Australia's 5000 grape growers in the Murray-Darling Basin face an uncertain future, with water allocations at critical levels, a research group says.
The extended drought and reduced River Murray flows meant a struggle for many to remain viable, said Grape and Wine Research and Development Corporation general manager Samantha Hellams.
"In the next few months growers will be informed of their water allocation for the 2008-2009 growing season," Ms Hellams said.
"With water supply at critical levels there is every indication that this allocation will not increase from last year - and in some cases it may be less."
The corporation today launched a program to help grape growers in NSW, Victoria and South Australia manage the challenges ahead.
Ms Hellams said its role would be to help growers make decisions about how they could best remain viable.
"Research shows that it is possible to grow profitable crops on reduced water supplies but management systems must change," she said.
"Growers need to know more about the exact water they need, how to access additional irrigation water and understand more about the allocation decision-making process.
"They also need to know about how to maintain the long-term health of their vineyard."
The new program will help growers liaise more effectively with wineries and understand more about grape purchasing and pricing decisions, the influence of international markets, stock levels and competition.
"Having more knowledge about the market empowers growers to make more strategic decisions," Ms Hellams said.
"It's quite possible that this lack of water could persist for a long time and growers may need to look at alternative business models or vineyard management strategies."