The AWPFC has calculated that Australian shorn wool production in 2009/10 is expected to be 330 million kilograms greasy, the same as its forecast in July.

But it's still a 32mkg drop from the 2008/09 totals.

Keeping in line with the July forecast, WA is still expected to have the highest wool production drop in Australia, with a 15pc deficit to 72mkg forecast by the AWPFC.

But farmers such as Peter Glatz may contribute to a turnaround in the wool production drop. Mr Glatz has bought in 1000 Merino ewes to increase his family's wool and meat producing operation this year.

"When people went completely over to cropping we wanted to keep producing our wool," Mr Glatz said.

"We had to buy in a few Merinos for this year, but within a couple more years, we'll be breeding our own to get a self-replacing flock."

Mr Glatz, originally from Goomalling, runs the Glatz family's grazing properties in Toodyay and Moore River from Perth, while his sons take care of the Goomalling property.

He has a total of 6000 sheep, predominantly Dohnes, spread over his properties.

Mr Glatz is enthusiastic about the wool market.

"It's improved a bit now, it's still worth being in wool, that's why I've always stuck with the wool factor," he said.

"I can't see other farmers coming back to wool very quickly so I think the prices will improve."

Mr Glatz has no plans to cut the size of his Dohne Merino flock because of the good meat prices.

"We are where we like to be with our farming," he said.

"I think people are always going to want wool."

AWPFC chairman Russell Pattinson said the main issue was still national sheep numbers, which have had the biggest impact on the 32mkg decline from last year.

"Key statistics, including season-to-date wool tests and wool receivals, continue to point to a fall in production of around 30mkg greasy for the year," he said.