Labor's $5 million commitment to help a proposed fermentation centre of excellence get off the ground is a "vitally important" step in setting the region up for the future, the North's peak business body says.
On Wednesday, the ALP pledged to chip in for FermenTasmania's long-planned 2000 square metre factory at Legana.
Launceston Chamber of Commerce and Industry president Tim Holder said the investment would "take the good work that's been established and accelerate it".
"We'd also hope that that funding would be matched by the Liberals, as it's vitally important to the future of the city and region," he said.
"We need to ensure that the government does all that it can to help business.
"And the whole fermentation sector is an exciting area that has uncapped potential."
FermenTasmania chief executive Pip Dawson said the factory would reduce market entry barriers for start-ups and existing businesses looking to scale up.
"We are delighted to have received this financial boost as the time to act is now," she said.
"I'm very excited about the support. We see the project as having so many opportunities for Tasmania and Northern Tasmania in particular."
Northern Tasmanian Development Corporation chief executive Maree Tetlow noted that FermenTasmania had originally pitched for the Commonwealth to contribute $10 million to the project.
"But I think there is an expectation that industry will put in because it will be a $16 million facility including the equipment," Ms Tetlow said.
"And there is private sector contribution to that."
The Liberals were contacted for comment.