Zambia’s largest meat company Zambeef Products PLC will invest US$250 million to expand operations after imports from the EU were suspended over contamination concerns. Zambia stated that in July imports of beef hooves and offal from the UK and Ireland tested positive for aromatic aldehyde, a chemical used in embalming. The UK’s Department of Environment, Food & Rural Affairs has denied the allegations. Years of foreign direct investment and a strong copper market have strengthened the Zambian economy causing Zambia to be considered a middle income nation by the World Bank as of 2011. The funds which will be generated internally as well as from un-named international lending institutions will be used to build a new abattoir as well as a new hatchery that will have the capacity to produce 1million day-old chicks per week. Zambeef has expanded into Nigeria and Ghana, and with Zambia’s strong economy has increased its annual revenues 20% to $153 million last year.
To receive relevant news stories with summaries provided by GAI Research & Insight, subscribe to Global AgDevelopments, our free bi-weekly enhanced eNews service