Australian wool production dips as fine microns rise amid dry weather and flock shrinkage

Australian wool production continues to decline, with data from the Australian Wool Testing Authority (AWTA) revealing a broad year-on-year drop in volumes for the three months to April 2025. The AWTA’s core test volumes considered the most accurate indicator of national wool production show that only sub-17 micron categories in eastern Australia have posted gains. All other micron ranges, including broader merino and crossbred types, have seen significant decreases.

In eastern Australia, AWTA volumes dropped 14.2 per cent, with finer fleece weights contributing to a 3.6 per cent fall, indicating a 10.6 per cent reduction in wool sheep numbers. Western Australia fared worse, with sheep numbers estimated to be down by 19 per cent. The 20 micron merino category suffered the steepest decline, continuing a decades-long contraction in broader wool types. Crossbred wool production also fell, aligned with persistent dry conditions across Victoria and South Australia.

Long-term trends show wool output responding closely to rainfall patterns. The latest data highlights that after a post-drought recovery in 2020-22, lower rainfall levels have once again pressured production. Stronger sheep meat prices, outperforming wool prices, are further accelerating this decline by shifting flock structures toward non-wool breeds.

AWTA data remains the most reliable gauge of industry trends, with auction volumes capturing only 85 per cent of total production.