Aussie wine sees profit drying up in recession

CHEAP Australian wine could become a thing of the past after hundreds of growers quit the business in the face of dwindling profits.

Grape prices plunged by more than 30 per cent this year and an oversupply has led to 95m cases of wine sitting undrunk in warehouses.

The strong Australian dollar has also meant that the wine is not as competitive on the export market.

Mark McKenzie, the head of Wine Grape Growers Australia, said: “Over time we will see cheap and cheerful wine from Australia drying up in the UK.” In the past 18 months hundreds of growers in New South Wales and South Australia have quit – leading to about 20,000 acres of vines being removed.”