AgResearch hopes a new line of fabric will increase demand for wool and returns to sheep farmers.
The crown research institute has released four new fabrics using merino wool, including one with a unique anti-odour quality.
AgResearch's textile team leader, Dr Stewart Collie, says the fabrics have been developed over the past two years for use in commercial clothing.
He hopes that by increasing demand for wool, farmers will get a higher price for the wool that they sell.
Dr Collie says some fashion designers who sampled the merino fabric at New Zealand Fashion Week are calling for them to be produced commercially for use in their fashion collections.
He says AgResearch will look for commercial partners who can take them to market.