A merger between the Sheepmeat Council and peak wool body, WoolProducers Australia is on the table.
As the Victorian Farmers Federation continues with a motion to fund only one peak body in the future, WoolProducers vice president Brent Finlay acknowledged that WoolProducers was under considerable financial pressure to remain viable.
"If we continue the way we have been we won’t have a future," Mr Finlay said.
"One scenario is a national sheep industry body forming from the coming together of Woolproducers and Sheepmeat council."
Sheepmeat council president Kate Joseph said yesterday that a merger was "not an option at this point", but Mr Finlay questioned the future of any livestock peak body given the current financial pressures coming from state farmer bodies.
Ms Joseph moved to separate the Sheepmeat Council from Woolproducers, stipulating that having "around 50 per cent" funding from the red meat industry and separate provider company, Meat and Livestock Australia, put the body it in a healthier position.
But when pressed on a future direction for the Sheepmeat council, Ms Joseph admitted the council had not said "no" to any arrangement.
Mr Finlay said the WPA budget had been slashed when Victorian and NSW state farming bodies moved to contribute less, the Western Australian state farming bodies dissolved their investment, leaving only South Australia, Queensland and Tasmania as full financial backers.
"It is a real challenge," he said.
Mr Finlay confirmed Woolproducers had moved out of the National Farmers Federation house in Canberra in a bid to give back its discounted rental space so the NFF could rent it out at full rates.
Victorian Farmers Federation livestock president Ailsa Fox said the decision to cut back funding to just one sheep body had been motioned by the board last month, and she understood the NSW state farming body planned to follow suite with the request.
"It all relates to the fact we have to try and do more with less," the soon to be elected VFF vice president said.
"We felt fact having two organisations dealing with livestock identification, two organisations dealing with welfare code of practices and general issues of sheep were not efficient.
"My view would be one council deal with all the issues of sheep full stop, and two sub committees underneath with one dealing with wool and other with sheep."
Stud Merino president Tom Ashby said his members wanted a peak body that could speak with a strong and united voice.
"I see a lot of things are going to happen if wool industry keeps in decline, and probably going to see a merger of a lot of these companies – even our own organistion will have to look at its future down the track," Mr Ashby said.
A deadline on funding discussion has not been set by the VFF.
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