From the Australian Broadcasting Corporation:

"The export market in Australian wine now has really been knocked for six; they were getting wine into England, Europe and America and now that's been reduced to a trickle flow."

Stephen Strachan from the Winemakers Federation of Australia says the combination of the grape glut and the increasing dollar has forced many WA wineries to close.

"It's survival of the fittest at the moment and a lot of the people we saw coming into the industry are exiting and finding that the future is not there,"

But it is not all bad news.

The closing of vineyards across Australia means the grape glut looks set to ease through 2011.

"As difficult as it is to see, it is really what did need to happen because the industry needs to get back on a sustainable footing," Mr Strachan said.

For more, see: Wine industry faces cheap wine and no growth