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Wool
Australia is the world’s largest producer of wool, producing 42 percent of the world’s greasy wool in 2004/05, nearly all of which is exported. Wool continues to be one of Australia’s most important agricultural commodities, with wool production being the second most common enterprise on Australian farms. About one third of Australia’s commercial farms produce wool as part of their enterprise. In 2004/05, this accounted for 6.7 percent of the gross value of farm production. The key wool production areas in Australia are New South Wales, followed by Western Australia, Victoria and South Australia.
Approximately 40,000 woolgrowers in Australia manage a total flock of 104 million sheep, which in 2004/05 produced approximately 525kt of wool. In 2004/05, 98 per cent (515kt) of Australia’s wool product was exported with a value of over $2.8 billion. This makes wool Australia’s fourth most valuable export behind beef, wheat and wine. China and Italy are the principal destinations for Australian wool, together taking over 60% of total wool exports, followed by Italy, India and Taiwan.
Australian wool producers have faced an increasing array of challenges in recent years, including severe drought, volatile wool prices, animal welfare concerns, strong demand for sheep meat and competition for land resources from beef cattle and cropping.