EBRD provides loan for Siberian processor
To avoid knock-on effect of the financial crisis the European Bank for Reconstruction and Development, (EBRD) is providing an initial seven-year loan of €10 million to help a leading Siberian meat processor.
The EBRD's long-term loan to Kuzbassky Pischekombinat, a vertically integrated pig breeding and meat processing company operating in several regions of the Russian Federation, will enable it to retire earlier short-term debts, enhance operating efficiency, improve quality of finished products and cut supplier costs. The EBRD may consider a second €10 million loan in the future.
Meat is Russia's biggest food import in terms of value after poultry products. Imports account for 30% of all the pork sold in Russia during 2007 and the share of imported beef was 46%. Brazil, Argentina and Denmark are traditionally the main meat exporters to Russia.
According to EBRD, the company's investment plan focuses on completing vertical integration by establishing its own pig farms, slaughterhouse and fodder plant, as well as building its own retail base in the form of mobile shops.
In implementing its investment plan the company has committed to comply with Russian and international environment, health, safety, and animal welfare standards for its pig and cattle farms, dairy, slaughterhouse and meat-processing facility.
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