions go away?
 
Leo99 said:
This is not an exclusive Europe thing. Same thing happens in the USA with milk and wheat and corn among others.
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I agree there could be a good argument made to reform our own ag subsidies, however i can draw a pretty stark distinction between milk, wheat and wine. No?
 
Jetronic said:
To put it in other terms: imagine that there's a big epidemic, and travel is restricted. Due to less travel airlines have no demand for Airliners and Boeing threatens to go under.

What do yu do, let it go under and buy Chinese or Airbus after restrictions go away?
Click to expand...
Yes, but your confusing travel with wine. Wine is a luxury item. What concern of the governments is it to prop up wine producers?

Boeing is the biggest US airframe producer. It has the potential to affect the entire economy not to mention national security.

Should we subsidize bourbon and twinkies - there popular also :ROFLMAO:
 
SC Maintenance said:
Yes, but your confusing travel with wine. Wine is a luxury item. What concern of the governments is it to prop up wine producers?

Boeing is the biggest US airframe producer. It has the potential to affect the entire economy not to mention national security.

Should we subsidize bourbon and twinkies - there popular also :ROFLMAO:
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Wine is not a luxury item in Europe. It is a staple like juice.
 
I believe the markets have to sort it out by itself, but I'm sure there are lots of people who disagree.
I live in the Midwest where a lot of grain is produced and our government did the same thing to our farmers back in the '70s. They put up many grain storage buildings and paid the farmers for their excess crops and then just put grain in storage facilities and held it there...for years. While the wine growers probably don't have a problem with bugs destroying wine, the government had a problem with rodents and bugs getting into the stored grain. So what did they do? They hit the storage facilities and the ground with high doses of carbon tetrachloride. So now those storage areas are long gone, but they are still leeching the nasty chemicals into the ground water and there is no easy way to stop or get rid of the stuff. I know of one area where the government came in and has tried to put in underground water collection areas and the water is pumped in to a storage tank. From there, (here's where you have to roll your eyes), the water is then pumped on the high school football field to water the grass. The story by our government is that it evaporates and breaks down real quick when it hits sunlight and atmosphere. :cool:
 
This is really of no surprise with how Europe is about protecting cultural heritage (think how strict they are about protected designation of origin) seeing how important wine production is to the cultural heritage of many regions in Europe letting producers go belly up en masse could have a rippling cultural and economic impact.
 
If you’re talking about grapes and cheese yes. But boat loads of people have been risking life and limb to reach Europa upon the invitation of its leadership for several years.
blufeb95 said:
is really of no surprise with how Europe is about protecting cultural heritage (think how strict they are about protected designation of origin
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gman2304 said:
If you’re talking about grapes and cheese yes. But boat loads of people have been risking life and limb to reach Europa upon the invitation of its leadership for several years.
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a majority of them escaping war zones back home, and trying to find a safe place to live and raise their children...
too many people here in the states forget this, since we haven't really seen combat operations on our soil in well over a century, and folks haven't had to deal with the repercussions of such.
 
earlyre said:
a majority of them escaping war zones back home, and trying to find a safe place to live and raise their children...
too many people here in the states forget this, since we haven't really seen combat operations on our soil in well over a century, and folks haven't had to deal with the repercussions of such.
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Some, but I doubt a majority are fleeing war zones. What is known as fact is that a majority of them are young adult males and not families. Many European countries tightened up border enforcement after the first year of chaos.
 
SC Maintenance said:
I agree there could be a good argument made to reform our own ag subsidies, however i can draw a pretty stark distinction between milk, wheat and wine. No?
Click to expand...
People do not like a true free market or maybe they just are not used to it. You saw people up in arms about the price of eggs a short while ago. People want stability in the price of things they use on a regular basis. I'm also not a fan of price gouging laws. Let the free market decide the price of a sheet of plywood or package of toilet paper, but most people don't want a true free market.
 
Leo99 said:
People do not like a true free market or maybe they just are not used to it. You saw people up in arms about the price of eggs a short while ago. People want stability in the price of things they use on a regular basis. I'm also not a fan of price gouging laws. Let the free market decide the price of a sheet of plywood or package of toilet paper, but most people don't want a true free market.
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No, for production of items with fairly high costs to enter the market, a total free market often ends up with a monopoly or duopoly, and then higher prices...
 
Also, you cannot just grow grapes anywhere, it is a regional product and a product that takes many, many years to establish and build an internation reputation in that area. Wine sales and exports are very lucrative for the governments involved.
They don't want to loose that (possibly forever) because of a glitch in the market.
Sustainability and stability!
 
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