For Australian Winemakers, More Turns Out to Be Less

SYDNEY, Australia — Just a few years ago, Australia was being hailed as the great international success story of the wine business, challenging the dominance of France, Italy and Spain. From 1999 to 2007, foreign sales grew more than threefold, making Australia the world’s fourth-largest exporter.

But even as its star appeared to be rising, the Australian wine industry was sliding, selling a greater volume of wine at increasingly lower prices. Last year, the average price per liter of Australian wine sold overseas was about 25 percent lower than it was a decade ago, a level many say is unsustainable.

The industry is also facing increased competition from lower-cost rivals and changing consumer tastes. Last year, exports fell 9 percent by volume, the first such drop in a decade. Many vintners are hanging by a thread.

“The industry is in crisis — anything less than that is avoiding reality,” said Jeremy Oliver, an Australian winemaker and critic. “It is interesting that nobody really saw this coming.”

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