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@Jacqui
actually tim, your wrong. Finisterre has re-kindled a breeding programme here in the uk of a specific merino sheep that has extrafine wool. They financed the land and the breeding programme and pay a lovely woman to run it for them. They are one of the companies I am looking at for speaking to young designers at PRET2011.
Their goal is to be completely accountable for their production and get it all inside the EU - with a veiw to making it all UK I believe.