SUMMARY The effect of natural Corynebacterium pseudotuberculosis infection on wool production and quality in sheep was examined in light of evidence that artificial C pseudotuberculosis infection causes wool production loss. A toxin ELISA was used to identify sheep that had been infected with C pseudo tuberculosis. Greasy and clean fleece weights and fibre diameter were compared in infected and uninfected sheep. C pseudotuberculosis infection caused a 3.8 to 4.8% decrease in greasy wool production and a 4.1 to 6.6% decrease in clean wool production. C pseudotuberculosis infection did not affect fibre diameter. The effects of caseous lymphadenitis (the disease caused by C pseudotuberculosis infection) cause an annual loss of about $17 million in wool production to the Australian wool industry.