Dairygold Co-op has negotiated lower cost loan and credit facilities for its milk suppliers, with both Bank of Ireland and AIB Bank.
The financing options are at discounted variable rates of as low as 4.1% for SBCI eligible loans, or 4.5% for non-qualifying SBCI loans.
In addition, a credit line facility is available at less than 4% to milk suppliers.
The funding is available for development and expansion of farm enterprises, including land purchase, capital investment, stock purchases and working capital for farm inputs.
The options are designed to support the growth and expansion ambitions of milk suppliers, and to assist with the cash flow challenges in the dairy sector due to poor dairy market returns.
These facilities will be available from September 1.
Dairygold chairman James Lynch said the facilities reflect the strong business relationship the co-op has with the two banks, and its commitment to support milk suppliers.
Full details, the options available, and the next steps to avail of loan and credit facilities will be communicated by Dairygold to its milk suppliers.
The loans and credit facilities will be subject to Bank of Ireland’s and AIB Bank’s standard credit approval processes and borrowing terms and conditions.
The facilities include Strategic Banking Corporation of Ireland (SBCI) eligible loans.
SBCI was established in 2014 to provide Irish SMEs (including farm enterprises) access to long term funding.
Sean Farrell, Head of Agriculture at Bank of Ireland Business Banking, said farmers require support and flexibility.
Noreen Lacey, AIB National Agribusiness Development Manager, said it focuses on developing solutions to support its farming customers.
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