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Australian wine production down as demand rises

Published:  23 July, 2008

Last year saw mixed results for the Australian wine industry as production dropped while sales increased, new figures show.

Data from the Australian Bureau of Statistics from 2006-07 showed some 978 million litres of wine were produced last year - down by 32% on the 2005-06 figures.

Production figures were down for both red and white varietals with red/ross decreasing by 39% (to 472 million litres) and whites dropping by 24% (to 475 million litres).

Drought conditions in the country are among the main causes for the fall in supply of Australian wine.

Exports from Australia - of which the UK is the largest purchaser - increased last year reaching 787 million litres, which represents a 9% increase on the previous 12 months.

The UK imported 269 million litres of wine from Australia last year.