Global wine production is set to fall to its lowest level since 1961 while Australia's output is expected to rise six per cent, international wine body OIV says.
World production is expected to fall to 246.7 million hectolitres in 2017, down eight per cent from 2016, due to harsh weather in western Europe damaging vineyards in the world's largest production area, the International Organisation of Vine and Wine said in its first estimates for the year.
In contrast Australia's production was expected to rise six per cent to 13.9 million hectolitres, the OIV said.
The global decline reflects a plunge in output in the European Union, where the world's top three producers - Italy, France and Spain - are each projected to see a sharp drop.
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The European Commission, the EU's executive, estimates the bloc's wine grape harvest will shrink to a 36-year low in 2017 as adverse weather from spring frosts and summer heatwaves takes its toll.
In France, the weather has affected most of the main growing regions including Bordeaux and Champagne, and the government has projected production will sink to its lowest in decades.
The OIV's projections, which exclude juice and must (new wine), put Italian wine production down 23 per cent at 39.3 million hectolitres, French output down 19 per cent at 36.7 million and Spanish production down 15 per cent at 33.5 million.
Argentina was projected to post a 25 per cent jump to 11.8 million after a weather-hit 2016, the OIV said.
Reduced global production may erode a surplus over demand seen in recent years, when consumption was curbed by the effects of a world financial crisis in 2008.
