Britain had a serious obsession with sheep for a large chunk of the 18th and 19th century, filling Scotland and Wales with them, while setting up major sheeping farming cultures in Australia and New Zealand. Meanwhile Canada has hardly any sheep. Surely regions of Canada would be quite suited to raising sheep? Nova Scotia and Newfoundland aren't that different from Scotland or Wales (Scotland alone has 6 times as many sheep as all of Canada), and the BC interior seems like it could handle them.
Is Canada too cold in winter? (The Atlantic provinces are a little colder than Scotland, but not massively.) Was US cotton just to cheap and close by that it killed the wool industry? Or was it something else?