Pure Foods, at Longford, completed its investment earlier this year, and hopes to secure government funding to build two more sheds.
Each free-range shed houses about 14,500 hens that are free to roam the shed and are allowed to go outside to a fenced, grassy area that contains shade houses and trees.
The indoor area has covered nesting boxes, a food chain that dishes out food eight times a day, and a number of perches that sit above a manure belt that is unloaded twice a week.
Pure Foods managing director Danny Jones said outdoor port holes were opened about 10am, and closed when it started to get dark.
He said laying starts about 5am when the lights go on, and continues to about 8.30am.
``Once they have done their work they can come out and play and are free to roam anywhere they like,'' he said.
Day-old chickens are flown in, mostly from Victoria, and raised in special growth sheds until 14 weeks of age when they are placed in the new sheds, and start laying about 18 weeks of age.
A computer controls lights, ventilation, temperatures, humidity, feed times, feed amounts and port hole opening times.
It can even tell producers the average amount of water each bird is drinking a day.
Pure Foods livestock manager John Satler said the system was extraordinary.
``It is very bird friendly,'' Mr Satler said.
``The birds create heat because of their body mass and, as the temperature rises, fans automatically come on to cool the shed, and as it cools down, fans are switched off.
``The manure belt keeps the place clean and the air fresh. We test for ammonia every day, and it is very low, to non-existent.''
Mr Salter said the mortality rate was low.
He said egg production had risen by 4 per cent to 98 per cent with the free range system.
``That is just proof of how well the system caters to the needs of the hens.''
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