There's been widespread support for pain relief when mulesing, although one Victorian wool producer has expressed concern that it may be made mandatory.
The Victorian Farmers Federation has said Victoria was expected to be the first Australian state to make pain relief for mulesing sheep mandatory.
VFF Livestock Group president Len Vallance said he believed the new regulation would be included in the government's review of Victoria's Prevention of Cruelty to Animals Act.
"(In May) the Livestock Council made a unanimous decision to lead the industry in mandating pain relief," Mr Vallance said.
The feedback received from members, farmers and industry commentators had been extremely positive.
"We believe it's necessary for the industry to continue to have a social licence to mules," Mr Vallance said.
"We don't have a right to farm; we have a social licence to farm."
The practice involves cutting wrinkles of skin away from a sheep's breech, to stop blowflies, which are attracted to faeces.
Read more: Mulesing pain relief pressure grows
Mr Vallance said more than 90 per cent of Victorian farmers used pain relief already.
"The lambs do so much better, so it's a money-making exercise, to use pain relief," he said.
"For two dollars a head, and one and a half seconds extra, what's all the fuss about?"
WoolProducers Australia president Ed Storey said his organisation supported making pain relief mandatory.
Mr Storey said the health and welfare credentials of the Australian sheep and wool industry were outstanding.
"They are some of the best in the world," Mr Storey said.
The uptake in voluntary use of pain relief had been astonishing.
"Survey data put it at well over 80 per cent."
Mr Storey said there were now three pain relief products, on the market.
"We believe it is consistent with our policy and we believe everyone should be using analgesia," he said.
"The vast bulk of farmers are using pain relief now; it's just a question of formalising it so that we can reassure the world of our outstanding animal welfare practices.
"We support a mandatory pain relief policy."
Woolgrower Duncan Barber, Coliban Park, Elphinstone, said while he currently used pain relief, he was thinking of stopping mulesing altogether.
"It's going to become more and more of a contentious issue," Mr Barber said.
'I think we are going to bite the bullet and use chemicals (to combat flystrike), from next year," Mr Barber said.
That may raise issues of chemical residue, in the wool.
"It's a never-ending circle," he said.
"But the main reason is because of the Italian market.
"Our buyers are really pushing and offering higher premiums for unmulesed wool.
He said Coliban Park had been trying to breed a plainer bodied sheep.
"But that's not going to happen overnight."
Mr Barber said he wouldn't like to see the government become involved.
"Once the government tells farmers how to farm, that's not a good thing," he said.
Durham Ox producer Chris Harrison said he used pain relief and had seen an improvement in lamb health, recovery and survival.
"The only unfortunate thing about it is the cost per dose," Mr Harrison said.
"But relative to lamb prices that's not significant, at this time," Mr Harrison said.
"I have no issue; it's pretty easy to use."
He said using analgesia was more than a business decision.
"I'm concerned about the welfare of my stock," Mr Harrison said.
"I love my animals, as all farmers do, and I want to treat them well."
Torrumbarry prime lamb producer Steve Snelson said while he didn't mules his sheep, the procedure was essential for the industry.
"I don't have the skill set for it, but can manage around it with crutching and that sort of thing," Mr Snelson said.
"In first cross sheep I get by without it - in Merinos, it's absolutely essential.
"If that's what the industry moves towards, we have to move with the times."
He said he'd been told he missed out on a 10-15 per cent bonus, for one draft of first cross weaners offered at Bendigo several years ago, because they were not mulesed.
"I remember clearly we almost topped the sale but the agent said the reason we didn't was the tops were mulesed, and ours weren't."
He said he felt it hadn't been proven using pain relief would boost production.
"Maybe it's more perception than scientific fact they need pain relief - I don't know its totally proven as a scientific fact," Mr Snelson said.
The Victorian government has been contacted for comment.