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Australia's widely publicized wine glut is being eased by what usually are thought of as bad weather conditions. In this case, successive waves of drought, frost and rain have helped reduce the wine harvest, according to the latest report from the Australian Wine and Brandy Corp.
AWBC, established by the government to provide strategic support to the wine sector, says the 2007 wine grape harvest is expected to be the smallest since 2000 and one-third smaller than 2006.
Australia is expected to make 105 million gallons less wine than the prior year and some of the wines should move to a higher price range.
The AWBC said it expects a return to "supply-demand balance" by either next year or 2009.
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