Winemakers in South Australia are struggling under three years’ worth of oversupply after a trade dispute with China.

Industry leaders warn the lifting of tariffs will not solve the problem.

57 per cent of wine businesses in the state reported oversupply in a recent industry survey.

Three months into China’s review on wine tariffs, Australian Grape and Wine Chief Executive Lee McLean says the industry is optimistic the tariffs will soon be lifted, but he remains mindful that lifting the trade restrictions will not solve the grape glut.

“We will need to continue to explore new market opportunities at home and abroad and invest in innovation to produce products people increasingly want to drink,” he told Sky News Australia in a statement.