A free range egg farm is to be built in Hamurana, housing at least 25,000 hens and creating 20 local jobs.
New company Sancra Farms Ltd has been given resource consent approval by the Rotorua Lakes Council to build the farm on a 50ha property on Kaharoa Rd.
Twenty new jobs will be created when the farm is at full production with local contractors to be invited to express interest for the construction work.
The first phase of development will see 25,000 hens housed by July next year.
Company director Stefan Craddock said the location was ideal for the expanding industry.
"We purchased at 131 Kaharoa Rd after an extensive search in the Rotorua area. The site is within 40 minutes of a large commercial feed mill in Mount Maunganui, and allows us a central North Island location for distribution of our products," Mr Craddock said.
"Close proximity to both Ngongotaha and Rotorua also provides an available pool of labour to work on the farm. At full production the farm will create 20 jobs directly and will have additional flow-on benefits for the area. When we first visited, the land was lush and covered in clover, the hens will love the space and natural environment. The existing water rights under the Kaharoa water scheme was also an attraction in selecting the site," he said.
Initial resource consent was granted by the council in September before it was amended and passed this week. Mr Craddock said his company followed a "thorough and robust" process to gain approval. He said they were outside the Lake Rotorua catchment area and therefore exempt from the proposed new nitrogen reduction rules.
"We are happy to be given the green light and are committed to the Rotorua district for the long term with this development. The site is an ideal location, secluded with free draining soil and surrounded to the north by regenerating bush. The farm will provide employment to the local community."
He said contractor expressions of interest for the construction phase would be sought in the New Year.
Rotorua Chamber of Commerce president Darrin Walsh welcomed the news.
"Any business venture that creates new jobs for Rotorua is positively accepted. I think one of Rotorua's best features is that it's centrally located and I guess for all markets it gives easy access - it's 2.5 hours to Auckland, an hour to Hamilton and Tauranga."