THE stoush over funding for sheep genetics research continues to linger over Australian Wool Innovation.

The latest controversy centres on the claim AWI overstated the cost of obtaining a sheep's genetic blueprint. 

The Sheep CRC has also hit back at AWI's decision not to fund the CRC's Information Nucleus Flock 2 project.

The project was aimed at identifying sheep with superior genes for wool growth and fibre diameter, fertility and resistance to parasites and fly strike.

The Sheep CRC released a list of counter arguments to AWI's claims about the project.

Top of the list was AWI's claim that the current cost of $150 to genotype or map a sheep's DNA to identify high performers, was too expensive and needed to be around $20 to be commercially viable.

But the CRC said the cost of genotyping had fallen and would be $50 in 2013, low enough to encourage widespread use and speed up the rate of genetic improvement in flocks.

The CRC also said that AWI's claim that the Information Nucleus Flock was of more use to sheepmeat producers than wool producers was not true.

"Analysis of potential benefits from using genomic technologies consistently points to far greater benefits for the Merino sector than for specialist meat breeds," the CRC said in its statement.

Sheep CRC chief executive Prof James Rowe said they wanted to set the record straight on AWI's claims.

"The fact is INF2 stands to deliver more to the wool producers than it does to the meat side." he said.

But AWI chief executive Stuart McCullough said genetics and genomics research would continue to be a core focus at AWI.

Over the past decade AWI had committed $26.6 million to genetic and genomic research with funding to increase 50 per cent in 2012-13 to $1.13 million.