Sheep farmers have until tomorrow to decide whether to back a new wool co-operative.

London-based New Zealander Karen Cole is giving merino wool a designer edge and succeeding.

New Zealand wool prices surged to a 14-year high amid renewed demand for the fibre in the Middle East and Europe.

Farmers' economic confidence improved in the first months of 2010, boosted by sheep and beef prices.

Cavalier says it is seeing a gradual improvement in sales after the global economic slowdown.