Victoria's Avalon Airport could become a major fresh food export hub if it wins approval for international flights.

Frank Costa, the head of Australia's biggest privately owned Fruit and vegetable business, wants to develop the facility.

Food industry newsletter FOODweek reports today that a fruit and vegetable export centre could be sited at the airport if operator Linfox was successful in bidding to establish Victoria's second international airport.

The facility would include cool rooms, warehousing and a dispatch centre.

Costa says the proposed centre would stimulate Victoria's agricultural industry and eventually include meat, seafood and poultry.

Linfox boss Lindsay Fox plans to establish Melbourne's second international airport at Avalon, which is located between Melbourne and Geelong. Observers say Costa's proposal has given the $50 million project a significant boost.

But The Age reports that the proposal is expected to further undermine Victorian government plans to move the Wholesale Fruit and Vegetable Market from Melbourne's Footscray to Epping, on the Hume Highway about 20km north of the CBD.

Developer Mirvac recently backed away from that $1 billion project amid global economic turmoil.

"Once Lindsay Fox gets flights going we will look at a substantial investment at Avalon which will open the door to export fresh produce to Asia," Costa said. "At the moment it goes on the underbelly of planes from Tullamarine, so we would need direct flights from Malaysia, Singapore and Indonesia.

"A lot of it will be grown in the area, including Werribee South, which is just a drop kick away, but we'd hope to export fruit and vegetables from all over the state."

Costa said that Werribee South producers exported broccoli and cauliflower. He added that local producers and those in northern Victoria could very easily access Avalon, where produce would be packaged and sent overseas.

"There could even be direct cargo flights," he said. "But they've got to get flights in both directions for that to happen."

Costa said five per cent of his company's produce was exported to Asian destinations including Malaysia, Indonesia, Singapore, Hong Kong and Japan.