Fine wool marketing company New Zealand Merino has lifted its full year profit by 21 percent to $2.3 million dollars for the past year.
A Merino sheep Photo: RNZ / Steve Wilde
NZ Merino chief executive John Brakenridge says its 536 wool growers would receive a dividend of just over $1 for the 2014/15 year, an increase of more than 20 percent on the previous year.
Mr Brakenridge said the strong performance was a reflection of the company's approach to add value to the wool to remove the boom-and-bust of commodity price cycles.
He said that had done through establishing multi-year forward contracts with active outdoor companies such as Icebreaker, which gives price stability for growers.
Mr Brackenridge said the innovation came in many areas.
"There's been development of product in the very top-end Italian market. The Italian company Raiders is producing a 'Rewoolution' brand which is using 17.5 micron wool for active outdoors."
"So the innovation from a market side is substantial."