Struggling wool industry set for fresh government help after horror season

The struggling wool industry is set for fresh government help, after what's been described as the worst season in 50 years.

Although fine merino fibres are currently fetching record prices, some farmers are questioning their futures in the industry as prices for their coarser product is barely covering the cost of shearing.

"Disappointing would be the word from my point of view. We'd be back probably at least 30 to 35 per cent at least on our normal figures," wool farmer Gary Peddle told 1 NEWS.

The wool industry has fallen to nearly a quarter of its two billion dollar peak it reached in the late 1980s.

The downturn has forced many to change their practices or give up on wool all together.

"The price of lamb, we're seeing $7 a kilo, we're seeing like $3 a kilo for wool, the cost of production for wool is something like $4.50 to $5 a kilo, so we've got to exceed that to keep farmers interested," Mark Shadbolt from Wools of NZ said.

Winston Peters campaigned on revitalising the wool industry, wanting all government offices to have wool carpets and the new Agriculture Minister Damien O'Connor says he's committed to getting it back on track.

"The wool industry is a huge lost opportunity it has to be one of the most undervalued and under-appreciated natural resources that we have.

"It's renewable, sustainable, biodegradable, all of those things and when the world needs sustainable fibres wool's got to be one of the best," Mr O'Connor said.