The EPA has given works approval for the operation of a new abattoir on the Lancaster-Mooroopna Rd at Gillieston.
The facility, to be developed by Meatworks Australia on a former dairy farm site, would process up to 3000 head of sheep per day.
Some neighbours have objected to the development and made submissions to the EPA.
The development was approved by the EPA last week with a long list of requirements, including the establishment of a Community Liaison Committee, a community complaints response plan, a noise management plan, which includes detailed ongoing routine noise monitoring to check compliance, as well as procedures for compliance review and an odour management and monitoring program.
The development, which could employ up to 120 full time employees, must also pass planning approval by the City of Greater Shepparton, which is expected to be considered next month.