Sacre bleu! Cognac producers to pay to rip out vines

French cognac producers plan to pay to tear their vines out by the ‍roots to cut output in order to address a drop in demand ​for the high-end liquor due to tariffs.. Cognac was one of ⁠the main casualties of the recent trade tensions between the European Union, the United States and China, which have threatened to jack up tariffs on it.. An anti-dumping probe has also hit ‌brandy sales ​in China..

France's main association of cognac wine growers ‍will pay its members 6,000 euros ($A10,220) per hectare of vineyard destroyed, on top of 4,000 euros already offered by the French agriculture ministry, the UGVC's head said.. "We need to realign the ​volume of production with demand," UGVC ‌head Anthony Brun told Reuters.. The UGVC estimates the total volume of cognac ​sold has fallen by more than a third in the ‍past three years, to about 140 million bottles in 2025..

Brun said it will borrow money over a 10-year ​period ​to finance the handouts.. ​He declined to estimate how many ​hectares will be destroyed.. Recent trade deals between the EU and Mercosur, as well as the EU and India, may open new markets for cognac, but it will take years to build lasting demand, Brun said..

Australian Associated Press.