The concerns are that the Girgarre East camel dairy would create bad smells, heavy dust clouds, loud noises and devalue neighbouring properties.
According to the planning documents, the 296 hectares on Midland Hwy, owned by Ausnutria, would house up to 900 camels over a three-stage period.
The planning documents reveal a new 60 m x 32 m shed for a camel dairy with a processing plant that would be built along with a holding yard, milk dryer and milking parlour.
A further two open-sided 135 m x 30 m sheds and a 16 m x 41 m hay shed would also be built.
The documents list plans for a "very small" spray dryer and administration buildings included on the farm.
A high fence will be installed for safety and security, and to contain the camels.
The farm would employ up to 30 people, which includes a farm manager who has already been hired.
It is the prospect of living opposite a camel farm that has angered some landholders.
Vic Grzesiak said he moved from the Yarra Valley to Girgarre East for an "easy retirement" and it was not what he had planned.
“If it goes ahead I think I would consider selling my property,” he said.
“I came here to retire along with others near me and I don't want to put up with the dust, smell and noises that it will bring.
“I feel unlike cattle dairies this is more like factory farming and Girgarre East is not an industrial area.
“I was told when I spoke with the people the product will be shipped overseas so I don't see it in Australia's best interest.”
Fellow neighbour Graeme Osborne said he shared the same sentiment but his biggest objection was the potential devaluation to his land.
“The land was previously used for cropping and cattle,” he said.
Both men told The News they were confident another five landholders had objected to the camel farm.
The planning documents said there was consultation with the public before the application was submitted to the council.
It said the consultation was done via letter drops and phone calls due to COVID-19 social distancing requirements in April this year.
The documents said the feedback was "supportive" but did mention "concerns raised" which were addressed in the report.
A representative from Ausnutria said in a statement it had taken three years of research to determine the Girgarre East location.
“The decision to bring investment to the region was based on the strong support of the dairy industry and the expertise and infrastructure in the area,” it said.
“During the process Ausnutria has provided continuing consultation with the community, particularly the neighbouring farms.
“Whilst the lockdown and ability to conduct group meetings has been limited, Australia Camel Dairy is open for discussions over the development of what we see as an exciting industry development project for the region.”
The representative said the market for camel milk was "predominantly export" but could look to "range products locally".
Although the neighbouring landholders were concerned about the number of camels on the farm, the statement said the operation plan would be to introduce between 25 and 50 camels this year.
“We would like to have 300 milking camels within two to three years,” it said.
As the application is on public notice until August 31, Greater Shepparton City Council could not comment.