The Federal Government’s Export Finance and Insurance Corporation has increased its support for Russia’s cattle herd rebuilding project, with the provision of a $46 million export finance guarantee to an importer of Australian cattle.

The guarantee will be used to help the export of Australian breeding beef cattle to Bryansk Meat Co for the establishment of a fully-integrated cattle breeding and beef production facility in Russia. The aim of the project is to provide Russian consumers with beef including Black Angus, and to develop national meat production.

It follows the successful delivery of Australian cattle last year, helped by EFIC’s initial provision of a US$42.34 million export finance guarantee to Bryansk in August 2011.

Bryansk Meat Co is part of Russian agribusiness group, Miratorg Agribusiness Holdings, and is responsible for rebuilding the country’s breeding stock. Australian exporters involved in the project include Elders International and Landmark Global Exports.

“This deal underlines our support for the agribusiness industry and further supports Bryansk Meat Co’s purchase of breeding cattle from Australian suppliers,” EFIC’s regional executive director, Andrea Govaert said.

“As with our original export finance guarantee, it also helps the competitiveness of Australian cattle suppliers. Miratorg Agribusiness Holdings has indicated it is happy to continue to purchase Australian stock, and there is the possibility for further shipments in 2012-13.”

In 2009 Bryansk Meat Co launched a major project in Russia for the production of productive cattle breeds. The project based in the Bryansk region involves the building of a cattle-breeding complex, including 33 farms, to manage 250,000 head of cattle. The aim of the project is to provide Russian consumers with beef, and to develop national meat production. The project covers 200,000 hectares of land and employs more than 3000 staff. The project investment amount will be 24 billion roubles.

EFIC is providing Miratorg’s loan guarantee to international trading bank, HSBC in support of a loan from HSBC to Vnesheconombank – the Russian government-owned bank financing Bryansk Meat Co’s purchase.

An EFIC statement issued on Friday said as part of its support, the relevant Australian suppliers to Bryansk will be required to comply with Australian Quarantine, State, Territory, and Federal Government requirements including processes for the tracking of shipments by licensed exporters.

Who is EFIC?

EFIC provides tailored finance solutions to help Australian businesses overcome the financial barriers they face when expanding their export activities.

As the Australian Government’s export credit agency, it helps Australian-based businesses to win and finance export, offshore investment and onshore export-related opportunities when their bank is unable to provide all the support they need. EFIC works directly with businesses and their banks to provide loans, guarantees, bonds and insurance products which can be tailored to meet the needs of both large and small enterprises. It says it practises ‘responsible lending’ and upholds social and environmental best practice in the transactions it supports.