Britain's most prestigious livestock show is quitting its new West Country home.

The Royal Smithfield Show is to move to a new location, after making just two appearances at the Bath and West Showground in Shepton Mallet.

The Bath-based Smithfield club is not renewing its three-year agreement to use the Somerset site.

And yesterday the Bath and West Society conceded it had lost money staging December's event.

The Smithfield used to be a winter fixture at Earl's Court, but moved to a new home in the West after organisers cancelled the 2005 event, claiming interest from exhibitors and machinery manufacturers was falling off because of the cost and inconvenience of reaching the west London venue.

In 2006 the show was reborn as the Royal Smithfield Christmas Fair at Shepton Mallet, jointly organised by the Smithfield Club and the Bath and West Society.

There was no show in 2007 because of foot-and-mouth restrictions, and the second event was held early last month.

On the face of it it was a success, with 13,000 visitors attending over two days. But there were complaints from many traders about the lay-out and lack of promotion of the event, and more from exhibitors – dominated by Scottish cattle breeders – about the remoteness of the site.

At the time one of the most influential figures in the region's farming sector voiced his misgivings about Shepton Mallet's future as the home of a national show.

Richard Phelps, managing director of Somerset-based Southern Counties Fresh Foods, said massive investment was needed on the site if it was to have any serious chance of remaining a national venue.

"It was easy to get corporate contacts to come to Earls Court because of all the other attractions of London but it's entirely another matter to get them out to the middle of Somerset and a showground which appears to be miles from anywhere" he said.

"There's literally nothing else here: not even a hotel on the site where people can stay. And when you are dealing with busy customers there has to be a real reason for them to come out here.

"The facilities on the showground are adequate, but they're not amazing. The standards are just about OK. But it is very, very difficult to attract people out of the capital."

Now the Smithfield is to move to a new, more central location – probably Stoneleigh in Warwickshire, home of the summer Royal Show and the Royal Agricultural Society of England.

The decision to pull out was announced following a meeting between the two organisations on Tuesday.

But Bath and West chief executive Jane Guise sad she was 'not really upset' about the Smithfield's departure.

"We both had challenges, and both organisations feel in these difficult economic times it is too much of a financial risk for both of us to carry on" she said.

"It is not surprising we lost money and in these economic times it is irresponsible of us to take any more risks."

The Bath and West Society has already taken steps to fill the vacuum with a new Christmas Fair, scheduled to take place in early December.

Dr Guise said the event would combine Christmas shopping with an educational dimension for children. There will be no livestock competitions, but livestock owners will be invited to exhibit animals as part of the educational element.

Dr Guise said the event was something the society had had ambitions to stage for some time.

"There are other showgrounds that have wonderful events for children already and there are funds available to help stage such things. The society itself has some funds set aside.

"Having worked really hard to establish something at that time of the year we want to carry on and build on it" she said.

Meanwhile the latest stage in a 10-year project to regenerate the showground – the Bath and West's home for 40 years – comes today (Thurs) when show officials unveil details of an ambitious scheme to remodel it completely.

The society has been working on a blueprint to build modern exhibition halls, generate jobs through giving part of the site over to light industry to create local employment, set up a permanent education centre, and attract developers to build a large on-site hotel.