Why did wool become an important export for New South Wales?

Wool became a vital export for New South Wales primarily because the region was found to be exceptionally well-suited for sheep farming, allowing it to eventually replace Spain and the German states as a primary source of wool for Britain.12

The industry's growth was driven by several key factors:

• Promotional Efforts: Figures such as John Macarthur actively promoted the potential of Australian wool to English manufacturers and helped establish the industry, notably through the Australian Agricultural Company.31
• Economic Integration: As wool exports grew—leaping from nearly 5 million pounds in 1834 to 14 million pounds by 1850—the colony became more closely linked to the British industrial system, serving as a market for investment capital and manufactured goods.12
• Capital and Labor: During the 1820s, the pastoral industry attracted significant numbers of men with capital. This was further supported by a growing workforce of migrants and ex-convicts who sought opportunities in the pastoral districts.12
• Expansion: Pastoralists expanded the bounds of settlement by "squatting" on vast tracts of land, which facilitated the large-scale production necessary to sustain the export trade.12