Wool is still quite an important product of Australian agriculture. The Australian wool industry is widely recognised as producing the finest quality Merino wool. This is largely attributable to selective breeding and a superior genetic line.
In 2001 Australian wool production accounted for 9% of world production (Australian Bureau of Statistics Data). However, it dominates the fine quality wool sector, producing 50% of the world's Merino wool. Although sheep are farmed Australia-wide, 36% of the flock is in New South Wales.
Research and development for the industry is led by Australian Wool Innovation Limited (AWI), a producer owned company. Australian wool is marketed by the Woolmark company. Both companies are held by Australian Wool Services, a company created by legislation.
The industry is export-oriented. Historically, up to 90% of Australian wool was exported. The industry has suffered from a lowering demand for natural fibres, and a decrease in wool prices worldwide.
Animal rights organisations including PETA are currently promoting a boycott of Australian, and all Merino wool, as a protest against the practice of mulesing, a procedure used to prevent the animals from becoming fly blown with maggots.[20] In 2004, due to the worldwide attention, AWI proposed to phase out the practice by the end of year 2010; this promise was retracted in 2009.