Primary Industry Minister Katrina Hodgkinson is asking farmers to comment on an industry review.
The Department of Primary Industries commissioned the review in light of concern about the continued viability of the NSW wool industry.
It aimed to identify future opportunities and challenges for woolgrowers throughout the state.
The review also examined a range of key industry parameters - including supply and demand, flock demographics, producer age profiles, productivity and profitability levels.
Key industry influences such as animal health and welfare, climate variability, conservation and environmental attitudes, the carbon economy and predation were canvassed.
Ms Hodgkinson said the report identified some complacency among woolgrowers.
"Woolgrowers need to be fully conscious of where they are at the moment and where they will be in ten years.
"Consumer trend is towards casualisation, so the woolgrower needs to know which wool type will be popular in the future," Ms Hodgkinson said.
The report stated that despite popular scepticism over the profitability of woolgrowing that "there are many individual wool enterprises that are productive and profitable."
The review recognised that woolgrowing does have a future - as a technologically sophisticated part of the sheep industry.
NSW is the largest wool-producing state in Australia, and if it were a country it would be the fourth-largest supplier of raw fibre to the global textile industry.
"It is important to develop a preferred future for the NSW sheep industry, one that is owned and shared by industry, providing confidence to both current stakeholders and future investors," the report said.
NSW DPI Manager Sheep Industries, Joe Sullivan said the review is also a guide for DPI to develop future strategy to assist the wool industry.
"We recognise woolgrowers need to take responsibility for their own profitability, but if the industry addresses the key recommendations of this review, it has a good future," he said.
Mr Sullivan wants woolgrowers to consider the recommendations and the challenges facing their enterprise.
An on-line survey will be open until 31 May 2015 to take feedback.
