Government statistics showed that wine production for the fiscal year ending June 30, 2007, fell by almost one third from the previous year to 978 million litres (258 million gallons).
A drop in production, due mainly to drought, coupled with increasing sales have drained Australia's surplus glut of wine by 15% to 1.8 billion litres (480 million gallons) last year from 2.1 billion litres (550 million gallons) the year before.
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