I know bugger all about farming and sheep, but from my limited understanding mulesing is the lesser evil and farmers would prefer not to do it if they had a reasonable alternative. There's been a fair bit in the papers about numerous boycotts because of it.

As for raising sheep in this country, well it's been done successfully for a couple of hundred years now, so I'd say that it is suited. Sheep as employees? That's a novel way to look at it...!