The focus on sheep production, as opposed to \'wool\' and \'meat\' as separate industries, provides stability of income as prices for the two products vary independently. The Sheep CRC initiative of the e-sheep technology platform provides a practical basis for individual animal management and the potential to improve both labour productivity and product quality. An analysis of prices for wool, meat and wheat indicate the importance of product quality in the sheep industry as an achievable means of improving profitability. Given the compatibility of sheep production with cropping and cattle production it is seen as important component of Australia\'s rural economy for many years to come. Future development of the sheep industry should focus on quality improvement for wool and sheep meat to distance these products from commodity markets. It is also essential to transform sheep management through genetic development and application of new technologies to significantly improve labour productivity.
