AUSTRALIA'S wine exports have fallen in volume and value for the first time in 14 years due to better balanced grape supplies and the increased value of the dollar.

Shipments for 2007-08 totalled 702.1 million litres, a 12 per cent decrease for the past financial year.

Value was 11 per cent lower at $2.657 billion, Australian Wine and Brandy Corporation data shows.

But the decreases are a relatively small dent in the industry's remarkable performance since 1994-95 when the volume of shipments was 114 million litres and the value just $380 million.

A drought and frost-ravaged grape crop in 2007 largely led to a 32 per cent decrease in bulk shipments to 153 million litres worth $188 million, a 19 per cent decrease.

"We expected it (the decrease in volume) to be a couple of points lower but clearly exchange rates had a bigger than expected impact," said Lawrie Stanford, the AWBC's manager of information and analysis.

The average price for each litre of wine exported increased 1 per cent to $3.78 because of an increase in the price of bulk wines and because higher priced bottled wine shipments increased as a proportion of total shipments.

Of the two major markets, Britain and the US, the former performed better, shedding 5.7 per cent of volume to 265.9 million litres worth $876.5 million (minus 10.1 per cent) while the US shipments decreased to 180.7m litres (minus 18 per cent) worth $741 million (minus 22.5 per cent).

Denmark recorded the biggest increase in volume and value because, Mr Stanford said, it was a major packager of bulk wine for Europe and because the Australian dollar had been relatively benign against the Danish kroner.

During the year, the volume shipped to China decreased 41.5 per cent to 13.4 million litres as bulk wine exports were slashed. This led to a 111.1 per cent increase in the average price to $4.52.