Wool Services International says many growers are signing up to supply the company's Purelana brand because of the global financial crisis and depressed carpet wool prices.
The brand gives a staggered payment for growers who provide all their wool directly to the company.
Wool Services International is New Zealand's biggest wool exporter.
It by-passes the traditional auction system and supplies carpet manufacturers with the raw product.
Purelana brand manager Malcolm Ching says an increase in the number of growers signing up meant the company has had to increase its storage capacity in both the North Island and South Island by 200%.