WA Stud Merino Breeders Association president Brett Jones said it's a disappointment to see Ms McGahan leave AWI.

"The board can't afford to squabble so much that it makes a position like CEO untenable," he said.

PGA Meat and Livestock chairman Digby Stretch said it was disappointing to lose Brenda McGahan as CEO.

"The board is going to have to have a serious look at how it is running AWI," Mr Stretch said.

"Because if it has such a serious difference of opinion that its CEO had to resign, its issues have to be addressed very quickly, because it is playing with woolgrower funds."

WAFarmers Wool Section president Kim Henderson said that Ms McGahan impressed growers with her professionalism, openness and clear vision for the future of AWI, and was a true asset to the AWI board.

"Since her appointment to the position of chief executive, Ms McGahan has brought more co-operation, cohesiveness and optimism to the company in the eyes of shareholders and overseas partners, than anyone in her position for a very long time," Mr Henderson said.

"AWI has freely admitted that the reason for Ms McGahan's resignation was due to her frustration at the ongoing difference of opinion among members of the board.

"Ms McGahan has been doing a fantastic job as CEO, so perhaps it should be the AWI board members causing these issues and losing focus on their primary role, who should be handing in their resignation.

"Producers are fed up with the internal bickering that has plagued the AWI board over many years, which was highlighted in the three-year review released in August 2009 by Arche Consulting.

"Unless the board addresses these issues head on, WAFarmers' confidence in AWI may leave with Ms McGahan."