NORTHWEST Victorian sheep farmer Bob Rollinson said he was dismayed to see Australian Wool Innovation chief executive Brenda McGahan resign.

"I thought we had things right," Mr Rollinson said.

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But Mr Rollinson, from Mysia, who is principal of the Concordia and Goolgumbla Merino studs, said that the wool industry still needed a research and development body such as AWI.

"I still believe we need an AWI," he said.

Mr Rollinson, who arguably produces some of Victoria's largest and heaviest cutting Merinos said he had "great faith" in chairman Wal Merriman and board member Roger Fletcher.

"They are successful businessmen," he said.

"We need these type of people to run the board.

However he was adamant that "if there are those that causing trouble, they have to go".