Overview MilkFlex

The MilkFlex Fund

Exclusive to members of Glanbia Co-Op

Where do you start?

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This is the first fund of its kind to offer Irish farmers access to flexible, low-interest loans with innovative volatility buffers for changes in milk price, seasonality and disease outbreak. No asset-based security is required. The fund is managed by Finance Ireland Agri.

We are very proud to be partnering with Glanbia Co-operative Society, the Ireland Strategic Investment Fund (ISIF) and Rabobank in bringing Irish farmers the “MilkFlex Fund”.

This is the first fund of its kind to offer Irish farmers access to flexible, low-interest loans and the fund is managed by Finance Ireland Agri.

The fund is designed to help dairy farmers increase dairy production and can be used for a wide variety of purposes. A portion of the fund is ring-fenced for new entrants to dairy farming.

Purpose of the loan

  • Investment in productive on farm dairy assets
  • Farm infrastructure (milking parlours, animal housing, farm roadways etc.)
  • Equipment and facilities
  • Grassland improvement – including re-seeding and drainage works
  • Livestock purchases
  • Environmental controls/enhancements
  • Land improvements
  • Refinancing of any loans, cash or cashflow used in on farm projects commenced from 1st March 2014
MilkFlex Brochure

Loan information booklet

Want to know more about MilkFlex?

Learn about the key features of a MilkFlex loan and the application process in this useful information booklet. Read our FAQs for more.

Download
File type: PDF
Media Size: 1.05MB

So where do you start?

Give us a call

Speak to our specialist team on:

(01) 647 0255

Or request a callback

Call me back

The Loan Application Process

1

Complete Application Documentation

2

Farm Visit Conducted

3

Get a Loan Decision

Download the application

Key features of a MilkFlex loan Expand

  • Seasonal Payments

    No repayments from December to March. 10% of the annual repayment is made in each of the months of April, May, October, and November. 15% of the annual repayment is made in each of the peak milk production months of June, July, August, and September.

  • Security

    No asset-based security required (personal guarantees are required if lending to a limited company). Priority deduction from milk payments. Milk Supply Agreement (MSA) required for the duration of the loan.

  • Loan Approval Criteria

    Must be a viable business. Have a 5 Year Business Plan (only new entrants). Certain credit underwriting criteria apply. Finance Ireland Agri is required to apply criteria on behalf of the Fund. Your Co-op or other Fund stakeholders are not involved in credit process.

  • Volatility Triggers

    Facilitates the reduction of principal and interest repayments by 50% for a six month period if the Glanbia Ingredients Ireland (GII) manufacturing milk price is 28 cpl or below incl VAT for three consecutive months and by 100% for a six month period when milk price is 26 cpl or below incl VAT for three consecutive months;

  • Refinancing

    A maximum of 35% (pro rata) of the fund is available to refinance existing loans, credit and cash related to dairy activities. Usage confined to loans/projects commenced since March 2014.

  • New Entrants

    A New Entrant is defined as someone in dairying for less than 36 months, has been in milk production supplying the Co-Op for a minimum of 12 months at the time of the MilkFlex loan application. €4m ring-fenced for New Entrants. New Entrants can apply for loans of up to €150,000. Where the loan to value (all debt/ all assets) is less than 30%. New Entrants can apply for loans of up to €300,000. Long-term land lease to be in place to qualify for loans.

  • Loan Usage

    Any investment in productive on-farm dairy assets, including; Livestock purchases; Farm infrastructure (milking parlours, animal housing, farm roadways etc.); Grassland improvement – including re-seeding and drainage works; All environmental controls/enhancements, equipment, facilities and land improvement. Land purchase excluded. Funding can be sought for projects commenced from 1st March 2014.

Some of our latest deals Expand

Examples of deals we have completed and drawn down:

Location: Kilkenny

Dairy herd size (est): 190

Asset financed and/or purpose of MilkFlex loan:
Slatted tank and site works, erection of shed, fittings and fixtures and purchase of stock.

Cost of Asset and/or total project spend: €200k

Amount of MilkFlex loan borrowed: €200k

Date Application Received: June 2016

Date of Drawdown: July 2016

Total Time taken from Application Received to Drawdown: 7 Weeks

Location: Laois

Dairy herd size (est): 70

Asset financed and/or purpose of MilkFlex loan:
Clear merchant debt, refinance cash flow, purchase 20 heifers, works on parlour, slurry storage.

Cost of Asset and/or total project spend: €75k

Amount of MilkFlex loan borrowed: €75k

Date Application Received: Jul 2017

Date of Drawdown: Aug 2017

Total Time taken from Application Received to Drawdown: 4 Weeks

Location: Waterford

Dairy herd size (est): 90

Asset financed and/or purpose of MilkFlex loan:
Purchase of dairy stock.

Cost of Asset and/or total project spend: €120k

Amount of MilkFlex loan borrowed: €120k

Date Application Received: Jan 2017

Date of Drawdown: Feb 2017

Total Time taken from Application Received to Drawdown: 6 Weeks

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