The strong wool that is found in large areas of New Zealand is less
popular in the market than the fine merino wool of South Islands. The
fine merino wool is used in the clothing sector..
Coarse wool prices are falling gradually for about a decade and have
not been in a position to meet the expenditure of shearing also. In the
last few months, wool prices have registered a growth and have reached
a 20 year record high. This has led the farmers to buy their own wool
and then sell it back to the industry to generate more income”