Australia's wine exports have collapsed, falling for the first time in 15 years

The industry said that as the global economic crisis took grip of key markets in 2008, Australia exported 11 per cent less wine by volume and 18 per cent less by value than a year earlier.

Australia's wine industry at a crisis crossroad

MURRUMBATEMAN (Reuters) - From a picturesque hill overlooking the hazy distant foothills of Australia's eastern ranges, Bruce March can see a crisis facing the country's A$2.4 billion (£1.1 billion) wine export industry with crushing clarity.

March, chief winemaker at Doonkuna Winery, in prize cool climate vine country north of Canberra, had been looking forward to a bumper 2009 harvest, tripling production capacity last year in anticipation of rocketing China demand for his wine.

But the global financial crisis has exploded that interest, bringing with it a soul-searching for Australia's vignerons, ironically when good rains and a late summer are set to bring one of the best harvests for years.

Asian demand grows for Australian wine

SYDNEY (AFP) — Asia had a thirst for Australian wine in 2008, with an industry report on Thursday naming China, Hong Kong and Japan among its top-five growth markets in an otherwise dismal year.

Low-yield harvests and a strong Australian dollar placed enormous pressure on the country's winegrowers last year, driving down the value of exports for the first time in 15 years, said the government's Wine and Brandy Corporation.

"Despite the challenges there were some highlights during the past 12 months, particularly in Asian markets," the corporation said in its annual report, released Thursday.

While the value of exports to Europe and North America declined -- sinking 17 percent and 25 percent respectively -- Asian exports grew eight percent, with the value of shipments almost double that of Europe.