Breeding values of production traits, relative to a genetic control flock, were estimated for 40 registered Merino studs. Breeding values, expressed as a percentage deviation from the control flock, varied from -16.7 to 31.2 for body mass, -6.4 to 28.1 for clean fleece mass and -3.7 to 13.2 for fibre diameter. The results indicate that some studs differed genetically. The correlations between stud phenotypic means and estimated breeding values for production traits were very low and statistically significant only for crimps per 25 mm (0.512) and total fold score (0.424). Overall means, standard deviations and correlations for the unselected two-tooth ewe and ram progeny of the 40 studs, are presented.