Wools of New Zealand has announced a 20% increase on last year's lamb's wool contract price, as wool growers face improved fortunes.
The latest price of $7.50 a kg is up 35c on the price offered at the beginning of July, and a big improvement from last season's $6.25.
WNZ shareholders had the first opportunity at the contract but it was now open to all wool growers until August 31, for lamb's wool between 28 and 31.5 microns produced in the 2015-16 season.
The volumes required were ''significant'' and the support from shareholders had been very encouraging, WNZ chairman Mark Shadbolt said.
It was a ''real and meaningful'' contract connected directly to products in the market, where demand was growing alongside the price, Mr Shadbolt said.
The contract, offered under WNZ's Laneve brand, reinforced the increasing importance of integrity products which were traceable back to farm of origin.
It also endorsed the value of the company's brand partner relationships and its marketing and technical capabilities, he said.
WNZ also named Turners and Growers global marketing manager Rosstan Mazey as its new chief executive.
Mr Mazey, who starts work next month, replaces Ross Townshend, who resigned earlier this year to pursue other interests.
Mr Mazey has also held senior marketing and innovation roles at Zespri and UK dairy food company Dairy Crest.
As a relatively new entity commercially, WNZ was ''headed in the right direction'' with a focus on adding value at both the supply and market ends, Mr Mazey said.
He believed he could contribute positively by increasing the company's focus on marketing, innovation and brand development with strategic partners.
Dave Burridge, of PGG Wrightson Wool, said there seemed to be an underlying strength in the marketplace for most types of wool and growers were getting excellent returns.
A heavy bale of crossbred wool was now verging on $1000 a bale, while 30 micron wool was exceeding 1000c (clean) for the first time in at least 25 years.
ANZ's latest Agri Focus report said the flow of wool had clearly been towards China in recent months, one of the few things for which the Chinese had been willing to pay more.
In the 2014-15 season, China imported 15% more wool and accounted for 67% of the finer end of the clip and 42% of the stronger crossbred wool.
Australian wool prices and exports to China also surged over the second quarter and much of the lift was attributed to restocking.
Chinese mills ran particularly hand to mouth for wool last year and imports were weak in the first half of 2014.
Import volumes later in 2014 failed to rectify the earlier supply shortfall, leaving wool stocks in China particularly run down heading into 2015.
China had to restock aggressively in preparation for the upcoming northern hemisphere winter season.
The peaking in auction prices during June suggested restocking had taken place.
However, tighter medium-term supply from both New Zealand and Australia was expected to remain price-supportive, especially for the finer end of the clip, the report said.
