A financing scheme for dairy farmers is to be expanded nationally, with the MilkFlex loan scheme piloted in 2016 being rolled out to dairy farmers via their participating co-ops. 

The new facility will offer flexible unsecured loans to dairy farmers, with repayments linked to movements in milk price.  The extended scheme will build on the success of the initial MilkFlex product, supported by Ireland Strategic Investment Fund, Rabobank and Finance Ireland, which provided €64m in loans to members of Glanbia Co-Op since July 2016.

The interest rate charged will be a variable rate of 3.75% above monthly Euribor (currently -0.372%), set at a floor of zero.

The key features of the MilkFlex product are: 

• It will provide milk suppliers in the Republic with a funding product that helps protect cashflows from the impact of milk price volatility
• It will feature in-built ‘flex triggers’ that can adjust the repayment terms in response to movements in milk price and disease outbreak
• Loans will be available for amounts between €25,000 and €300,000
• Loans will be unsecured but repayments will be prioritised against milk cheques payments
• Repayments will also be adjusted to allow for seasonality
• It will be facilitated through participating Co-ops around Ireland, with Finance Ireland originating the loans backed by finance provided by ISIF and Rabobank
• It allows for investment in on-farm productive assets to support an existing or growing dairy farm enterprise (including dairy livestock, milking platform infrastructure and land improvement).

New categories relating to milk production are being included that were not available in the past,  such as investment in on-farm energy efficiency and renewable energy; environmental Investments; and agricultural technologies that deliver on-farm efficiencies.

In Association with

Finance Ireland will host a series of workshops with co-ops around the country over the coming months to provide information to supplier farmers interested in making an application for funding.

Photo (l-r): Kevin Bellamy of Rabobank, Billy Kane of Finance Ireland, minister Michael Creed and ISIF’s Eugene O'Callaghan. (Pic: Colm Mahady / Fennell Photography)