Australian wine producer Tandou is set to leave the wine industry, according to local reports.

The Australian Broadcasting Corporation has said today (5 September) that the agriculture company will sell its wine assets and focus on its cotton and orchard areas.

Tandou was reported yesterday to be selling one of its wineries, but ABC said that the company will also sell its Broken Earth wine brand as part of the category exit.

"We need to focus our resources and strategically have made the decision to focus our resources in the areas of the cotton farm and the orchard areas and had to make a decision to exit the wine business," Tandou's chief executive, Guy Kingwill, told ABC.

Kingwill also warned that job losses were possible among the 30 staff at the Riverland winery.

Last week Tandou reported a loss in the six months to 30 June of A$6.1m (US$4.7m). Sales for the period rose, however, to A$13.5m from A$10.4m in the corresponding period a year earlier. The company blamed its losses on its ability to plant cotton, and also on the downturn in wine industry trading conditions.

In February, the company sold its Millewa vineyard to Great Southern Vineyards Holdings for A$9m.