cotton - Greenmount Press

Winners of the NSW export awards.
Corporation (EFIC), a federal government agency established to
support Australian exporting companies for funding assistance.
Initially, EFIC felt the company was still not developed enough
in cottonseed trading to satisfy its internal lending requirements.
But over a 12 to 18 month period, UWE began to gain further
experience and approached EFIC again, this time with a proven
track record of success. The government agency saw growth in
the company and undertook due diligence. EFIC was able to offer
a A$3 million guarantee to ANz to provide UWE with a revolving
working capital facility.
Under this facility, UWE was able to purchase much larger
volumes of cottonseed direct from its Australian suppliers and
sell to the Chinese market, meeting the increased demand the
company was experiencing.
EFIC provides financing solutions for Australian exports when
there is no commercial market appetite. The government-owned
agency does this mainly through guarantees to commercial
banks. Track record and financial performance are part of
its assessment: once EFIC became comfortable with its due
diligence, it was able to offer a facility to UWE.
Being an AAA-rated entity, EFIC provides a bank, in this case
ANz, additional security without needing bricks and mortar. If
there is a default due to the buyer not making payment to UWE,
then ANz can call on EFIC’s guarantee to be repaid for any losses
incurred.
EFIC’s role is not to crowd out the commercial market but
more so to promote commercial lending appetite. By having
EFIC take the risk over a number of transactions, the banks can
get comfortable that the exporter and the financing structure is
robust and a more ‘bankable’ proposition.
In the case of UWE, its bank has expressed its support and
now, after having completed a few transactions, is prepared to
take a share in the risk. This is a positive step from both UWE’s
and EFIC’s point of view because, ANz will, over time become
more comfortable with the risk and will eventually bear the
entire risk without EFIC support. EFIC has recognised the growing
need to support agriculture and has set up a specialised team to
handle all agri-financing.
UWE has demonstrated a good business model and strong
relationship with their Chinese buyers. This has enabled UWE
to grow rapidly as a business in response to identified demand
in the Asian market; a great success story in times when many
businesses have struggled with tough economic conditions. The
cottonseed market continues to pose an exciting opportunity
for UWE and the company looks forward to building on their
accolade of NSW Asian Exporter of the Year.
2013
Farm
Study
Tours
UK/Ireland (departs July 9 for 22 days)
Cast off those BAS Blues in early July and head to Old Blighty and the Emerald Isle
for three fantastic weeks. We’ll visit some of the best farming operators in the UK.
There will be plenty of time to sample all the beauty and cultural attractions of the
cities and the countryside. Visit southern and northern Ireland, England, Wales and
Scotland. This tour also coincides with the Ashes and Wimbledon.
South America (departs Aug 5 for 24 days)
From the beautiful lakes of Chile to rugged Patagonia, the Argentine Pampas,
Iguassu Falls, incredible farm developments in Brazil and Rio. Then Peru – think
Macchu Pichu. Plus options to the Amazon, Galapagos, Easter Islands etc.
Turkey/Ukraine/Poland
(departs Aug 21 for 23 days)
Turkey is one of the most fascinating countries to visit in the world with its mix of
cultures – east and west; Europe and Asia. We will visit Gallipoli, and then travel
through western and central Turkey visiting some extremely productive agricultural
regions. A quick flight across the Black Sea to the Ukraine with its huge areas
of highly fertile soil. We will drive right through to Poland visiting amazing new
agricultural developments and onto southern Germany.
Express your interest by giving us a call on
07 4659 3555 or
email travel@greenmountpress.com.au
or visit
www.greenmounttravel.com.au
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Ph: 07 4659 3555
www.greenmounttravel.com.au
E: travel@greenmountpress.com.au
Fax: 07 4638 4520