Considering the current low prices for coarse wool (fibre diameter > 30 µm), a grading up transition to a shedding flock may eliminate wool harvesting costs and increase sheep farm profit. This transition could be achieved by breeding non-shedding ewes with Wiltshire rams. A bio-economic system-dynamics model of a pastoral sheep farming enterprise was used to simulate this grading up transition from 2580 Romney ewes to a similarly-sized flock of fully shedding third or fourth cross Wiltshire–Romney ewes. The total annual sheep feed demand was constrained within a ±5% range to minimise disruption to the on-farm beef cattle enterprise. Wool harvesting expenses were eliminated after seven years of transition, and with reduced feed demand for wool growth, the post-transition shedding flocks had more ewes producing more lambs and achieving greater annual profit compared with the base Romney flock. The net present values of transition were 7% higher than the maintenance of the base Romney flock with a farmgate wool price of $2.15/kg. Results suggest that coarse wool-producing farmers should consider a grading up transition to a shedding flock, and the collection of data on the production of Wiltshire–Romney sheep in New Zealand would improve the accuracy of model predictions.