Australian wine producer Norman Wines has warned grape growers that July payments for this year's harvest will be delayed until early August.

A spokesperson for the company said: "Norman Wines is paying its growers and expects to have all July payments made in full during the course of the month and early August."

According to a report by Business Intelligence, Norman Wines made a loss of A$10.3m in the first half of 2000-2001 with debts of A$45m (US$22.9m). The company is also trying to free up around A$25m in cash, according to the report through its winery sale in Riverland.

The Norman Wines merger deal with Xanadu Wines is due to be finalised on 13th July.