The organisers of Rotorua's two largest weekend markets say a new farmers' market will be a welcome addition to the city and won't affect their trade.

Rotorua Lakes Council announced on Thursday it would spend about $200,000 to set up and run a new Sunday farmers' market at the former City Focus site.

It will be launched in October during the annual tulip festival and, according to the council, will be different to existing markets with a focus on locally grown produce and pantry items "demonstrating the concept of manaakitanga (hospitality and sharing) with a distinctly Rotorua flavour".

The initial set-up cost of $120,000 will include construction of wooden stalls for produce display, with annual operating costs expected to be $80,000.


The council's expectation is the market would become self-funding and break even within four years as a result of revenue from stallholders.

One-off stalls will be available for community groups and it is envisaged there will be kitchen demonstrations.

The stalls will be wooden carts made locally from locally sourced timber with 20 to 30 available in the first year.

Rotary Club of Rotorua North charity market director Garry Adlam said his club's market, held on Saturdays in Kuirau Park, had a different offering than the planned farmers' market.

"We have spoken to Brigitte [Nelson, the council's projects manager] and we don't think it will have any bearing on our market at all," Mr Adlam said.

"Ours is a bit different and is on a Saturday and they are looking to run an organic type market on the Sunday.

"I think there are people interested in organic goods and produce and that's fine, it's their call really."

Mr Adlam said he was grateful for the council's support over the years and said about 80 per cent of stall holders at the council's Night Market on Thursdays had stalls at the Rotary market as well.

"The only difference is our market puts all of the money raised back into the community and we raise between $65,000 and $70,000 each year."

Liz and Gordon Davies, who have operated the Soundshell Market at the Lakefront for 28 years, said the new market would not affect their market.

Mrs Davies said the farmers' market would be good for Rotorua.

"It might bring more people into town. It won't affect us, we aren't a foodie market, and I think it would go all right."