THE volume, value and average price of Australian wine exports dropped considerably in the 12 months to August.

Shipments eased 13 per cent to 702 million litres, while their value decreased a similar percentage to $2.6 billion.

But Australian Wine and Brandy Corporation information and analysis manager Lawrie Stanford said a large part of the drop in volumes had been expected. Producers no longer had to ship wine out unprofitably to deal with an oversupply, as in previous years, he said.

"A year ago, we were shipping 800 million litres and we said 70 million litres of that was unprofitable shipments to deal with the oversupply," Mr Stanford said. "We expected shipments to come back to 730 million litres and they came back to 702 million litres - the additional drop-off has a lot to do with stressed economies in the US and UK and the strength of the Aussie dollar."

The average price paid for Australian wine dropped by the smallest of margins - 1 cent - to $3.73 per litre.

The price of bottled wine dropped 7 per cent to $4.47 a litre while the price paid for bulk wine jumped 20 per cent to $1.23 a litre.

The value of wine shipped to the US and Europe dropped by 21 per cent and 10 per cent respectively.

However, the value of wine exported to Asia rose 6 per cent. While the growth in Asia did little to offset the downside of drops in value and average price, Mr Stanford said it was "strategically important".

"Asia has emerging markets - they're long-term prospects but markets that need to be developed," Mr Stanford said.

"The corporation is appointing people in China and making a commitment in Japan too."

Mr Stanford said the Chinese wine industry was growing rapidly, and because the local production was aimed at the lower end of the market, Australian wine suited the higher-value restaurant and hotel trade.

The AWBC has identified three key developing markets for development - China, Russia and South Korea.

The Russian Government seems keen to move consumers away from "intense alcohol", such as vodka, to drinks such as wine, Mr Stanford said.

CAPTION: Liquid gold?: the drop in wine exports is said to be largely a correction in oversupply.