The Latrobe Council has approved the development application for the processing plant at Piping Lane, which is expected to employ about 60 people.

Tasmanian Irrigation announced the investment this morning, which is expected to produce an annual crop of 15,000 to 20,000 tonnes, all grown by North-West Coast farmers.

The new carrot industry that Sumich brings to Tasmania will use water from the Sassafras Wesley Vale Irrigation Scheme, which was completed in 2011-12 and provides 5460 megalitres of water a year to some of Tasmania's prime growing areas, according to Tasmanian Irrigation chief executive Chris Oldfield.

“Critically for Tasmanian farmers and irrigators, this will be an additional crop for the region; it does not compete with existing acreage and carrot markets in Tasmania,” Mr Oldfield said.

“Rather, it will replace carrots that Sumich grows at Lancelin in Western Australia in the challenging months of the growing season there: January to May.”

The West Australian based producer will contract out to growers west from Deloraine, eventually covering about 300 hectares to produce the target 15,000-20,000 tonnes for washing and packing at the proposed Piping Lane development.

Sumich owner Nick Tana said that the carrots will be shipped to domestic fresh vegetable markets and in later years may be exported.