Fine wool merino sheep grazier John Hyles of Booroomba, near Tharwa, has battled wild dogs for 40 years.
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''We estimate we'd lose 200 sheep each year to wild dogs,'' Mr Hyles said.
He said only through the persistence of contract trapper Mick Clarke were dingoes contained.
''If we didn't have a dog trapper it would be a disaster. He would catch 15 to 20 dogs a year.''
Baiting was ineffective because the dogs were well fed.
''They chase the sheep for fun. We have all tried to bait them for years. I don't think that's very successful,'' Mr Hyles said.
''They like the live kill and they eat the kidneys. They eat the best parts of the sheep and they don't need to eat baits.''
Wild dogs could finish wool and sheep meat production within 30 or 40 years, a new report warns.
Researchers believe dingoes are increasing across almost all rangeland sheep production areas.
Although small numbers have probably been there all the time, records show their distribution, number of sightings and damage to livestock enterprises are increasing.
A scientific review in this month's Australian Veterinary Journal outlines the extent of the wild dog expansion across Australia.
Ben Allen and Peter West from the Invasive Animals Co-operative Research Centre say wild dogs are not the sole cause of the contraction of sheep farming, but a major one.
Dr Allen said: ''Without substantial effort put into integrated wild dog control programs, then, at the rate the industry is presently contracting, the rangeland sheep grazing industry will likely disappear within 30 to 40 years.''
Dr Allen said a national facilitator with funding from Australian Wool Innovation and Meat and Livestock Australia, and other wild dog officers with state agencies, were helping land managers to contain wild dogs.
AWI's head of on-farm research and development Dr Jane Littlejohn said wild dogs were the single biggest factor holding back wool production.
''The pastoral zone has been home to some of Australia's largest sheep flocks but is in serious danger from wild dog attacks,'' Dr Littlejohn said.
''Almost every alpine region also faces a similar problem and this is why AWI has committed significant resources to help communities protect their flocks.''