Two farmer co-operatives have decided not to join forces.

Primary Wool and Wool Grower Holdings have been holding discussions about forming a single co-operative since last year.

Primary Wool is a partner with Elders New Zealand.

Grower Holdings is in a joint venture by Wool Partners International with PGG Wrightson.

Primary Wool chair Bay de Latour of Hawke's Bay says having competing wool co-operatives in a divided industry was upsetting many farmers.

But he says they have not been able to agree on a combined way forward.

Wool Grower Holdings chair Jeff Grant, says a tragedy the two co-operatives can’t unite  for the benefit of the struggling industry.