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A Waikato mushroom farm which was under pressure to close for causing an odour could be granted a temporary reprieve.
NZ Mushrooms, one of the biggest employers in Morrinsville, has been under pressure for years from locals and Environment Waikato because of smells emanating from the factory. They are often likened to those from a dead animal.
The plant, which composts bulk chicken manure, hay, lime and water, was told in the Environment Court last year that it would either have to shut the factory or enclose it to stifle the odour.
Its parent company, Christchurch-based Meadow Mushrooms, said the $2 million cost of complying with conditions meant continuing the operation was no longer viable.
Environment Waikato, which laid charges against the company in the Environment Court, said it now supported a bid to extend the operation until the end of next year.
Resource use programme manager David Stagg said EW wanted to mitigate the effects the closure would have on the town.
"We have the difficult task of weighing up the conflicting circumstances in cases like this and believe our position is the right one having considered environmental, social and economic factors," he said.