Minister says France must embrace wine competition

By Anna Willard

BORDEAUX, France (Reuters) - The French wine industry must adapt to fierce new world competition but France will oppose any European Union reform plans that do not work in its favour, Farm Minister Christine Lagarde said on Monday.

Lagarde urged producers to simplify their methods to make French wine more accessible to average drinkers and see off the threat from newer producers such as the United States, Australia, South Africa, Argentina or Chile.

"The moment is now or never to launch ourselves into the race of globalisation, to accept the constraints so that we can better profit from the opportunities," she said at the opening of Vinexpo, the world's largest wine fair.

"If we don't do it, others will ... Let's not let others reap the harvest in our place."

The French wine industry is suffering because domestic wine consumption per head has fallen to about 55 litres annually from 100 litres in 1970.

It is also struggling to compete with the newer producing countries which have less complicated wine classification systems and better marketing.

France's top-end wine producers are having successful sales abroad after an exceptional year in 2005, but many small middle- or low-end producers are selling their wine at a loss.

One southern group of winemakers, the CRAV, has threatened violent action if French President Nicolas Sarkozy does not take steps to support the wine industry against foreign competition.