The Australian wine industry is facing hardships, both in producing and in selling wine. On the production side, drought keeps striking hard and is very likely to continue to do so in the coming years. Hence the importance of irrigation for producers. Bankrupcy looms over the producers of Riverland, in the Murray-Darling Basin, one of the main producing areas of the country. "In the next few months growers will be informed of their water allocation for the 2008-2009 growing season. With water supply at critical levels there is every indication that this allocation will not increase from last year - and in some cases it may be less. (...) Research shows that it is possible to grow profitable crops on reduced water supplies but management systems must change. Growers need to know more about the exact water they need, how to access additional irrigation water and understand more about the allocation decision-making process. They also need to know about how to maintain the long-term health of their vineyard.", explained Samantha Hellams, Grape and Wine Research and Development Corporation general manager.

Aussie producers also have to face the competition of the New Zealand white wines, as the Kiwi crop set a new record in 2008. Imports of wines from New Zealand into Australia have multiplied by four in just one year. In the meantime, overall australian wine exports have dropped 13% in volume and 12% in value, when comparing figures of July 2007 to those of July 2008.