The fat lamb industry has been gaining increasing importance in Australia during recent years. Expansion of production has been encouraged by favourable prices relative to wool, by the extended application of diversified farming methods and by the preference of our chief customer, the United Kingdom, for lamb rather than mutton. The gradual increase in the proportion of crossbreds to merinos over recent years is an indication of the rising interest being shown in fat lamb raising. The proportion of crossbred wool grown in New South Wales alone increased from 9 per cent. to 17 per cent. of the total clip during the war.