AUSTRALIA has 3.5 million more sheep than budgeted for, according to preliminary estimates from the Australian Bureau of Statistics.

Based on its latest farm census, ABS tallied the national flock as at June last year at 74.3 million, compared with its last estimate of 70.8 million.

It appears the big increase is not due to improved seasonal conditions or flock fertility.

ABS attributes the revision to results from its latest farm census, which is conducted every five years.

Estimates for the intervening years are based on farm surveys.

Most of the additional sheep were found in NSW, Victoria and South Australia, and most were lambs and wethers rather than breeding ewes.

Although ABS now puts the June 2011 closing flock at 74.3 million head, it has left its June 2010 closing numbers at 68.1 million head, 9 per cent down on the 2011 figure.

The figures have failed to persuade the Australian Wool Production Forecasting Committee to lift its clip estimates.

In fact the committee, which met before Christmas, has trimmed its latest clip forecast by 1.4 per cent to 350 million kilograms - or slightly less than two million bales.

Committee chairman Russell Pattinson said the ABS sheep count was a surprise.

"But it's the best available information and we had to go with it," Mr Pattinson said.

NSW had a June 2011 closing flock of 27 million, followed by Victoria (15.4 million), now ahead of Western Australia with 14.5 million. South Australia had 11.2 million, with Queensland at 3.7 million and Tasmania at 2.4 million.