Australia's largest sheep meat exporter, Roger Fletcher, says the reputation of Australia's meat export industry will be severely undermined if animals continue to be slaughtered without first being stunned.
Some halal meat processors who export to the Middle East have an exemption from stunning animals before they're killed.
Princess Alia bint Al Hussein of Jordan has written to Prime Minister Kevin Rudd, saying stunning does conform with Islamic law, and should be compulsory.
Mr Fletcher says Australia can't afford to continue to risk its animal welfare reputation.
"The whole of Australia, we're looked at as though we look after our animals, I think we would be frowned on by the Australian public and also across the world," he says.
"Here is Australia going down one track, and we've got a minor group that's affecting good welfare standards."