The trade group is also waging a legal battle to stop PETA's publicity campaign.
"The court case is simply an opportunity for woolgrowers to assert their legal rights to stop PETA attempting to choke their markets by intimidating retailers," AWI's chairperson, Ian McLachlan, said.
But the court case is not supported by the Australian Wool Growers' Association (AWGA), which represents the country's sheep-wool farmers. The association argues that it is better to negotiate an agreement with PETA than pursue expensive legal action.
"One has to ask at what cost to the industry [does it continue] this expensive action and what is the end result, when in reality the industry has progressed considerably towards meeting world expectation," said Chick Olsson, AWGA chairperson.
Olsson says the industry is already trying to meet the claims of animal activists. He points to a commitment to phase out mulesing by 2010, as well as investments in researching post-mulesing pain relief.
Wool Over Their Eyes?
PETA signaled a potential end to its media campaign when it signed a statement of principle last week with AWGA.
If PETA stops campaigning, the association agreed that its members should use pain killers on sheep before and after mulesing, among other steps, until the practice is phased out by 2010.
If the wool industry joins sheep farmers in supporting the agreement, PETA says it will stop its mulesing campaign and not undertake future action against the industry's animal husbandry practices for the next ten years.
In addition, "PETA will encourage retailers to give purchasing preference to wool that is branded by AWGA," the agreement stated.
But the association must now unite the whole wool industry behind the plan in order for PETA to drop its campaign permanently.
Chick Olsson, AWGA chairperson, said the agreement offers a "wonderful opportunity" for wool growers to market themselves as animal friendly.
"This presents [itself] as a marketing dream to the modern moral and impressionable consumer-driven market place," Olsson said.
"The boycott crisis has to be brought to a sensible economic conclusion. Legally antagonizing large animal-rights groups does not make any commercial sense," he added. "What modern Australian businessman or woman would want such a boycott to continue?"
But Australian Wool Innovation, the wool industry trade group, remains skeptical and said it will continue with its court action later this week.
AWI chairperson Ian McLachlan says the organization will not negotiate with PETA and is confident the court will rule the campaign must stop. "PETA has no role in determining animal welfare standards and practices in Australia," he said.
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