Wool is more of a byproduct of the lamb meat industry these days, so wool and meat are inextricably entangled. I'm a sheep farmer, last couple years we threw the wool away due to lack of demand. Nobody is raising sheep just for wool.
However this is a problem with our distorted markets and not with the sheep industry, this valuable fiber is being dumped or burned while we pump out synthetic crap. It costs us more to remove it from the sheep to keep them from overheating, than we can sell it for.