THE Tasmanian wine industry is enjoying a 30-year sweet spot, and industry leaders expect growth to continue.

Tasmania is the only state to increase plantings in 2010-11 with rapid expansion on the East Coast and in the South-East.

Standouts have been big investments at the new Iron House Vineyard, with plans to establish 110ha of vines near Falmouth, on the East Coast south of St Helens, and the rapid growth of the Frogmore Creek vineyard, near Sorell, which this year reached 84ha, from 28ha in five years.

It follows expansion of Joseph Chromy wines at Relbia near Launceston, Kelvedon Estate at Swansea, and Spring Vale Wines at Cranbrook, north of Swansea.

John White, of Iron House Vineyard, said he was determined that Iron House would become a nationally and internationally recognised wine brand.

But he pleaded with politicians and government departments to stop making life difficult for farmers who wanted to change land use on already cleared areas of farmland.

Mr White said such innovation, which required a high capital spend, had been stifled by government regulations, which robbed farmers of their right to farm.

Wine Tasmania industry development and extension officer David Sanderson said production of the state's predominantly boutique wines had never been enough to satisfy demand.

Mr Sanderson said a number of investors encouraged by the Department of Economic Development, were homing in on new locations, with a number of recent land purchases.

He said major wine companies such as Accolade (previously Hardy), Brown Brothers and Treasury Wine Estates (previously Fosters) had established Tasmanian bases to access the best that the state had to offer.

Mr Sanderson said Tasmania's premium drops were hard to match elsewhere.

"We are recognised worldwide, outside Champagne, as the place to get high-quality sparkling wine," he said.

"And, outside Burgundy, for our excellent pinot noir."

Mr Sanderson said Tasmania's risk of over-supply was limited by the shortage of available sites, capable of producing good wine.

He said anticipated industry expansion, would be modest on a national scale, but significant for the local economy.

Mr Sanderson said many existing vineyards, which averaged just 5ha in area, had room to grow.

"They've got a demand and they've got a bit of land, to put another hectare in," he said. Mr Sanderson said New Zealand's blind love affair with the suddenly fashionable sauvignon blanc variety, according to the New York Times, ended up with too many mediocre wines. It was a situation that Tasmanians believed they could avoid.

He said Tasmanian eyes were focused on the best that their state's unique environment could produce.

Latest figures from 2009-10 put the Tasmanian wine industry's value at $75 million, employing roughly 1000 people.

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