Luv-a-Duck chief executive Ron Jenkins said the company would invest $13.4 million and receive a $600,000 State Government grant to expand and upgrade its Nhill processing plant.

"The expansion of the plant will give us a greater capacity to be able to process more duck," he said.

"There's going to be quite an expenditure on value-adding and upgrading the cutting up facilities."

The company's contracted duck farmers will invest $14 million to upgrade plants on their properties.

Mr Jenkins said Luv-a-Duck's upgrades would allow it to produce pre-prepared ready-to-eat meals for supermarkets.

"Value-adding is the future of duck," he said.

"We're getting ready and we're sharpening our axe to be able to manage expansion over the next five years which we hope will be the same as the past five years," Mr Jenkins said.

Luv-a-Duck has enjoyed 50 per cent growth in the five years.

Mr Jenkins said innovation and understanding the market had been key to the company's rapid growth.

The two-year expansion project will connect the business to potable water via the Wimmera Mallee Pipeline.

Money will also go towards back-up power generation and upgraded fire services infrastructure.

Equipment upgrades and the creation of a research and development facility for breeding and growing ducks are also part of the plan.

Agriculture and Food Security Minister Peter Walsh will announce the State Government's contribution to the expansion on Wednesday.

He said the government welcomed the investment by Luv-a-Duck and contracted duck growers.

"This plan will secure the 180 existing jobs at the company's facility, and create an additional 20 full-time jobs on site and 60 full-time jobs off-site with contract growers," he said.

Mr Jenkins said the company appreciated the government grant.

"It's a tangible means to try to grow strong businesses so we can populate towns that have suffered declines over the past ten years," he said.

Mr Jenkins estimated the expansion would create 40 to 50 new jobs at Luv-a-Duck over the next three years.

"We think it will be fantastic for the region in that it's creating many more jobs and a lot of opportunities for our contractors to grow our ducks," he said.

Mr Jenkins said the expansion showed the commitment of company owners Theresa Sfetkidis and Kim Shoppee-Lynch to Nhill and the Wimmera.

He said the company would remain committed to its migrant Karen employees who had provided an important part of their workforce during the company's growth.

"It's always good to get employees and the Karen people are a solid, reliable community," he said.

"We're delighted they are a part of what we do and they provide a strong and worthwhile contribution to our labour needs."