The Business Association said the Saturday morning initiative followed on from the Thursday night market it held in the CBD and would "enable locals to access the wonderful abundance of fresh produce grown in our region by other locals".
But Hawke's Bay Farmers' Market chairman Mark Verry said in an email to the council there were fears the new venture would take a toll on the established Sunday market.
He said if 10 stallholders left the Sunday market, "it would severely compromise us financially".
Another concern was that stallholders would run out of produce on Saturday and then "simply not turn up" to the Sunday market.
In another email to the council, Black Barn's events manager, Francis de Jager, described the Heretaunga St East market proposal as a "further example of continued dilution of community resources by individual organisations pushing their own barrow without the thought, support or dialogue with existing successful Hasting District and Hawke's Bay event stakeholders".
But when the concerns from the other markets were raised at yesterday's council meeting, Mr Yule said trade competition issues were "not something we can consider as part of this process".