Exploratory talks are underway on a possible merger between two farmer-owned wool bodies.
They are the Primary Wool Co-operative and the investment company Wool Equities.
Primary Wool is on a roll after announcing the biggest profit in its history and seeing a steady increase in its membership, with more than 1100 farmers now in the co-op.
Wool Equities is struggling financially. It operates the Bruce Woollen Mill at Milton in South Otago, which was rescued from closure several years ago, as well as a small weaving plant in Palmerston North.
