The United Wool Marketers Group will be officially launched next week and has been formed, say its backers, out of frustration at the lack of consultation by the newly created Wool Industry Network.
The group's spokesman, Nick Nicholson, said claims the industry had been consulted in the formation of the network were incorrect and a continuation of a history of growers and their organisations working in isolation from the industry trying to increase demand and prices.
"They just don't want to work with the industry."
The latest spat follows the formation of the Wool Company, the result of a study by the network, which was itself initiated by Meat and Wool New Zealand and New Zealand Trade and Enterprise.
The Wool Company has PGG Wrightson as a partner and aimed to create an international brand to promote New Zealand wool.
Mr Nicholson said his group also wanted to promote the fibre and increase demand so everyone made money, which was not the case at present.
"If these guys want to go their own way and don't want to work with the industry, then we'll do something. Doing nothing is not an issue."
Although the United Wool Marketer's Group was still to announce its plans, the approaches of the two groups did appear to differ.
Mr Nicholson said generations of consumers did not know wool's qualities and had to be re-educated.
His group also proposed working with designers and architects rather than expensive advertising in glossy magazines.
This strategy was outlined in a recent International Wool Textile Organisation report and would concentrate on promoting wool as a fibre and a brand in its own right.
"Most of the world doesn't know about wool. It's a basic educational thing and we think the brand is wool."
More detail was to be released next week.