The Keith Smith Company, Inc., located in Hot Springs and Cedarville, Arkansas, is the largest independent producer and provider of quality hatching eggs to the broiler industry in the United States.
The third-generation family-owned business was trying to enter new international markets but did not feel secure taking on the financial risk. Exporting brings new challenges and worries, especially the fear that a buyer may not pay for goods once they are received.
The Keith Smith Company turned to EXIM for a solution. The agency’s export credit insurance gave the company the confidence needed to sell into new international markets. The policy ensures that, even if a buyer does not pay, the Keith Smith Company will be compensated up to 95 percent of the sales invoice. EXIM insurance reduced the company’s cash flow risk and allowed them to be more comfortable in competing for international sales.
Since the Keith Smith Company began using EXIM’s export credit insurance in 2009, EXIM has supported nearly $140 million in exports. The company’s top markets are Mexico and Guatemala, followed by Nicaragua, El Salvador and the Dominican Republic. As a result of its increased exports, the Keith Smith Company has added 42 jobs and increased sales by nearly 50 percent. Exports as a percentage of total sales have grown from fewer than 1 percent to 61 percent since the company began working with EXIM.