A co-operative of Nottinghamshire farmers is opposing plans to build a large composting plant next to their fresh food operation.
Bilsthorpe-based Freshgro fears that fumes from the composting plant could contain harmful substances such as e-coli bacteria or salmonella.
Freshgro said it might be forced to close with the loss of 400 jobs.
Veoila, which will run the plant, said there was no risk of contamination from the composting plant.
Veolia also said its application had met all the necessary planning regulations.
Freshgro based near Newark, grows, packs and supplies fresh vegetables to supermarkets and schools across the UK.
The county council has backed the composting plant which will go before the planning committee on 30 November.
Kevin Parker from Veolia, said: "There isn't a risk and there will be an odour management plan attached to the application which meets all the necessary regulations."
The plant is more than 250m from the fresh food operation, which is the minimum distance set in the regulations.
But Freshgro's Chairman Bill Eastwood claimed the green waste produces gases and dangerous substances like e-coli.
"Green waste does contain food waste which in turn may have e-coli and salmonella which may come onto our site.
"It defies common sense to build a composting plant right next to a fresh food factory."
Freshgro said it will oppose the factory if it is given planning permission and ask for a judicial review of the case.
He said prospective buyers would not source produce from an operation located "next to a smelly composting plant".