Glanbia Co-operative Society have launched a new €100 million loan scheme for dairy farmers. The fund will offer loans where the repayments will change according to milk prices.

The scheme, which is described as the first of its kind, offers farmers a non-traditional type of loan between €25,000 and €300,000.

Simon Coveney, Minister for Agriculture said the scheme would “put it up to the banks” while helping suppliers cope with price volatility.

The loans will have ‘flex triggers’, meaning that if the price of milk is high repayments will be higher, but when the price of milk is low farmers will repay less. The fund will be available from May this year.

Irish Creamery Milk Supplier Association Dairy Committee Chairperson Gerald Quain said the scheme’s connection to milk prices would give suppliers a degree of latitude.