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STORY: A global decline in wine consumption has hit Australia particularly hard as demand shrinks fastest for the cheaper reds that are its biggest product, and in China, the market it relied on for growth.

China is expected to allow imports again this month but that will not mop up the glut, as its demand has fallen much more rapidly than other countries.

More than two billion liters of unsold wine, around two years' worth of production, lies in storage in the world's fifth-largest wine exporter, some of it spoiling as owners try to offload it at any price.

The government forecasts lower wine grape prices again this year.