Yes, Liz, they used to make all the furry native animal toys out of Kangaroo skin. I always noticed that too.

We were visiting the Aussie animal santuary East of Melbourne when Dave Van Ronk told us the story about the Koalas at the New York zoo. He said that for many years their male Koala had been quite keen to impregnate his lady-love Koala. The staff were also very keen about this possibility being as how people just adore little bitty baby Kolas clinging to Mommy Koala's backs. It would be good for publicity.
The Koalas had several tallish Eucalypts in their enclosure. Male Koala would spot his true-love sitting in the top of the tree next to him and slowly and carefully climb down his tree and up her tree. By the time he he got to the top, she would have calmly leaped the short distance into another tree-top. Whereupon he would stare across the small gap between them, give a loud, sad sigh and climb down again and up the tree she was now in. The same thing happened and went on happening all day.
Cheers, Joy