Wool Partners International is refusing to pay a levy for wool testing to the International Wool Textile Organisation (IWTO), understood to be needed to cover the costs of a recent promotion.
The chief executive of Wool Partners International, Iain Abercrombie, said it appeared the retrospective fundraising arose because wool exporters and merchants were "trying to justify their existence" by last month's hosting of 13 international architects in Christchurch.
The promotion was designed to expose the architects to crossbred wool and use the New Zealand environment to inspire their creativity, with the resulting work to be made into a book and circulated at international fairs and architectural conferences.
The project was part of the organisation's international wool promotion programme and was mostly funded by the National Council of New Zealand Wool Interests.
Mr Abercrombie said the event cost $200,000 and he was told the organisation would impose the wool levy to recover the expense, which he estimated would cost his company more than $100,000.
Mr Abercrombie said no-one was consulted about the 0.25c levy on the testing of greasy wool, and after consideration Wool Partners International (WPI) decided it was not consistent with its marketing and promotional programmes and declined to pay it.
"Our role is to help growers to receive the true value of their wool by targeted marketing to manufacturers, retailers and consumers in international markets," he said.
This type of generic promotion was not targeted and the levy proposal contained little detail about how the project benefited wool growers.
Mr Abercrombie said the levy did not appear to be mandatory.
"If people don't pay, they can't do anything about it."
WPI has a market development fee of 3% per kg on greasy wool which he said was voluntary, but paid by about 70% of growers.
Wool growers have twice in the last decade voted not to pay for generic promotion, and while WPI has refused to pay the levy, Mr Abercrombie said ultimately it would be passed on to growers through higher charges.
The board of Elders Primary Wool will meet this week and a spokesman said the issue was on the agenda.
Directors and management of IWTO and the National Council of New Zealand Wool Interests were out of the country and could not be reached for comment.