It follows the Island Development Committee's decision to turn down an application to develop a herb processing unit at Sandpiper Vinery.

Plans involved building a packing unit and laboratory at the St Peters site.

Guernsey Horticultural Committee president Bill Robilliard is concerned big companies may now be deterred from investing in the island.

Fierce opposition

"The situation is not dire for horticulture at the moment," he said.

"But the plan for the future which the States approved last September was a five-year plan and over that period I would very much hope to see a number of investors coming forward to use these large areas of land for horticultural development."

The committee felt Healthy Direct's plans for the Sandpiper Vinery site were too big for the amount of crops that were going to be grown.

It is now up to the company to submit scaled-down plans for reconsideration.

The company's original plans for the site ignited fierce opposition from neighbours angered by the size of the proposed building.

Appropriate site

Objectors to the scheme were concerned it would be built in one of the island's protected Green Zones.

The IDC initially gave its backing to the project but its decision was overturned by the Court of Appeal.

Deputy Dave Barrett, who is not standing in the forthcoming States election, said he believed the island should support the idea of building a processing factory on an appropriate site.

"A herb production unit in Guernsey would be a very good thing on the right site.