Originally this building was a stable for working horses but was converted into a shearing shed in the 1930s. The hardwood slabs are mounted on ironbark posts and the gap under the eaves provides ventilation.
Some of the famous Macarthur Merino sheep have been shorn here. When John Macarthur was in England in 1801 to face a Court Martial (which did not proceed), he promoted the colonial wool industry to the British government and returned in 1805 with a commission from Lord Camden to develop the industry in New South Wales.
John Macarthur first exported wool to England in 1808 and wool production became the mainstay of the Camden estate. While he was exiled in England from 1809 to 1817 his wife Elizabeth took control of sheep breeding. The Macarthurs were among the first to export quality wool in commercial quantities. In 1822 they exported 6,800kg of wool to England.
Wool production declined at Camden in the 1840s and the flock was moved to better sheep country on the family property at Taralga. Later part of the flock was moved to Victoria under changed ownership. There the breed was kept pure and in 1880 part of the flock was returned to Camden. All of the Merino sheep on Belgenny Farm today are descended from those animals.