Siberian meat processor receives US$12.7 million loan

The European Bank for Reconstruction and Development (EBRD) is providing an initial seven-year loan of EUR10 million (US$12.7 million) to help a leading Siberian meat processor.

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 EUR10 million loan in the future.

Meat is Russia's biggest food import in terms of value after poultry products, with imports accounting for 30 percent of all the pork sold in Russia during 2007 and the share of imported beef at 46 percent.

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.