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The application rate for Milkflex loans, aimed at protecting dairy farmers against milk price volatility, has been ahead of expectations.
According to Finance Ireland and a number of co-ops, there has been significant interest in the scheme.
In a statement to the Irish Farmers Journal, a spokesperson for Finance Ireland said: “The application rate from individual farmers is running ahead of expectations and we are busy processing them now. The typical application is for about €100,000.”
Finance Ireland said most applicants to the scheme intended to use the funds for dairy-related infrastructure, working capital, some refinancing and purchase of dairy livestock.
The financial services provider is managing the scheme, with funding from the Ireland Strategic Investment Fund and Rabobank, and to date it has signed agreements with 14 co-ops.
These include Glanbia, which pioneered the scheme, Lakeland Dairies, Lisavaird, Aurivo, Arrabawn, LacPatrick, Centenary and Strathroy. This has given them access to some 8,500 dairy farmers, just under half of all dairy farmers in the country.
Uptake
According to the spokesperson, it will take some time to get a full picture of the level of uptake, but they were pleased with the progress to date.
Several co-ops held meetings in recent months to provide milk suppliers with information on the new scheme.
Co-ops deduct repayments from milk cheques, with bigger payments during the summer and none during the winter. Repayments also vary depending on milk price, rising if the price is high and dropping if it is low.
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