The accelerating spread of ovine Johne's disease (JD) throughout New South Wales (NSW) sheep flocks has caused considerable concern to the industry. During 1995 a JD Sheep Industry Steering Committee (JDSISC) was formed with specific objectives to take "immediate action to control the spread of JD in sheep in Australia." A Strategic Plan for control of JD in sheep in NSW is being formulated and will be submitted to the NSW Government and industry for endorsement. The Strategic Plan will give priority to procedures for reducing further spread of JD infection and includes detailed proposals for identification of infected flocks, vendor declarations, a market assurance scheme, gazettal of specific JD protected/control/residual zones and associated movement restrictions and special "slaughter only" sales for disposal of infected sheep. JD-SISC believes financial incentives for disease control will be essential to encourage all affected producers to eradicate JD from their properties, especially as some producers are not severely financially affected by the disease. It is proposed that affected producers will be offered financial assistance under a contractual agreement to implement an approved property disease eradication plan negotiated with the producer. The strategic plan includes a communication strategy. Without a full-scale disease control program, it seems likely that ovine JD will continue to spread throughout the suitable pastoral areas of south-eastern Australia which are currently populated by 50 million sheep. If uncontrolled, Johne's disease has the potential to cause a direct loss to the Australian sheep industry of at least $20 million per annum as well as considerable disruption to sheep trading within Australia and possible disruption to international trade in live sheep and sheep meat products.