THE City of Greater Bendigo wants to turn the region into the chook capital of Victoria.
The Northern Poultry Cluster - a partnership of the region's leading poultry and game bird businesses - injects about $300 million into the region's economy each year and has created more than 2000 jobs, according to a new council report.
The report identified a huge potential for industry growth through product innovation, diversification and the relocation of businesses from other regions.
Cr Kevin Gibbins said the poultry industry delivered enormous economic flow-on benefits across the wider region.
He said a 2005 council initiative had also provided the platform for the cluster to become a national leader in the development of the nutrient-rich fertiliser, Biochar.
Northern Poultry Cluster manager Wayne Street said a memorandum of understanding had been signed between the cluster and American company Eprida, to produce Biochar.
The production of Biochar involves burning chicken manure, which at the same time solves the problem of waste disposal. An added bonus is that the process also generates electricity, which in theory could be returned to the state's power grid.
Mr Street told a recent food cluster meeting that this region met the criteria for the large scale investment required to develop a Biochar plant.
The only problem identified was the cost of connecting to high voltage power lines to return electricity to the grid.
Since the cluster was formed two years ago it has developed a greenhouse-type bird shed that can reduce the cost of construction from $1 million to about $100,000.
The cost savings alone would encourage more farmers to diversify into poultry, the report said.
Cr Keith Reynard said central Victoria was also benefiting from soaring land prices on the Mornington Peninsula - historically the hub of the poultry industry - which were forcing smaller businesses to relocate.
He called on council to support the cluster's initiatives and consider better accommodating the industry within its strategic planning and land management policies.