The Australian Winemakers Federation has warned that beleagured Western Australian producer Evans & Tate is not alone in its battle with difficult economic condistions.

Evans & Tate returned to stock exchange listing this week after reporting an expected loss of A$7.5m for the financial year and a A$10m write down in wine inventory.

Following a number of years of heavy investment the industry was experiencing a reality check, Federation chief executive Stephen Strachan said.

A number of companies had had to write down wine stocks basically because they had paid too much for the grapes. Grape prices would remain relatively low for some time, Strachan predicted.