Glanbia Co-op increases Extended Credit Scheme Fund

Glanbia Co-operative Society (“Glanbia Co-op”) is to increase the funds allocated to its recently announced Extended Credit (EC) Scheme to €30 million and has broadened the eligibility criteria to include fodder catch crops and Beef and Sheep enterprises.

The Glanbia Co-op Extended Credit Scheme supports qualifying Members by offering interest-free deferred payment terms for the purchase of specific inputs from Glanbia Ireland.

Glanbia Group Chairman Martin Keane confirmed that the initial €20 million Extended Credit Scheme for dairy farmers announced on 13 July was over-subscribed at the application closing date of 3 August.

He said: “As a result of the very positive response and the ongoing fodder supply challenges being faced by Members, the Board of Glanbia Co-op has today decided to increase the funds allocated to the Scheme from €20 million to €30 million.”

In addition, the Board has approved the following amendments:

• Beef and Sheep farmer Members of Glanbia Co-op that are existing customers* of Glanbia Ireland can now apply to participate in the Extended Credit Scheme;
• Seed and fertiliser purchased by Co-op Members (tillage or livestock farmers) for the cultivation of Catch Crops to boost the supply of fodder for the forthcoming winter now qualify for inclusion in the Extended Credit Scheme;
• Dairy farmers that missed the original deadline for applications can now apply to participate in the EC Scheme by a closing date of 31 August.

The full terms and conditions and an application form for the Extended Credit Scheme for Beef and Sheep enterprises will be communicated to all eligible Glanbia Co-op Members in the coming days.

Technical information meetings

Glanbia last week completed a series of well-attended technical information meetings at six locations. In response to farmer demand, additional meetings will be held next week – venues will be advertised on Glanbia Connect and farmers notified.

Funding and Delivery

The funding for this EC Scheme is being provided to Glanbia Ireland by Glanbia Co-op. The Scheme will be operated by Glanbia Ireland. Any farmer interested in participating in this Scheme should contact their local Glanbia Ireland representative.

Additional Notes:

The key terms of the EC Scheme for Dairy farmers announced on 13 July were:

• Glanbia Co-op members that supply milk to Glanbia Ireland can apply to avail of interest-free deferred payment terms on qualifying purchases made from Glanbia Ireland;
• The Scheme will cover 16 July to 15 September purchases of (1) all dairy compound feeds and dairy coarse rations including eligible straights and (2) fertiliser products for grassland;
• Purchases made under the Scheme will be paid for by deduction from the supplier’s milk account in six equal instalments in July, August and September of 2019 & 2020;
• No interest will be charged by Glanbia Ireland on the deferred payments;
• Eligibility is confined to Glanbia Co-op Members in the Republic of Ireland with a valid Milk Supply Agreement with Glanbia Ireland;
• Qualifying Members will be required to sign a payment instruction committing to the deferred payment for qualifying purchases under the EC Scheme.
• Participation in this Scheme is subject to credit assessment and individual limits.

*To qualify for the Beef and Sheep Extended Credit Scheme, customers must meet the following criteria:

• Be Glanbia Co-op members;
• Have purchased a minimum of €5,000 worth of feed and or fertiliser from Glanbia Ireland over the 12 month period August 2017 to July 2018;
• Qualifying purchases for the Beef and Sheep Scheme are all feed and fertiliser purchased from Glanbia between the period 13 August to 13 October;
• For an individual farmer, the amount of available credit is set at a maximum of 20% of the applicant’s last 12 month purchases of qualifying products;
• Repayment will be made over the three months of October 2019, April 2020 and October 2020 in equal instalments;
• Sign up to a direct debit from their Bank mandating the required repayment;
• Participation in this Scheme is subject to credit assessment and individual limits.

First Published 14 August 2018