Wine industry reform 'long overdue'

 The nation's wine industry groups say 20 per cent of vines need to go if the sector is to survive.

The Winemakers Federation, the Wine Grape Growers, and other industry groups have issued a joint statement calling for a major restructure of the industry.

Murray Valley Winegrower's Mike Stone says the call for reform is long overdue and addresses oversupply and marketing issues.

He says growers need government exit grants because up to 40 million cases of wine produced annually cannot be sold.

"That is the extent of the problem, 20 per cent of the vineyard area ... that is equivalent to entirely removing the Murray Darling and Swan Hill wine regions," he said.

"We are a region well in excess of 300,000 tonnes and around 20,000 hectares."