As one of the pioneers for wool in the active outdoor market, the Kiwis simply can't find enough suitable wool.

Company chief executive, John Brakenridge, says only a very small amount of 19 micron wool was being sought initially but was keen to find like minded Australian growers wanting to form longer term alliances with New Zealand Merino.

"We are looking for growers who like the idea of joining a supply chain through direct contracts that links them with retail partners. We are offering some price incentive and price security with two year contracts initially. In fact we have had a few approach us already."

New Zealand Merino preceded the establishment of The Merino Company in Australia, where growers pool wool and effectively own the product further down the processing chain in an attempt to add value at the retail end.

"Once that happens we aim to ensure the grower shares in that extra value. Our model is not about taking middlemen out as each serves a purpose; the topmaker, spinner, knitter and weaver and so on."

Mr Brakenridge says he is still developing specific prices given recent exchange rate fluctuations and initially he is only looking for about 100 tonnes of suitable Australia wool but the initiative could grow, without entering into the Australian market in any significant way.

But how does he sell Australian wool as New Zealand Merino?