The wool industry has developed chemical alternatives to the controversial practice of mulesing.
The industry is under pressure from animal rights groups and international retailers to ban the way producers traditionally combat flystrike in Australia.
Skin is sliced from the buttocks of lambs without anaesthetic to produce a scar free of wool, faecal and urine stains, and skin wrinkles.
Australian Wool Innovation (AWI) says new technologies - only identified as FST 1 and FST 2 - are painless and leave no open wound.
One is a gel that when injected forms a barrier between the sheep's skin and its flesh, eventually leading to that patch of skin contracting and an overall tightening of the breech area without an open wound.
The second chemical forms an internal suture which leads to skin being painlessly removed without an open wound.
"In both cases the area treated sufficiently enlarges the bare breech area and also removes the breech wrinkle of the merino genotypes which have been tested so far," AWI's chairman Brian van Rooyen said in a statement.
AWI is not ready to provide more information on the identity of chemicals because necessary patent processes are yet to be finalised.
New trials on the chemicals will start the end of September.
