After years of drought and poor returns, wool growers are finally receiving higher prices. In the 10 months from February to December, Australian wool prices have climbed 22 per cent as global demand recovers after plunging during the financial crisis.

Australian Wool Exchange senior analyst Lionel Plunkett says the price surge is even stronger in US dollar terms and the eastern market indicator is up 73 per cent, from a low of $US4.62 a kilogram to $US7.98.

The million-dollar questions remain as to whether the industry can increase flock sizes and, more importantly, overcome internal disagreements and bickering that have compromised its ability to move forward with a united vision.