New Zealand's wine growers may have to accept that the country's golden age of wine production is over, according to a new report.

The New Zealand Winegrowers' Annual Report 2011 says that producers in the country face tighter budgets and tougher markets, resulting in lower prices for their wines.

While this presents a difficult proposition for the country's wine growers, it may give drinkers the chance to get hold of some high quality wines, such as Cloudy Bay, at a lower price.

The report says that total sales volumes for New Zealand have reached 221 million litres in the past 12 months, representing an 11 per cent increase on the previous year.

New Zealand Winegrowers chairman Stuart Smith says that these sales figures have helped companies rid themselves of the overstock they have held since the financial crisis of 2008.

He says that this gives the country's wine industry a clean slate, but growers must face the reality of the current situation.

"We need to accept that there is no going back to the golden days before 2008. We need to take stock of the operating environment with which we are now faced," Mr Smith said.

Britain remains the top consumer of New Zealand wines, accounting for 34 per cent of the country's exports, with total sales volumes to the UK rising by 11 per cent.

Tim Burnside, associate director of Deloitte New Zealand, told Decanter.com that with such a large harvest for 2011 - 328,000 tonnes in total - growers may find themselves overstocked yet again.

He explained: "Given the record harvest for vintage 2011, well above the record 2008 harvest, we consider it likely that similar issues will present themselves again.

"This could further tarnish New Zealand's premium branding, especially with the renewed global economic concerns."