The Primera unit of Cham Food (Israel) Ltd is setting up a poultry and egg joint venture in Wright, Iowa, USA, reports Globes Online.

The investment is expected to cost $60 million. The parties will own the venture in equal shares; Cham's investment will total $30 million.

Cham Foods operates in Israel, Turkey and the US. Its US activity is handled through Primera, a manufacturer of powdered eggs and egg products, which accounts for 66 per cent of its revenue.

The joint venture will have four million chickens and an egg breaking factory that will produce the raw materials for the plant. The Iowa Poultry Association will manage the enterprise.

Primera estimates that it can finance 70 per cent of the investment in the venture with bank loans.

Construction of the project will begin next spring and take three years.