A WOOL switcheroo involving expensive wool bales being swapped for inferior wool is being investigated by Victoria Police.
Buyers in China discovered that the Australian exported wool was of poorer quality than expected.
Concern has been raised that the incident could damage the reputation of the Australian export industry.
So far multiple brokers have reported thefts, which have been occurring since May.
The thefts are believed to have been carried out by switching the high quality wool out of bales for cheaper wool.
Victorian Farmers Federation president, David Jochinke, said the episode is alarming.