Although the Australian wine industry is facing an over-supply of wine grapes there could be another shortage within the next five years, according to the Wine and Brandy Corporation.

The prediction was made by the Corporation’s information and analysis manager Lawrie Stanford in a paper to be presented to an industry outlook conference in Adelaide today.

Stanford said industry data indicated what he called a short term surge would peak this financial year. “The industry has responded more quickly than expected to the current supply surge with lower plantings and accelerated removal of vines in 2000 and 2001 resulting in net plantings in spring (southern hemisphere) at just 1000ha, down from the net planting peak of 14,000ha in 1998,” Lawrie said.