Beef + Lamb New Zealand has chosen seven entrepreneurial wool projects to receive a share of of its remaining wool levy money.
The organisation had more than $500,00 left over from money collected before farmers voted two years ago not to pay a levy on wool anymore.
Beef + Lamb says projects have been chosen that show the greatest potential to pump money back into the wool industry and farmers' pockets.
They include a project scoping out the potential for manufacturing and selling high-value woollen bedding.
Wool Equities chair Cliff Heath says as well as finding new uses for finer cross-bred wool, it would breath new life to the spinning and weaving industry.
Other projects to receive Beef + Lamb funding include a company researching the production of a super absorbent wool-based material for use in nappies, hygiene and wound-care products
The Shearing Contractors Association will also receive funding for a quality assurance programme.