Australian wine export prices fell 6% last year due to the country's wine glut, new statistics show.

The average price per litre dropped to A$3.82 (US$x) in 2006, according to figures from the Australian Bureau of Statistics (ABS).

However, the ABS said yesterday (29 January) that Australian wine sales were up at home and abroad last year.

Domestic wine sales reached 431 million litres, inching up 0.2% on 2005. By contrast, exports were up 8% to 722m litres.

The ABS said that over a third of Australian wine exports were destined for the UK, with the US and Canada the next two biggest export markets in terms of volumes.

Red and rosé wine production rose 2%, the figures showed. White wine production fell 3% to 622m litres.