Shiraz makers shine

Every year, the wine industry bible The Australian And New Zealand Wine Industry Directory reports a rise in the number of Australian wine producers, usually about 10 per cent. This year, the directory notes producers - not all have wineries- are up by 7.1 per cent. The total is 2299, an increase of 153 from last year, although there are many more than the directory lists: most weeks I look up someone new and fail to find them.

Exciting new producers are continually appearing, too many for we scribes to acknowledge. Many of their most impressive wines are shiraz, which is no surprise: it's Australia's signature grape. One-fifth of the samples I receive are shiraz, which is a bit frustrating as it doesn't give a balanced view of the market.

Last year, revenue from Australian wine exports reached $3 billion

Australia is now the number one supplier of imported wines in the UK, Ireland, Singapore and New Zealand, and holds the number 2 spot in the US and Canada.

However, that success is now under threat as the industry faces two of its greatest challenges - a strong local currency and, crucially, a lack of cheap, abundant water.

The drought-stricken Murray-Darling basin supplies about 60% to 70% of Australia's wine grape production, and most growers are now operating on 16% of their water entitlements.

Interview with Australian wine expert Matt Skinnner

Matt Skinner came to the public eye as Jamie Oliver's wine-loving sidekick, and over the past few years he has rubbed shoulders with a host of celebrities. Now, though, he has decided to head home to Australia. Has he had enough of the elitism in the UK wine trade? Absolutely not, he tells James Aufenast

Matt Skinner has been keeping himself busy since he moved back to his native Australia. As well as being Jamie Oliver's wine consultant, and overseeing the list at Jonathan Downey's Match Bar Group, he has been filming a new series for Australian TV, and has been around the world promoting and researching the latest edition of his book, The Juice.

The long boom turns to bust

Historically, many Australian winemakers have derided the French approach to making wine, especially the idea that the finest wines come only from a terroir—the union of climate and soil characteristic of each place. Australian producers instead pride themselves on what they regard as a less snooty and more democratic approach: blending grapes from different regions to achieve a consistent wine. But some are now asking whether marketing an Australian wine's locality, as much as its grape variety, might not work better.