Macra welcomes the launch of the Glanbia Milkflex fund which is an innovative initiative involving collaboration between Glanbia Co-Op and the Irish Strategic Investment Fund, Rabobank and Finance Ireland.
The fund will offer flexible competitively priced loans to Glanbia suppliers with loan repayments varying according to movement in milk price and seasonality.
“The €2.5m of a total fund of €100m that has been set aside for new entrants dairy farmers is important and welcomed.”
Speaking after the Glanbia launch Macra na Feirme National President Sean Finan said “I welcome the announcement of details of this very innovative Milkflex funding product from Glanbia and it’s partners. The €2.5m of a total fund of €100m that has been set aside for new entrants dairy farmers is important and welcomed. Where there is a demand from young farmers exceeding the €2.5m this demand should be catered for by the fund”
Macra na Feirme on behalf of young farmers has identified the issue of access to affordable credit as a huge issue for many months and years.
Young farmers who are starting out in the industry, in most cases dont have the required security to draw down loans, which inhibits and restricts opportunities to grow and expand their farm businesses.
Finan concluded: “This Glanbia Milkflex fund is a new model which breaks the traditional tie between land and loans but allows young farmers expand and receive funding with repayment capacity based on a sound business plan and production with more flexible repayments terms based on milk price and seasonality of supply compared to other products currently available in the market. I now call on other coops to implement similar types of initiatives.
