10 Nov 2008

Wool growers with contracts protected - NZ Merino

6:10 am on 10 November 2008

New Zealand Merino, says growers who have contracts to sell their wool will at least have some protection from the current turmoil in world financial markets that's caused a rapid drop in prices.

All wool prices have been hit to some degree, but fine wool has taken the biggest tumble.

NZ Merino commercial manager Keith Ovens says the slump's come after a very strong start to the season, with prices for some average quality wools dropping by up to 30% in the past month.

But he says prices for the better style wools are holding.

Mr Ovens says the businesses of the company's contract partners, Icebreaker, SmartWool and DTI, are all still growing.