Backers of the Carmarthenshire project will now apply for European Objective One aid to help them complete the £4.5m project which is expected to create up to 130 jobs.

Wales are now world leaders in this field and the development at Pendine will enhance this position

Tony Smith, Dragon Baits LTD

Conservationists had raised concerns over the environmental impact of the ragworm farm next to Pendine beach.

But local community representatives came out in support of the scheme lobbing councillors on a site visit earlier this month.

Dragon Baits LTD employ 14 people at their aquaculture enterprise in Baglan, Port Talbot.

Works manager Tony Smith said the Pendine project will make a difference to the fishing industry's supply of live bait.

"I feel the decision the Carmartheshire councillors has reached today means that we can go forward and put our worm feed on the world market.

"It will have a huge impact on aquacultural feeds.

"Wales are now world leaders in this field and the development at Pendine will enhance this position."

Start date

The company has said that they have started the application for Objective One money which provides European aid for the poorest parts of Wales.

If funding is approved managers at the firm say that work on the infrastructure could begin early next year.

The land adjoins an old weapons testing range, which employed about 800 people until the 1960s.

Huw John, from Carmarthenshire council said: "This was an excellent planning decision.

"It is a huge boost as it create more than 100 jobs in an area of high unemployment.

"It will also be meeting demands from the growing fish-farming industry."

Campaigners against the scheme claimed the area - adjacent to a site of special scientific interest (SSSI) - would be adversely affected.

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

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

Some fear the project could increase pollution and reduce the natural habitat for protected species in the area.