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An embattled start-up could be forced to find a new home within 28 days after facing persistent complaints that smell and insect problems at its factory in Melbourne’s west are severely affecting trading and the wellbeing of workers in the area.
Bardee – an agritech company that uses insects in its production processes and previously secured $5 million in funding – is being taken to the Victorian Civil and Administrative Tribunal by Brimbank City Council over long-term issues at its Sunshine West factory, including offensive smells and fly infestations that have affected surrounding businesses.
Craig Kelly, who works next door to Bardee at a bathroom remodelling company, compared the smell to a rubbish tip.
“You’ve got guys working in the factory on machines … who are supposed to be concentrating on what they’re doing, and they’re shooing flies out the way. It becomes a dangerous thing,” Kelly said.
Bardee, which produces products such as fertiliser and pet food, collects organic waste – including from some of Melbourne’s top restaurants – and feeds it to black soldier flies. The larvae of the flies are then sustainably processed into products.
In 2021, the company said its Sunshine West facility was home to 1 billion flies.
It’s these insects that Kelly says have frequently found their way inside his warehouse and its office, and have left the remodelling company having to invest in multiple mitigation measures, including a flyscreen for the factory door and fly zappers, both of which have been ineffective.
Kelly’s colleague, Tony Saliba, said the problems were most intense during summer.
“You can’t even walk outside … you’ve got to run to the car,” he said. “I can’t even explain. Just imagine 100 flies on you at one time.”
Kelly and Saliba approached Bardee management and complained to the Environment Protection Agency and Brimbank City Council, but say they are yet to find a solution.
Another nearby trader, Dominic Dimasi, said his issue was with the factory’s impact on public amenity, rather than the business itself.
“It’s a marvellous idea, what they’re doing. It’s magnificent. But they should be located … in a rural area,” Dimasi said.
Documents submitted to VCAT detail other complaints that were sent to Brimbank council throughout 2025, including a petition with 143 signatures.
One person described the situation as making it “almost impossible to work” and expressed concern over potential health impacts. Another said they had received complaints from visiting customers and that their business sometimes needed to close early because of the conditions.
The reports refer to a number of visits by council staff last year, with an officer noting he had to wear a mask when inspecting the warehouse on one occasion because the smell was so intolerable.
In the documents, the council officer describes “clouds of birds swarming the premises, feeding on insects” and a “rotten odour being pervasive along the street”. He said the scent was noticeable as far as 250 metres away.
The council also claims the factory does not have a correct permit for its activities – and is seeking an order that would force it to end operations and vacate the property unless a proper permit is obtained.
In documents tendered to VCAT in January, a Bardee manager denied Brimbank’s allegations that its use of the factory contravened planning permit regulations.
The statement said that due to the fast-evolving industry, it is difficult to precisely categorise the business. It also noted that the company had operated in the area with the knowledge of the council for about six years – including involvement in an online promotional campaign.
Bardee was approached directly but declined to comment.
The company secured $5 million of early-stage funding in 2021. Its fertiliser product was also later stocked at Bunnings stores.
But it has since faced a number of legal and financial issues. Bardee was forced to make staff cuts in early 2023 and subsequently struggled to pay staff redundancy costs.
Also in 2023, a 26-year-old employee died in Hosier Lane in the CBD after being crushed against a wall when getting out of a garbage truck. A WorkSafe prosecution was launched and is still before the courts.
The Supreme Court ordered the liquidation of the start-up’s registered company, Beyond Ag, in 2024 due to unpaid bills. Bardee was eventually acquired by a different company, Acacia Blu.
It has a decreased presence online and on social media, but the company’s Sunshine West facility is still operational.
Brimbank council director of city futures Kelvin Walsh said staff had visited the factory after complaints about flies and the odour, with inspectors since determining the factory is operating without the proper planning permit. The council has now applied for an enforcement order at VCAT.
“Council is seeking orders that the occupant cease accepting waste at the site, clean up and remove all existing waste … and vacate completely within 28 days, unless a planning permit is obtained for the use,” he said, adding a permit application was yet to be made.
An EPA spokesperson confirmed it had received numerous complaints from the community and had previously issued the factory with notices requiring it to reduce odour.
A VCAT hearing between Brimbank City Council and Acacia Blu is scheduled for late this month.
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