One woman has claimed it is making her and her grandchildren physically sick.
Dolores O'Donnell said the stench is intolerable, and the company must do something.
"There must be some kind of machinery they can install to take the smell away," she added.
"That smell should not be here. It should be away permanently."
Ms O'Donnell said the situation happens every summer, and prevents her grandchildren from playing outside during the afternoon.
Sinn Fein councillor Paul Fleming said he "shared the frustration" of Strathfoyle residents.
"People have been campaigning against this for as far back as 15 or 20 years. We have taken a few runs at Foyle Meats in relation to this," he added.
"We have done it through meeting with them and with Derry City Council environmental officers, and still the problem continues."
A spokesperson for Foyle Meats declined to comment.
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