By Lisa O’Donnell
Dairygold has confirmed that it has negotiated lower cost loan and credit facilities for its milk suppliers with both Bank of Ireland and AIB Bank.
The competitive loan and credit options are designed to support milk suppliers’ growth and expansion ambitions and to assist with the cash flow challenges in the dairy sector due to a lengthly period of poor dairy market returns.
The facilities, which will be available to suppliers from September 1st, 2016, will differ between the two banks but will both offer financing options at discounted variable rates as low as 4.1% for SBCI eligible loans or 4.5% for non-qualifying SBCI loans.
The credit line will also be available at less than 4% to milk suppliers.
The funding will be available for the ongoing development and expansion of farm enterprises, including land purchase, stock purchases, capital investment and working capital for farm inputs.
Dairygold chairman, James Lynch, said that the company is extremely pleased to announce the new options.
“The facilities, at very competitive rates, reflect the strong business relationship the society has with the two banks and the commitment of the society to support its milk suppliers,” he added.
Dairygold is expected to communicate with its milk suppliers over the coming weeks to advise them of further details, options available and the next steps they must take to avail of the facilities.