Lanolin extraction update. Answering your questions. 'Farmers traditionally extracted lanolin from the dirty grease on wool by immersing fleeces in a vat of water and bringing it to the boil. The hot water melted the wax. As the water cooled, the wax rose to the surface where it could be skimmed off and stored for use. A single fleece could yield up to a quarter of a litre of the waxy liquid. It is thought that lanolin has been used since the beginning of when humans started domesticating sheep.