A contract has been awarded to a UK organisation to handle and sell Manx wool.
Local sheep farmers will now be welcomed into British Wool's collective marketing scheme.
It means their wool will be collected, graded, marketed and sold to the international wool textile industry.
Agriculture Minister Clare Barber says this will ensure local farmers have an efficient route to market and receive a fair price for their hard work.
She adds that she hopes this will help rectify some of the frustrations and concerns the Island's farmer have experienced in recent years.
British Wool will operate two collection sites and contact farmers in due course to explain how to register.
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