PROFILE - AUSTRALIA'S WINE INDUSTRY - AUG 2004.

(From Asia Pulse)

Byline: Paolo Hooke

*****************************************************

A PROFILE OF AUSTRALIA'S WINE INDUSTRY

PREPARED BY ASIA PULSE ANALYSTS (UPDATED AUGUST 2004)

*****************************************************

OVERVIEW:

After a period of rapid growth in the world wine market, the Australian wine industry is healthy, maintaining its international competiveness and strategically well placed, enjoying an influential presence in key overseas markets, according to the Australian Wine and Brandy Corporation.

The Australian wine industry holds a top-3 ranking in three of the world's major wine importing markets: the United Kingdom, United States and Ireland.

The wine industry was the stand-out amid a strong performance by Australian food exports in 2002/03, according to Australian Agriculture Minister Warren Truss. One of the highlights was a jump in wine exports - by $A319 million ($US224.34 million), indicative of Australia's reputation as a supplier of high quality wine at affordable prices to niche and specialist markets.

Within the industry, there is a continued shift to a higher product value mix, although declining returns and …