A farmer-led initiative is looking to raise funds to buy New Zealand Wool Services International.

The New Zealand Wool Investment Company (Wool Co) is looking to raise NZ$40m (US$32.9m) to fund the acquisition, a move which it said will "reinvigorate the sector".

"We need one company and a simple transparent structure which farmers can be proud of," said Wool Co chairman Cliff Heath.

"New Zealand wool needs one strong commercial entity that can represent our product in the world market and that has an involvement at every step from the farm gate to the shop floor," he added.

The group is looking to raise $40m through an offer that will only be available to "eligible persons". A 64% stake in WSI is currently under the control of the receiver of Hubbard associated entities. Wool Co said that after a successful fundraising, it will look to takeover the rest of the business.

"Strategic wool assets, such as the wool scours owned by WSI, could easily be lost from farmer control if we don't act quickly," said Heath.

Heath called for a New Zealand wool growers to band together in support of the plan.

"New Zealand farmers have traditionally received a premium for their wool in the international market due to its quality. A unified approach from New Zealand wool growers will help ensure that the premium New Zealand wool has earned is maintained."