A GOLD Coast vineyard has hauled in a record grape harvest despite fierce competition and Australian Wine and Brandy Corporation claims that 90 per cent of the industry is unprofitable.

The record 12.4-tonne yield of Chambourcin has completed a bumper season for O'Reilly's Canungra Valley Vineyards, with its largest harvest yet.

In February, the harvest of Semillon grapes yielded a record 7.2 tonnes. Both harvests yielded good quality grapes of the red and white varieties.

Vineyard operations manager Arwen McGregor says ideal growing conditions and enhanced viticulture practices contributed to the good results.

"We've had good temperatures and dry conditions at the right time," he says.

"We are also seeing the results of our ongoing efforts to grow yield and maintain quality. The result is particularly impressive given that we have replanted about one-third of our Chambourcin with Verdelho.

"Last year, we only harvested 3.7 tonnes of Semillon and 10.8 tonnes of Chambourcin - despite the extra vines - and this year beats our bumper 2005 harvest of around 17 tonnes."The harvest - completed in less than three hours - was even sweeter in the wake of Australian Wine and Brandy Corporation director Michael De Palma's comments.

Mr De Palma says wine growers are consistently facing an uphill battle. He says a large number of vineyards with less than 50ha are struggling, compared with those of more than 150ha.

"The majority of our growers really can't hang in there to ride out these tough times. It's a constant battle," he says.

"There has to be another way, shape or form for them to exit the industry or to adapt. The drought has given us the opportunity to refocus our future direction as an industry. A lot of focus has now been on trying to lift the consumer to try to look at the higher prices - a bigger buffer when it comes to profitability."

Mr De Palma, who is also chairman of Murray Valley Wine Growers, warns that competition from Spain and Italy in the popular premium-range market threatens local vineyards.

"We've gone now from being the leader of the pack to be amongst the pack. The great love affair with Australian wine has tarnished a little bit.

"We've certainly punched above our weight, there's no doubt about it, but I think those good times have gone and the world market is now starting to say, 'OK, what else have you got to offer?'"

Mr De Palma says the industry has a 'very short' period to ensure profitability for vineyards and wineries across the country.

"I don't think any country that produces wine and supplies the export market can sit on its laurels too long. You'll get snaffled by someone else real quick," he says.

This year's harvest is tipped to be 1.35 million tonnes - the smallest since 2000 and down one-third on last year's total production. Exports remain strong, with records set for volume and value in the year ending January. Volume grew nine per cent to 768 million litres, while value grew two per cent to $2.85 billion. The average price declined seven per cent to $3.71 a litre.