Wine production ceased in the Yarra Valley in 1921, the last vintage being made at Yeringberg in that year. The reasons for the decline were changing land use requirements (dairying replaced grape growing) and a marked change in Australian wine production from fine table wine to heavier fortified wine. Declining soil fertility is also believed by some to have contributed to the economic malaise which led to the end of the industry in the Yarra Valley at that time.

While the cool climate of the Yarra Valley is clearly unsuited to the making of fortified wine, it is particularly suited to the growing of grapes for fine table wine. Using the Heat Degree Day system of measurement, Healesville has an index of 1158, marginally warmer than Dijon (Burgundy, France) at 1115, but cooler than Bordeaux (France) at 1238, and significantly cooler than Coonawarra (Australia) at 1259.