ESK KazakhExport JSC, Export Insurance Company KazakhExport JSC together with Agrarian Credit Corporation JSC (ACC) supported the Terra LLP project to increase feedlot areas from 8 thousand to 20 thousand cattle places.

Terra LLP is attracting financing for the project through Agricultural Credit Corporation JSC. Loan insurance is provided by Export Insurance Company KazakhExport JSC.

The exporter also intends to purchase additional cattle, feed harvesting equipment, and replenish working capital for feed production by the end of the year.

It is worth noting that the investment part of the project is financed within the framework of the Agroexport lending program at an annual interest rate for the acquisition of fixed assets - from 8% (GESV - from 8% per annum), for replenishment of working capital - from 11% (GESV - from 11% per annum). Working capital under the Agribusiness program at an annual interest rate of 16% (GESV - from 16% per annum), taking into account subsidized interest rates from 11% per annum (GESV - from 11% per annum).

The Agroexport program is aimed at financing investment projects with export potential, including the construction of feedlots, vegetable storage facilities, greenhouses, etc.

Thanks to the project, the Kazakh exporter will increase meat production by 15 thousand tons per year. Of these, about 6 thousand tons will be exported to the Russian Federation.

It is planned to export Kazakh beef to the Chelyabinsk, Orenburg and Sverdlovsk regions. Agreements for the supply of meat were also concluded with the agricultural consumer processing and marketing cooperative "Bulat" of the Republic of Tatarstan. Export of products will be carried out through the company “Trading House “Grain Industry” LLP, which is part of the group.

Let us remind you that in June, Export Insurance Company KazakhExport JSC and Agrarian Credit Corporation JSC signed a joint regulation on the consideration and financing of applications for feedlots with insurance protection.

In fact, to receive a loan, the borrower will only need to submit an application for financing; the issue of its insurance will be decided by KazakhExport and ACC independently.

Cooperation between KazakhExport and ACC will help increase the export potential of the beef cattle industry.

The Agrarian Credit Corporation is working to finance feedlots that have export potential to replenish working capital. Thus, as of today, applications from 16 feedlots have been accepted for the purchase of 70,200 heads of bulls for a financing amount of 13.3 billion tenge. All of the above feedlots are operated by the Corporation's branches. Of these, 7 feedlots were approved for the purchase of 42,700 heads of bulls for a financing amount of 6.7 billion tenge. There are 9 fatteners under consideration for the purchase of 27,500 head of bulls for a financing amount of 6.6 billion tenge.

“Supporting meat exports is one of the priority areas of KazakhExport. Exporting a ton of meat entails the production of several tons of feed, demand for agricultural machinery and the creation of jobs in the regions. The end result leads to economic diversification,” noted Ruslan Iskakov.