Charles Sturt University (CSU) will discontinue large-scale wine production in Wagga Wagga and Orange, as part of its plan to expand its focus on the premium boutique wine market.

New boutique wines will be made through CSU's Experimental Winery at the National Wine and Grape Industry Centre.

CSU Executive Director of Finance Mr Paul Dowler said, "Charles Sturt University recognises and values the role the large-scale Commercial Winery has played within the university community, in the Riverina and in the Central West, as well as within the broader rural and regional NSW communities.

"Unfortunately the pressures facing the Australian wine industry as well as current uncertainty and resource pressure within the higher education sector mean large-scale commercial operations are no longer viable for the University.

"Winemaking is an important part of our heritage, reflecting our commitment to ensuring our wine science students are equipped with the latest knowledge, and practical skills, on graduation.

"The Commercial Winery is no longer needed to train students due to the growth in online study, the University's focus on industry placement for practical experience and the development of the Experimental Winery.

"This strategic decision to change our focus to premium boutique wines reflects a broader trend within the industry, and will ensure the University continues to provide our students with relevant experience, and our research, development and extension activities are focussed on a key growth segment in the Australian wine market.

"The decision also recognises increased competition in the higher education sector, coupled with ongoing uncertainty around reforms.

"A large-scale commercial wine operation is a significant undertaking, and is simply is no longer viable for the University in the current environment."

CSU students are taught and conduct research at the Experimental Winery and this will remain un-changed under the new structure.

"Producing a limited release of premium boutique wines through the Experimental Winery will build on the proud tradition of winemaking at Charles Sturt University and see the brand continue with a focus on the University's hosted events, Alumni and wine club."

In addition, the University is developing a broader focus on food and beverage innovation, with the former head of the School of Agricultural and Wine Sciences and Professor of Food Engineering John Mawson appointed to lead the food technology initiative.

Professor Mawson said, "The Experimental Winery also has the potential to diversify into production of other juice and beverage products, including cider, mead and niche spirits from craft distilling, which in turn creates opportunities for research and teaching in these areas."

Professor Mawson said student teaching and research is at the centre of the new direction.

"Charles Sturt University has a strong reputation for producing graduates in wine science, wine business and viticulture with the experience and skills sought after by the industry.

"The focus on innovative wine and food technology through the Experimental Winery will expand the opportunities for research and ensure our graduates have a competitive edge."

The University is negotiating to lease its Commercial Winery facilities and is seeking expressions of interest for leasing its commercial vineyards. At this stage, Cellar Door operations at CSU in Orange and Wagga Wagga will continue.

The National Wine and Grape Industry Centre at CSU is the only industry research centre in NSW and is an alliance between CSU, the NSW Department of Primary Industries and the NSW Wine Industry Association.