EFIC provided a performance bond to Gold Peg International's buyer  

Victorian company Gold Peg International Pty Ltd (GoldPeg), a specialist food technology business, won a contract to supply food processing equipment and control hardware and software to a dairy cooperative in Europe.

Under the contract, GoldPeg was required to provide a performance bond for 50% of the contract value – cash that the company needed for working capital for its growing business.

Export Finance and Insurance Corporation (EFIC), the Australian Government’s export credit agency, assisted GoldPeg by issuing the bond to the buyer.

‘Exports sales are now most of our business’, said GoldPeg’s Managing Director Simon Donnelly. ‘However, many of our overseas buyers require that we provide performance bonds, which can put significant strain on our cash flow. EFIC’s bonds help us to keep our working capital for delivering on our contracts’.

GoldPeg will supply and install a specialised cooker, called a Gold Peg International Cooker Stretcher (GPiCS), for industrial production of natural mozzarella. Unlike a traditional wet cooker, which requires large quantities of water, GoldPeg’s innovative, environmentally friendly technology uses direct steam injection for continuous cooking. 

The GPiCS was specifically developed by GoldPeg for production of natural mozzarella and pasta filata varieties of cheese and was tested extensively by the Commonwealth Scientific and Research Organisation.

GoldPeg has a long relationship with EFIC: since 2002, EFIC has provided six performance bonds on behalf of the company, supporting export contracts worth $7 million.

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