Mid Suffolk Poultry, based in Stradbroke near Diss, had applied for permission for an expansion that would have allowed bird numbers to rise from 80,000 to 200,000.
The company had said it was reacting to a growing demand for new chicken production sites that met modern environmental standards.
But Mid Suffolk District Council has turned down the application saying that it would overstrain the existing road network in the area.
It had been projected that there could be an increase of more than 60 lorry movements on the roads in the area during regular two-week peak periods. Planners had described this increase as "unacceptable" and leading to increased road safety dangers.
A spokeswoman for Mid Suffolk District Council explained in a statement: “Following a verbal report by Suffolk County Council’s principal highway engineer, members were recommended to refuse this application for two highway-related reasons: the approval of this application would lead to an unacceptable increase in heavy goods traffic on the highway; and due to the failure to complete a Section 106 Planning Obligation, a legal document that sets out how the applicant would resolve issues and concerns."
After the decision, Mid Suffolk Poultry manager Alan Croft told local media: "We have done a lot of work on this and we were shocked. We are considering our position."