By Robin Pash

THE Australian wool industry is bracing for a renewed global animal rights campaign against it after a proposed peace deal lapsed without agreement.

The main wool groups say the announcement is no surprise, but the breakaway growers who brokered the ceasefire say the industry has thrown away a chance to head off action that is hurting exports.

US-based People for the Ethical Treatment of Animals (PETA) will relaunch its campaign internationally overnight (AEST), with the group's self-imposed 45 day moratorium on targeting the Australian wool industry expiring on the weekend.

PETA said continuing opposition from the industry's major players, including Australian Wool Innovation (AWI) and Wool Producers, left it with no choice.

"That's one of the great shames about AWI and Wool Producers not getting on board with this agreement because there are a lot of farmers out there who want to do the right thing," PETA spokeswoman Paula Hough said.

"AWI and Wool Producers have the relaunch of the campaign on their shoulders."

Ms Hough said a major international clothing retailer would be targeted, but would not give details.

The proposal to get farmers to end a controversial fly control measure was reached between the breakaway Australian Wool Growers Association (AWGA) and PETA after a year-long campaign in which some US and British clothing retailers have boycotted merino wool.

PETA had agreed to end its campaign for at least a decade if the industry agreed to meet yearly reductions in mule sing and eliminate the practice by 2010.

Mule sing involves farmers cutting skin folds from sheep's' backsides to prevent them dying from infestation by fly maggots.

The AWGA claims there is support among growers for the deal, including establishing a new brand for wool sourced from non-mulesed sheep.

PETA admitted the renewed boycott campaign would hurt growers willing to support the proposed peace plan.

"It's disappointing that the broader groups are just prepared to sit behind and sulk and not recognise the marketing opportunities that are out there and growing," Ms Hough said.

The Australian Sheep and Wool Industry Task Force, a coalition formed to fight PETA which includes AWI and Wool Producers, said it was ready to take on PETA again.

"It was always a Clayton's moratorium," task force spokesman David Coombes said.

"They didn't pull down their websites which continue to criticise the Australian wool industry. So we say, what moratorium?"

The industry would continue to work directly with clothing retailers in America and Europe, informing them of their previous commitment to end mule sing by 2010 or sooner and refine mule sing to include pain relief measures.

PETA was losing momentum but the task force expected activists to target more clothing retailers with tactics including gruesome billboard pictures of mulesed sheep, Mr. Coombes said.

The AWGA, which reached the agreement with PETA after weeks of talks, was dismayed by the failure of industry leaders to back the deal as growers continued to suffer depressed market conditions.

"What a disaster," AWGA chairman Chick Olsson said.

"It's the most head in the sand leadership I've ever seen in my life of any industry.