Conservationists and some people living nearby fear the project could increase pollution and reduce the natural habitat for protected species in the area.

This is going to be a big industry on a global scale

Tony Smith, Dragon Baits Limited

Dragon Baits Limited based in Port Talbot, south west Wales, wants to build 300 ponds to rear ragworms over a 160-acre site at Army ranges in Pendine.

But campaigners claim the area - adjacent to a site of special scientific interest - would be adversely affected by the scheme.

They fear the ponds could pollute beaches in Pendine and the estuary - affecting cockle beds in Carmarthen Bay.

International bait

The company behind the scheme has already developed an aquaculture enterprise at Baglan to supply the fishing industry with live bait.

Site works manager Tony Smith said: "The demand worldwide for our product is substantial.

Protesters say cockle beds could be affected

"This is going to be a big industry on a global scale.

"We would be keen to take advantage of the local workforce to fill the job vacancies."

Ragworms are used as bait by millions of sea anglers fishing from the shore or from small boats.

It is also a highly nutritious feed used with fish and shrimp brood stocks in aquaculture.

More worms

However, the company says their Baglan site offers limited scope for expansion.

The proposed facility at Pendine would be to rear young ragworms on a far greater scale - allowing the firm to expand into the shrimp and prawn feed sector.

Councillors on the planning committee have been recommended to approve the scheme despite objections from a number of groups.

The Royal Society for Protection of Birds (RSPB), The Countryside Council for Wales and local community councils have raised concerns over the plans.