Australia is providing more than a million US dollars to support the Vanuatu beef industry and increase the incomes of smallholder farmers in Vanuatu.
The grant has been given to the Sarami Plantation under Australia's Enterprise Challenge Fund.
It will enable smallholder cattle farmers in the rural areas of Santos and surrounding islands to produce more cattle and sell them at significantly higher prices.
Australia's Parliamentary Secretary for International Development Assistance, Bob McMullan, says the grant will allow Sarami Plantation to pay a premium for these cattle and still make a significant profit on international markets.
Mr McMullan says the initiative is an excellent model for other Pacific Islands.
He says it should lead to a dramatic strengthening of the Vanuatu beef industry and also the livestock industries throughout the Pacific region.