The Australian wine industry has been growing exponentially in the last decade, largely due to a strong export performance. Australia is the world’s fifth largest wine producer.

Wine production for the 2007 Vintage is estimated to be around 1.3 million tonnes, nearly 30 per cent below the 2006 vintage and Australia's smallest harvest since 2000.

The rate of wine grape area expansions has slowed since 2000 in new world producing countries, reflecting high world stocks and falling prices. The drought conditions, frosts and reduced water allocations throughout most of Australia's wine grape growing regions have a significant impact on grape wine production in 2006-207.

However in 2008-09 total domestic wine grape production is projected to recover to 1.9 million tonnes and gradually increase to nearly 2 million tonnes by 2011-2012.

The fundamentals underlying Australia’s success are driven by the consistent supply of high quality, well-priced products matched with effective marketing and brand management. The industry is committed to “Innovation and Style from Vine to Palate” and recognises opportunities for branded wines in high premium markets. Emerging segments are also developed in wine tourism and through horizontal integrations with other gourmet food industries such as olive oil.

The implementation of the Australian wine industry’s 2025 strategy, will help accelerate market expansion and reinforce the industry’s leadership in the global market place.

(Source: ABARE, Australian Commodities, March Quarter 07.1, 2007.)