The financial downturn is expected to accelerate the need to reduce wine production.

The United States and the UK are Australia's largest wine markets, and their economic troubles were cause for concern at the industry's Outlook conference this week.

Lawrie Stanford, from the Wine and Brandy Corporation, says there's too much wine being made, and cheaper bottles are already feeling the pinch.

"We're simply squeezed out of those price points, and in an immediate sense that means our sales are going to be smaller and the pressures to reduce supply, particularly from warm inland areas, is there and it's immediate."