Aviagen started breeding and hatchery operations at Coleambally in 2008.

According to ABC News, in a statement, Aviagen spokesman, Peter Hanna, said Baiada Poultry will take control of the site's breeding facilities from August, as a part of Baiada's expansion in the Riverina.

Under the new arrangements, 17 of the current 30 staff have been offered ongoing employment.

Sixteen of those have accepted.

Mr Hanna said the reason for the job cuts is because broiler breeder operations require fewer staff.

The Coleambally hatchery will be retained by Aviagen until December 2015, after which its livestock operations will cease all together locally.

Mr Hanna said affected staff have not been offered voluntary redundancies, but are invited to work at the company's new livestock breeding base which has been relocated to Goulburn.

He said Aviagen has engaged with the Australian Workers union throughout the process.

Baiada's Riverina Livestock Manager said it is an opportunity for the company to continue its expansion strategy in the Riverina over the next five years.

Graham Kirby said the region boasts huge potential for growth due to its proximity to external markets and location in the middle of the grain belt.

Mr Kirby said one of Baiada's farms near the Aviagen site will now go into full scale production in six months.

He said that will include another 10 sheds in operation, significantly increasing the supply to Griffith.

"Out near the Aviagen site we have quite a large breeding complex of which the new facilities will just be implemented and integrated into," he said.

"With taking on the Aviagen site, it enables us to convert one of our other sheds into a production shed.

"The main purpose of that is to produce fertile eggs for our hatchery, which in turn supply our local broiler farm, so it's probably somewhere in the vicinity of 15-20 per cent increase."

Mr Kirby said the decision was mutually agreed upon.

He said 17 staff have been offered ongoing employment once the site changes hands.

"As of the 1 August, Baiada Poultry will take operation of the Aviagen site.

"Of the current staff there'll be 16 people that'll be coming over with Baiada Poultry to operate that complex.

"I believe there was approximately about 30 people prior to that and I believe Aviagen have discussions the remaining staff."