In May 2016, Glanbia launched MilkFlex, a loan fund of €100m for dairy farmers who are expanding. A key feature was that it had an built-in mechanism to deal with the volatility in milk price. Glanbia has now extended the fund, which was initially designed to run for one year only, to the end of 2017. The fund was created with lending partners. It has so far received loan applications totalling €43m, and has provided loans with an average value of €100,000. Loans are available for amounts of between €25,000 and €300,000.
The loan includes triggers that adjust the repayment terms in line with movements in Glanbia Ingredients Ireland’s (GII) manufacturing milk price and seasonality.
Henry Corbally, Glanbia Co-op chair, said: “In November, almost 90% of our GII milk suppliers completed a very detailed milk planning census, with a large number expressing interest in applying for a MilkFlex Loan to support investments planned for 2017. We are very appreciative of the support of our partners – the Ireland Strategic Investment Fund, Rabobank and Finance Ireland – in agreeing to extend the Glanbia MilkFlex Fund until the end of 2017.”
What you need to know about Milkflex
Loans can be used for investment including livestock, milking infrastructure and land improvement.Loans are unsecured.The interest rate is a variable rate of 3.75% above the monthly Euribor cost of funds, which works out at 4.18% APR.The loans have a standard term of eight years but may be extended by up to a maximum of a further two years when volatility triggers are enacted. To qualify, a supplier must maintain a valid Milk Supply Agreement with GII for the term of the loan. A six-month reduction by 50% in loan repayments applies when the GII manufacturing milk price falls below 28c/l (including VAT) for three consecutive months.An increase in repayments applies when the GII manufacturing price goes above 34c/l (including VAT) for three consecutive months. Repayments will cease for six months when the GII manufacturing milk price falls to or below 26c/l (including VAT) for three consecutive months.Repayments are deducted from the supplier’s milk cheque.The profile of repayments reflects the seasonal milk supply curve, with no repayments during the low milk production months from November to February inclusive.It can be used to refinance loans as well as fund working capital.Finance Ireland manages the loan application. Farmers will require a clear business plan. Normal lending conditions apply. Read more
20 minutes with Conor Boyle, general manager, MilkFlex with Finance Ireland
Agriculture Cashflow Support Loan Scheme exhausted as Ulster Bank closes scheme
Full coverage: MilkFlex
In May 2016, Glanbia launched MilkFlex, a loan fund of €100m for dairy farmers who are expanding. A key feature was that it had an built-in mechanism to deal with the volatility in milk price. Glanbia has now extended the fund, which was initially designed to run for one year only, to the end of 2017. The fund was created with lending partners. It has so far received loan applications totalling €43m, and has provided loans with an average value of €100,000. Loans are available for amounts of between €25,000 and €300,000.
The loan includes triggers that adjust the repayment terms in line with movements in Glanbia Ingredients Ireland’s (GII) manufacturing milk price and seasonality.
Henry Corbally, Glanbia Co-op chair, said: “In November, almost 90% of our GII milk suppliers completed a very detailed milk planning census, with a large number expressing interest in applying for a MilkFlex Loan to support investments planned for 2017. We are very appreciative of the support of our partners – the Ireland Strategic Investment Fund, Rabobank and Finance Ireland – in agreeing to extend the Glanbia MilkFlex Fund until the end of 2017.”
What you need to know about Milkflex
Loans can be used for investment including livestock, milking infrastructure and land improvement.Loans are unsecured.The interest rate is a variable rate of 3.75% above the monthly Euribor cost of funds, which works out at 4.18% APR.The loans have a standard term of eight years but may be extended by up to a maximum of a further two years when volatility triggers are enacted. To qualify, a supplier must maintain a valid Milk Supply Agreement with GII for the term of the loan. A six-month reduction by 50% in loan repayments applies when the GII manufacturing milk price falls below 28c/l (including VAT) for three consecutive months.An increase in repayments applies when the GII manufacturing price goes above 34c/l (including VAT) for three consecutive months. Repayments will cease for six months when the GII manufacturing milk price falls to or below 26c/l (including VAT) for three consecutive months.Repayments are deducted from the supplier’s milk cheque.The profile of repayments reflects the seasonal milk supply curve, with no repayments during the low milk production months from November to February inclusive.It can be used to refinance loans as well as fund working capital.Finance Ireland manages the loan application. Farmers will require a clear business plan. Normal lending conditions apply. Read more
20 minutes with Conor Boyle, general manager, MilkFlex with Finance Ireland
Agriculture Cashflow Support Loan Scheme exhausted as Ulster Bank closes scheme
Full coverage: MilkFlex
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