Various defamation cases are being proposed, the latest against Australian Wool Growers Association (AWGA) president Martin Oppenheimer after the New England woolgrower made public statements questioning Mr McLachlan’s private interest in the breech clip technology being developed by Australian Wool Innovation.

The case stems from an AWGA media statement made in early March in which Mr Oppenheimer stated; "AWI has persisted with McLachlan’s 'pet project' mulesing clips, which despite technical and animal welfare issues, have received millions in funding. McLachlan admitted at the 2007 AWI Annual General Meeting that the clips had problems."

Mr Oppenheimer then speculated that the reasons behind AWI fighting pain relief, yet supporting mulesing clips was political and noted that Ian McLachlan and fellow AWI Director Chris Abell were "named as inventors on the patent register for the clips."

"This conflict of interest cannot stand and may have a serious effect on our international wool trade," Mr Oppenheimer said in the statement.

It is unsure whether the legal action against Mr Oppenheimer will be funded by Mr McLachlan or by AWI.

"If grower levies are being used to fund this action it is a breech of the Federal Government statutory funding agreement and I can tell you the Federal Minister agrees with me," Mr Oppenheimer said.

He is currently seeking legal advice regarding the proposed legal action.

"Mr McLachlan can do what he likes, unfortunately this action won’t sell any more wool nor increase the price. I have been inundated with calls of support. It is amazing the depth of feeling against Mr McLachlan in this industry," he added.

AWI stated this week that it had no comment to make on any private actions.

It is understood the latest defamation case is not the only legal action initiated by Mr McLachlan this year.

Both the ABC and the Swedish television program "Kalla Fakta" are in the book after allegedly misrepresenting the facts when suggesting AWI had "bribed" someone from the Swedish current affairs program.

ABC Rural national head Leigh Radford confirmed lawyers acting for Ian McLachlan had written to the ABC on his behalf and lawyers acting for AWI had also written to the ABC on its behalf but there was no case as yet.

AWI spent over seven million dollars on legal fees and public relations expertise when battling the People for the Ethical Treatment of Animals (PETA) over the issue of mulesing.

Ian McLachlan led the way, personally handing PETA co-founder Ingrid Newkirk a legal challenge during the filming of a 60 Minutes story in 2004.