New FundEquip scheme for purchase of equipment

Glanbia Ireland has partnered with the Strategic Banking Corporation of Ireland (SBCI), Finance Ireland Credit Solutions DAC and leading equipment suppliers to launch a new scheme to finance the purchase of critical infrastructure required on dairy farms.

Glanbia Ireland has partnered with Finance Ireland and a range of industry leading equipment suppliers to launch an innovative new scheme to finance the purchase of critical infrastructure required on dairy farms. Finance Ireland will source funds for the initiative from the Strategic Banking Corporation of Ireland (SBCI).

The new Glanbia Ireland FundEquip scheme 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 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;
• Repayments deducted from monthly milk receipts;
• Applicants require no security but must have an appropriate credit history.

Martin Keane, Glanbia Group chairman said:“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. 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.”

Billy Kane, Chief Executive of Finance Ireland said: “We are delighted to work with Glanbia on the one hand and SBCI on the other to bring innovative financial solutions to Irish farmers. We have a strong commitment to the agriculture sector and have pioneered the rollout of Milkflex and Milkflex II for dairy farmers. We see this initiative as a further demonstration of our confidence in the future of Irish agriculture.”

Nick Ashmore, SBCI Chief Executive said: "This scheme is great news for farmers who need low-cost funding that is tailored to their specific needs. 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, explained the background to the development of the new FundEquip scheme:

“As a result of 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. 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 Glanbia FundEquip scheme complements the award winning MilkFlex Loan Fund, which was developed and launched by Glanbia and partners in 2016. MilkFlex offers flexible, competitively priced loans with repayments that vary according to seasonality and movements in milk price.

An information booklet on the Glanbia FundEquip scheme will be distributed to Glanbia Ireland milk suppliers in the coming days.

Background information:

Glanbia Ireland DAC is a 60:40 joint venture between Glanbia Co-operative Society Limited and Glanbia plc, the publicly quoted global nutrition company. It is the number one dairy processor in Ireland, processing 2.6 billion litres of milk and exporting dairy products to over 60 countries.

Finance Ireland Group is a diversified financial services business active in commercial mortgage lending, auto finance, leasing, and agri-finance. It is a privately owned business with a significant minority investment by major Irish and international institutional investors. The specialist lender, which was established in 2002 is headquartered in Ballsbridge Dublin 4 and currently employs 100 people

The Strategic Banking Corporation of Ireland (SBCI) is a strategic Small and Medium Enterprise (SME) funding company, whose goal is to ensure access to flexible funding for Irish SMEs. A core objective of the SBCI is to generate competition and choice for SMEs seeking finance in the Irish market.

Finance Ireland Ltd is a privately owned financial services Group, with businesses that specialise in Motor Finance, Asset Finance & Leasing, Commercial Mortgages and Agri Finance.

First Published 12 September 2018