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.