Wine Industry: Strategic Global Directions and Australian Outlook to 2010-11

Australia's wine exports are forecast to rise to 1.3 billion litres in 2010-11, with a value of $4.3 billion. Despite strong growth in demand in Australia's major export markets, prices are forecast to fall under pressure from abundant world supplies and falling demand in some key European countries. In response to falling world wine prices and high Australian wine stocks, real prices for Australian white wine grapes are projected to fall to $412 a tonne by 2010-11. The price of red wine grapes is forecast to fall to $399 a tonne by 2006-07 but then to rise as supplies of some grapes tighten, reaching $464 a tonne in real terms by 2010-11.