Glanbia Ireland has partnered with the Strategic Banking Corporation of Ireland (SBCI), Finance Ireland Credit Solutions DAC and leading equipment suppliers to launch the FundEquip scheme.
The aim of the scheme is to finance the purchase of critical infrastructure required on dairy farms. It will allow dairy farmers to spread the cost of generators, feed bins, milk cooling equipment and bulk tanks over a three or five-year repayment term at a competitive interest rate.
“The extreme weather challenges of the past 12 months have highlighted the importance of investment in generators, bulk tanks, milk cooling equipment and meal bins on our farms,” Martin Keane said, Glanbia Group chairman.
“We are pleased to be able to launch this scheme which will give Glanbia Ireland milk suppliers the option of spreading the cost of these essential investments over a three or five year period.”
Key features of the Glanbia FundEquip Scheme include the provision of funds to purchase specific farm equipment, funding options of three or five years, variable interest rates of 2.5% for three years or 3.5% for five years, and repayments deducted from monthly milk receipts.
Applicants require no security but must have an appropriate credit history.
“This scheme is great news for farmers who need low-cost funding that is tailored to their specific needs,” Nick Ashmore, SBCI chief executive said
“Farmers and agri-business SMEs are big users of SBCI supports and this initiative demonstrates the SBCI's ongoing commitment to this sector, as we strive to deliver more and better funding options for farmers and agri-business SMEs to choose from."
Sean Molloy, Chief Agribusiness Growth Officer with Glanbia Ireland, said that the scheme was born from the on-going dairy expansion.
“There remains a requirement for investment in farm infrastructure on a number of farms – targeting increased efficiency, a reduction in labour requirements and ensuring that the appropriate facilities are in place to support the production of highest quality milk,” Molloy said.
“In addition, the need for milk suppliers to have access to electricity generators was highlighted dramatically during the past year with Storm Ophelia and Emma presenting a major challenge on many farms throughout the Glanbia catchment area”.
The new FundEquip scheme complements the Glanbia's MilkFlex Loan Fund, which it launched in 2016. MilkFlex offers flexible, competitively priced loans with repayments that vary according to seasonality and movements in milk price. Finance Ireland announced in May this year that it plans to roll out MilkFlex loans across Ireland.
© 2018 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click subscribe to sign up for the Checkout print edition.