In a new move for the sheep industry, fine wool growers are being offered combined contracts to supply the meat from the sheep as well.
Three year contracts have been launched in a deal arranged by the New Zealand Merino Company and Silver Fern Farms.
The companies say the wool and meat combo is a revolutionary step for primary sector collaboration.
NZ Merino chief executive John Brackenridge already gets about half of its wool on a contract system.
He says the advantages for the growers are get certainty of price and predictability.
Silver Fern Farm chief executive Keith Cooper says that being able to offer long term contracts, with built-in price increases, is a big change for the meat industry.
He says the benefits flow both ways, as it gives the company confidence in security of supply.
