Business
Establishment of Hatchery Joint Operations
Establishment of Hatchery Joint Operations.
About this update from Zambeef Products Plc
[{"type":"text","content":"\n \nRNS Number : 8331F Zambeef Products PLC 30 May 2013 \n \n\n\n\n\n\nFor immediate release\n\n\n30 May 2013\n \n\n\n\n\n \n \nZambeef Products Plc\n(\"Zambeef\" or the \"Group\")\n \nEstablishment of Hatchery Joint Operations\n \nZambeef (AIM:ZAM), the fully integrated agri-business with operations in Zambia, Nigeria and Ghana, is pleased to announce that on 29 May 2013 the Group entered into a joint venture operations agreement (the \"JV Agreement\") and a shareholders' agreement (the \"Shareholders' Agreement\") (together, the \"Agreements\") with Rainbow Farms Investments Proprietary Limited (\"Rainbow Farms\") to establish a broiler parent stock rearing, laying and hatching operation for the supply of day old chicks, Zamhatch Limited (\"Zamhatch\" or the \"Company\") (the \"Transaction\").\n \nBackground to, and reasons for, the Transaction\nThe establishment of Zamhatch is in line with the Group's strategically integrated business model, aimed at reducing risk and earnings volatility and capturing margin throughout the value chain, with a focus on supplying higher margin products. The Board considers that managing the quality and quantity of supply of day old chicks to its broiler division will enable the Group to maximise operational performance as well as create opportunities to generate revenue from the sale of day-old chicks to third parties.\n \nThe Zamhatch business will be developed at Mpongwe Farms and will also include an on-site feed...