The project will almost double Frew Foods' lamb production with works already underway to upgrade equipment to process more sheep at a lower cost.

Frew Foods International managing director Robert Frew said 250 workers would be required to facilitate the expansion.

Mr Frew said the company faced challenges to fill all the vacancies, including vacancies which already existed within the company.

"We've got people lined up to come in and fill some of those vacancies - we're just attracting some accommodation at the moment," he said.

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"We'll be at about 500 people by about October and then we'll start looking towards the next 250 - it's about a two to three year project to get those 250 people on site.

"We're looking everywhere for housing. We're working with employees to help them into housing. Those houses are coming up - we're getting about one to two houses a month become available."

Part of the project is installation of a cool storage room at the site to drive down storage costs and a traceability system to track livestock during any potential disease outbreak.

"There is a lot of automation going into the new cool store that we're building," Mr Frew said.

"There is a lot of automatic carton loading, scanning, stacking and truck loading systems as well.

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"It will take a lot of the manual labour of lifting out of the process and we'll be able to move product a lot quicker and control stock as well."

When the Frew family bought into the business, it employed 36 people.

"To take the business to 750 is pretty much a dream," Mr Frew said.

"I wish my father was still alive to see it. He left me with a good business that's still growing.

"To join up with Thomas Foods is fantastic. They're really big but still hold the same family values within business as we do.

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"They're willing to invest in the area. Chris Thomas reminds me of my own father so it's a very good fit for us, and for the region."

In 2020, Thomas Foods International, Australia's largest 100 per cent family-owned red meat processor, acquired a 50pc stake in the Victorian Frew group business.

TFI, which is based in Adelaide, owns meat processing plants in Tamworth and Lobethal along with the soon-to-be-rebuilt Murray Bridge plant as well as leading national domestic wholesale, foods service and export business, Holco.

Mr Frew said his vision of bringing in more workers to the region, relocating and living in the area was one driven from passion for the town.

"There hasn't been very much growth in the area in the way of the population," he said. "That's something we need to do and what we're hoping we are helping work towards."

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The new expansion will enable Frew Foods to create a wide range of new roles at the abattoir including managers, labourers, forklift drivers, drovers and maintenance workers.

The Victorian government regional development and agriculture minister Mary-Anne Thomas visited the facility on Wednesday and announced funding support for Frew Foods International.

The funding is part of the Victorian government's Regional Job Fund which will assist the company in delivering the multi-million-dollar project.

"We are proud to back Frew Foods International here in Stawell to deliver hundreds of new jobs, helping to strengthen our region with more employment opportunities," Ms Thomas said.

"This project will go a long way in supporting the region, creating new jobs and boosting the local economy."

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Northern Grampians Shire Council mayor Tony Driscoll said Council was passionate about growing opportunities in the region.

"Certainly for companies like Frews, a core business in Stawell, we will do whatever we can to support their endeavours," he said. "That could be supporting them in facilitating growing their workforce and potentially supporting housing arrangements whether that would be temporary or otherwise."

Mr Frew said work would commence almost immediately at the site with phase one, of the three phrase project, would be started in July 2022.

"Just after that starts we will start the lamb room which is all of stage one," he said. "We have to do the project in three stages so the plant doesn't shut down. Each stage is anticipated to take about 12 months once it kicks off."

Mr Frew said construction for the new project would be sourced externally.

"This project would be far beyond our capabilities," he said. "We have done some of our construction work on site ourselves but we will be outsourcing this project."

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