(SmartCompany) - The falling Australian dollar could boost the local wine industry, which has been struggling since 2007, according to a leading industry expert.

Although the Australian wine industry has seen enormous growth over the past decade, a report released last year by the Grape and Wine Research Development Corporation noted the industry is now in a contraction phase.

Winemakers’ Federation of Australia figures show local wine exports fell 2% in volume in 2011-2012 and 5% in value during the same time period.

The volume and value loss of the Australian wine export market were primarily the result of a strong local currency combined with other factors, Winemakers’ Federation of Australia chief executive Paul Evans told SmartCompany.

“We have supply of grapes and wines which are not matched to global and local demand at profitable price points and that has been a feature of our industry for some time,” Evans says.

“Particularly since we’ve lost a lot of ground in our export markets [due to the] increased dollar, around 2007-2008.”