South African food company invests in Zambia

LUSAKA (Reuters) - South Africa's Astral Foods Ltd said it had opened a new farm in Zambia, starting with a $10 million chicken hatchery, as a first move in plans to expand to the rest of southern Africa.

Zambia, Africa's largest copper producer, is seeking to diversify its economy and has been inviting local and foreign investors to put money into its agriculture sector. Only 10 percent of its arable farmland is currently being used.

Roedolf Steenkamp, Astral managing director, said in a statement on Monday his firm planned to invest $10 million in the venture, which would be used as the springboard to the rest of the region.

"The development is another step in Astral's business plan to strategically focus expansion in a responsible and cautious manner outside the borders of South Africa," Steenkamp said.

Steenkamp said its hatchery and breeder would initially produce 120,000 day-old chicks per week.

"The hatchery and breeder farm have been established to produce and hatch up to 1 million day-old chicks per week as demand for broilers in the region increases," Steenkamp said.

Steenkamp said Zambia was strategically positioned to service the rest of the southern African region before Astral spread to other countries.