A wool substitution racket is threatening to leave Aussie suppliers looking sheepish in the eyes of the biggest importer of Australian wool, China.

Expensive bales of Australian Merino wool purchased by Chinese mills is being substituted for poor quality product, The Weekly Times reports.

Detective Inspector Jamie Templeton told Ross and John buyers have discovered the deception once the low quality wool arrives.

“The wool here meets a certain standard that mills in China are looking for, it’s shipped across there and when it arrives certain parts of it are opened up and its not the wool they thought they purchased,” Detective Inspector Templeton said.

“It’s been substituted with poor quality wool.”

At least 18 180kg bales of wool worth $1800-$2160 has been replaced with cheaper wool worth around $36-$90 a bale.

Detective Inspector Templeton said between the warehouse and the docks is the “most logical chink in the chain”.

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