Onley Farms had applied to Rugby Borough Council for permission to build the new slaughterhouse that would have supported local business and farmers.
The abattoir would have had the capacity to slaughter 200 cattle and 450 sheep a week and would have created 10 jobs.
But Rugby Council turned the application down on the grounds that the greenfield location was unsuitable and that the building would dominate the rural landscape.
More than 200 letters of objection were received with 30 in favour.
The NFU had supported the plan as had the British Meat Processors Association which commented: “Over the years there has been a concentration of large scale slaughtering activity into large scale abattoirs which has led to a struggle to survive for small scale butchers, farm shops and farmers.”