New Zealand Secures Export Deal for Innovative Wool Particle Technology

The Wool Research Organisation of New Zealand’s (WRONZ) commercial arm, Wool Source, has secured its inaugural international export contract.

New Zealand’s strong wool industry has reached a pivotal commercial milestone, with the Government announcing the first export order for revolutionary wool particle technology. Rural Communities Minister Mark Patterson hailed the achievement as “the Holy Grail” for a sector that has long sought high-value applications for strong wool, traditionally considered lower-value compared with fine merino.

Breakthrough Export Order to Japan

The Wool Research Organisation of New Zealand’s (WRONZ) commercial arm, Wool Source, has secured its inaugural international export contract. The agreement, signed with a Japanese personal-care company, covers the supply of 8 tonnes of Wool Source’s proprietary wool particle products.

These wool-derived particles—developed through advanced processing and refinement—can be used across a wide range of industries. Their biodegradable, natural properties position them as a sustainable alternative to synthetic microbeads commonly used in cosmetics and personal care formulations.

Minister Patterson, during a visit to the company’s Christchurch facility, congratulated WRONZ and Wool Source for achieving what has become a cornerstone goal in the Government’s wider effort to revitalise the strong wool sector.

Backed by Major Government Investment

The success follows a four-and-a-half-year, $8.72 million research and commercialisation programme, co-funded by the Ministry for Primary Industries (MPI). MPI contributed $3.48 million to accelerate the development of high-value wool-based products.

The programme’s core focus was to transition ideas from laboratory research to pilot-scale production, enabling New Zealand companies to demonstrate capability to global buyers. This included the creation of:

• Wool-based powders and pigments

• Materials suitable for cosmetics, paints, inks, and functional coatings

• Prototype products aimed at capturing niche, higher-value markets

The Japanese export contract marks the first tangible commercial outcome from these efforts and provides confidence that additional international demand can be cultivated.

Lifting Returns for Sheep Farmers

The Government sees innovation as central to reversing decades of weakening returns for farmers producing strong wool. By fostering high-value applications—rather than relying on traditional commodities like carpets or upholstery—policymakers aim to reposition wool as a modern, sustainable material aligned with global environmental trends.

As part of its leadership role, the Government has already directed public agencies to incorporate wool products where appropriate. Kāinga Ora, for example, will shift entirely to wool carpets for new state housing fit-outs from 1 July 2025, further strengthening domestic demand.

Growing Economic Contribution

Wool exports were valued at $555 million in the year to June 2025, and officials believe new technology-driven products could significantly expand the sector’s economic footprint.

Minister Patterson emphasised that this export breakthrough is “a taste of the opportunities ahead” as New Zealand continues to reimagine the future of strong wool. By building commercial pathways for high-value uses, the Government hopes to deliver better farm-gate returns and support rural communities long term.