But ever-optimistic woolgrowers are hanging their hopes on a steadily-rising wool price, lower wool volumes, better genetics, and impressive lamb and mutton prices, in the belief they will lead to unprecedented demand for sheep in the next few years.

In fact, growers who have been forced by tough seasons to consolidate their flocks, but improve their genetics, are in the box seat for a big jump in demand for Merino sheep predicted by some in the coming years.

But a sustained recovery of the sheep industry would be contingent on a decent widespread break in the season, said Jemalong Wool managing director, Rowan Woods, Forbes.

Mr Woods said many farmers were moving back into sheep after disappointing years in cropping following successive failures.

“Most farmers are accepting sheep are a good option – they are less risky than cropping, provide a double income (meat and fibre), and their gross margins are generally higher than cattle or cropping,” he said.

Read more in this week's The Land.