The Australian Wine and Brandy Corporation says at the same time, the average price of wine increased by five per cent.
The Corporation's Lawrie Stanford says the volume decline is due to short harvests.
"Volumes have declined as we have been expecting with two short harvests," he said.
"The 2008 harvest is coming in short and it follows up from a short harvest last year, which means that the industry is having the opportunity to draw down the oversupply of wine that we have had on hand for several years now."
