Wool merchants have reacted angrily to comments decrying their role by Wool Partners International (WPI) chairwoman Theresa Gattung.
Shaun Ryan, president of the federation of New Zealand Wool Merchants, said despite comments by Ms Gattung to the Rural Women New Zealand conference in Balclutha last week, WPI was a broker, trying to attract wool into what he called a "ticket-clipping auction system".
"The definition of a broker is being a commission seller with set charges, regardless of the sale price."
He said merchants owned the wool and had a direct interest in growing its value, because it determined their profitability.
Ms Gattung told 150 people at the conference that every time a grower sold wool to a private merchant, they were selling it "down the market," preventing the building of a brand and image that would benefit the entire industry.
She also pleaded with farmers not to give up on wool, but to unite behind a co-operative that could get the Government to release some capital to invest in the industry.
Mr Ryan said he was puzzled by the comments and asked what hope the wool industry had if it built a future around a business demanding Government funding.
"The Federation of Wool Merchants is currently jointly funding initiatives that are designed to improve the profile, consumption and value of wool.
"We will continue to bring the best conversion of this value to the farm gate," he said.