The Warrnambool meat company at the centre of conflict of interest claims involving Premier Denis Napthine will benefit from an additional $600,000 in state government money that will see funding diverted from community projects.

After weeks of controversy over his racing interests, Dr Napthine announced on Friday, May 23, that he would sell his share in racehorse Spin the Bottle, co-owned with Colin McKenna, the head of Midfield Meat, a thriving meat business in the Premier's electorate.

Midfield Group managing director Colin McKenna (left) with Premier Denis Napthine. Credit:Damian White

On the following Monday, Warrnambool City Council, in the Premier's electorate, formally backed a deal involving the sale of Crown land to Midfield.

The deal will require the shrinking of the council's works depot to allow Midfield to diversify into dairy processing. The costs of this shrinkage far outweigh the money to be made from the sale.