Increased consumption in Australia's key wine export markets, the UK and US, will be crucial in medium term, according to David Woods, chief executive of Hardys Wines, now a subsidiary of Constellation Brands.

Woods told an agriculture conference in Canberra that, despite opportunities in emerging markets such as Asia, these are long term prospects and continued growth in current key export markets is crucial for the industry in the medium term.

Woods said Australia's warm climate regions (mainly along the River Murray in south-eastern Australia) producing low and mid price point wines remained the industry engine room.

"At current prices, sustainability will be difficult for some cool climate regions," Woods added.