Glanbia Announces MilkFlex Fund Offering Flexible Loans To Suppliers
Glanbia Co-operative Society, the Ireland Strategic Investment Fund, Rabobank and Finance Ireland have announced the planned creation of a new €100 million Glanbia MilkFlex Fund, which will offer flexible, competitively priced loans to Glanbia milk suppliers.
One of the loan product’s key features will be its inbuilt ‘flex triggers’, which can adjust repayment terms in line with changes in Glanbia Ingredients Ireland’s manufacturing milk price, meaning that farmers will have some cash flow relief when it’s most needed.
The loans will have a standard term of eight years, but this may be extended by up to two years when volatility triggers are enacted.
Speaking at the launch, EU Commissioner for Agriculture and Rural Development, Phil Hogan commented, “This new model of funding for milk suppliers is an international first and will mitigate the investment risks for milk suppliers.
"The Glanbia MilkFlex Fund comes as a welcome addition to the Fixed Milk Price schemes offered by Glanbia. It will be a valuable tool in assisting dairy farmers to manage income volatility, which is particularly challenging for family farms across the EU."
Siobhan Talbot, Group Managing Director of Glanbia explained, "This product is designed to match the cash flow generated by a dairy farm enterprise, with no repayments during certain times of low prices and increased repayments at times of high prices.
"We are very appreciative of the support of our partners - the Ireland Strategic Investment Fund, Rabobank and Finance Ireland - in bringing the Glanbia MilkFlex Fund to market."
© 2016 - Checkout Magazine by Jenny Whelan.