In 2007 the Government offered Parkwood Eggs at Macgregor $1 million to help it change, but the farm rejected the offer.

According to ABC News, animal welfare activists broke into the farm last week, damaging and vandalising equipment, packaging and offices.

Treasurer Andrew Barr says he will renew talks to encourage the operation's owners, Pace Farm, to change its model.

But he says he will not be offering money this time.

"I don't think it's a question of money. I think it's a question of ensuring that there is an economically viable outcome that looks at the totality of the lease that Pace Farms occupy and might present some other opportunities for economic development to occur in the area," he said.

Mr Barr has also rejected calls to ban battery egg production.

"I think we've seen some fairly cavalier approaches from some interest groups and some political parties in relation to this issue, and that normally comes from a bit of middle class snobbery," he said.

"What we should focus on is getting an outcome that protects the jobs and also ensures that we have a sustainable industry into the future."