There's apparently a flock of merino sheep in New Zealand that have been raised and certified organic since 1986. We're talking multigenerational organic here. Anyway, Organic Hand Knits makes baby clothes to order from this here organic wool, including sweaters, hats, and booties. Most of it's out of 3-ply wool, but the diaper cover is made from 8-ply, for absorbency; so now when you go organic and cloth, you don't have to throw the luxury baby out with the insecticide- and petrochemical-laden bathwater. Allow 2-4 weeks for knitting & shipping. Sweaters run about $US80.
Organic Hand Knits [via treehugger, where I just harvested a whole crop of fresh links. We're having treehugger pie here at Daddy Types today.]