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The Rural Communities Minister believes a new wool deal will take the sector to a whole new level.

It's a significant milestone for the country's wool sector, as Wool Source confirms its first commercial export order.

The Wool Research Organisation company's signed a deal with a Japanese company, for eight tonnes of Kiwi products.

Minister Mark Patterson told Andrew Dickens its currently constrained by capacity, but it's a big step forward.

He says there's a very small laboratory and there's plans to scale it up as demand increases.

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