GrainCorp Oilseeds Pty Ltd has been fined more than $8,000 over a strong odour that drifted into nearby homes at Numurkah.
Environment Protection Authority Victoria (EPA) North East Regional Manager Emma Knights said the company has more work to do when it comes to controlling odour.
"EPA officers conducting an inspection were able to confirm that people living in homes nearby were directly affected by a strong cooking smell with a chemical undertone," Ms Knights said.
"Allowing the offensive odour to leave the premises and affect neighbouring properties is a breach of the conditions of the EPA licence under which the facility operates," she said.
"The cause of the problem is still under investigation, and EPA may require the company to undertake further remedial action to prevent any future problems."
The company has been fined $8,060.
"Breaches involving odour can be difficult to investigate. Any delay in reporting or a change of wind can leave us with no confirmation. A prompt report from residents in the area can help EPA officers to identify the source, the nature and strength of the odour, and the area being affected," Ms Knights said.
Members of the public can report pollution to EPA's 24 hour hotline, by calling 1300 EPA VIC (1300 372 842).
