Optimism breaks out in Australian wool sector
A recent Australian Wool Innovation (AWI) survey suggests that sheep farmers in Australia are optimistic about the future. Improving wool market conditions are helping restore confidence across Australia’s sheep industry, AWI said, and producers are increasingly focused on retaining stock and rebuilding flock numbers.
The country had 69 million sheep in 2025, but earlier this year estimates were that this would decline to 67.2 million this year, with further falls predicted for 2027 and 2028.
Following improved conditions, driven by widespread rainfall across southern Australia, sheep producers are increasingly looking to retain and rebuild flocks, supported by strengthening wool markets, AWI said.
In this latest survey, 37% of farmers said they intended to increase breeding ewe numbers. Only 28% said they expected to reduce the number of breeding ewes in their flocks. These figures represent a turnaround compared to earlier studies.
The survey also noted a “sharp improvement in sentiment towards the wool industry”. More than half of producers now hold a positive outlook for wool, compared to just 7% reporting a negative view.
AWI’s head of domestic operations, Scott Carmody, says the industry’s mood is on the up. “It is a great time to be in the sheep game,” he said. He explained that there had been a significant recovery in the price of wool. This was overdue, he added, and “a just reward for those who stuck with growing wool”.
Mr Carmody said the challenge now was to accelerate the rebuilding of the flock over the next few years while maintaining strong prices paid to growers.
