Yeah, I wrote this last year. So sue me.

In an effort to cut down on waste products such as dyes from being dumped into our water ways, Monsanto has been working on a way to develop sheep that grow colored wool. We all know about the color variations in sheep: whites, greys, browns and of course, black, but this is much more dramatic.
By using specially-treated food pellets, much like the ones zoos and aviaries use to keep flamingos pink, Monsanto hopes to produce sheep that will grow wool in all shades of the color spectrum. In the long run, this should actually save money for mills because it eliminates the cost of dying yarn. No longer needing to check for dye lots would be an added bonus.
This research is still in its infancy, but a company spokesman says it's likely that these animals should be available as soon as 2010. Plans for printed sock sheep are also in the works, but due to the complexity of matching pattern and gauge, successful production could take longer.
The research has also been extended to alpaca and goat farmers. Pellets for rabbits are currently in production.