The wool sector is contributing $6.9 million.
O'Connor said it would be fantastic to see strong wool becoming our first choice of fibre in homes, schools and businesses.
"Wool Impact is charged with making it a compelling and affordable alternative to synthetic fibres, and reversing the significant under-investment of the past three decades.
"This has resulted in poor returns for growers and others across the supply chain. Urgent action is needed."
There are so many great uses for strong wool and now is the time for consumers and businesses to make the most of the great natural fibre, he said.
"As consumers turn more towards products made with care for people and place, New Zealand can play a leading role in supplying this wonderful fibre to the world."
But O'Connor said New Zealand's renewed strong wool success would only be possible if the wider sector got behind new initiatives.
"There's no single idea or government policy to solve the wool sector's problems. We need a collaborative approach, and Wool Impact is the catalyst to make this happen.
"Around the world I want designers, procurement managers, landlords and homeowners seeing value in wool - not cost.
"And I want to see sheep farmers investing in rams for wool production. Those will be the metrics of this project's success."
- RNZ
