May 31, 2013

Rainbow Chicken said it will launch Zamhatch, a broiler parent stock rearing, laying and hatching operation.

The poultry producer said the operation for the supply of day old chicks is expected to be operational over the next two to three years.

The idea to launch Zamhatch followed an agreement struck between Rainbow and Zambeef.

Rainbow will own 51% of Zamhatch while Zambeef will own 49% of the new venture.

In February this year, as part of its effort to expand into Africa, Rainbow acquired a minority stake in Zambia's Zam Chick for US$14.5 million.

Rainbow bought 49% of Zam Chick which currently manages and operates Zambeef's chicken broiler business. This includes the broiler houses, chicken abattoir and processing plant.

Zambeef is a major player in the Zambian agri-business market. It has an established track record in operating in African markets with operations in Zambia, Ghana and Nigeria.

Analysts said the acquisition was an "exciting opportunity" for both Zambeef and Rainbow as it allows them to work together in order to take the poultry industry in Zambia to a new level.

Zambeef and Rainbow are each entitled to appoint two directors to the Zam Chick board of directors, with Zambeef continuing to manage the day to day operations of Zam Chick and Rainbow providing technical assistance.