Wine exports continuing to fall

Higher alcohol taxes in the UK, unfavourable exchange rates and the global financial crisis have all led to wine exports declining.

A new report shows that from February 2008 to January 2009, exports declined 701 million litres, or 9 per cent.

Manager of information and analysis at the Australian Wine and Brandy Corporation, Lawrie Standford, says falling exports are a trend that's been happening for a while.

But this year, the global crisis has contributed significantly to the downturn.

He says Britain still takes the majority of Australia's wine, but high taxes on alcohol there are making it harder for wine producers to make good profits.

The exchange rates have also had an impact, says Mr Standford, with the Australian dollar "still not travelling that well against the pound".

In the end, he says, it's "all about the financial crisis and exchange rates."

The value of annual Australian wine exports, according to the latest report, has fallen to $2.46 billion.

In better news, the value of shipments of bottled wine to China increased 34 per cent, up $18 million.

Hong Kong was also up 20 per cent, which is up $6 million