Marketing and sales company Wools of New Zealand has bumped up the price it's offering farmers for lambs wool.
It will pay farmers a contract price of $7.50 per kilo for 28 micron to 31.5 micron lamb's wool produced this season.
That is a 15 cent per kilo increase on the price it was offering at the beginning of July, which the farmer-owned company said reflected positive movements in the exchange rate, with a falling New Zealand dollar increasing export returns.
The improved price is also a 20 percent increase over last seasons' contract price of $6.25 per kilo.
Wools of New Zealand's chairman Mark Shadbolt said the lamb's wool contract is linked directly to products in the market and both the demand and the price had been growing annually.
He said the company was looking for significant amounts of wool.
Farmer shareholders had the first bite at the contract and it is open to other wool growers until the end of the month.