Three South Island merino sheep farmers who are unhappy with returns for their fine wool, have decided to control production from the farm gate to the consumer.
They have set up a company called Eko Merino, which opened its first retail shop on 1 December in Fairlie, trading under the name Mihi Merino.
General manager Mark Buckley says there's no point in growing a luxury fibre if the financial returns provide very little profit.
The store specialises in merino clothing, outdoor fashion wear,.
Mr Buckley says the company has no plans to sell its products to retail clothing chains.
The wool is processed offshore in Taiwan and India before it comes back to New Zealand.