The wool clip in Australia is forecast to drop by 2% for the 2013/2014 season.
The chair of the Australian Wool Production Forecasting Committee Russell Pattinson says that figure equates to a drop of seven million kilograms in wool production, the ABC reports.
Mr Pattinson says every state bar Western Australia will see a drop in wool production and Queensland is the worst affected because of the adverse conditions.
He says the clip in Queensland will drop by more than 21% while production in New South Wales will see a drop of more than 4%.
Victoria, Tasmania and South Australia will see 1% to 2% drops in production while Western Australia is expected to increase its clip by almost 3%.
Mr Pattinson says most producers' primary aim was to maintain flock numbers with a slight shift to flock growth.
Despite the drop in production he says there will still be more than 77 million sheep shorn in Australia this season.