On 9^th March, Glanbia Co-op in partnership with Ireland’s Strategic Investment Fund, Rabobank and Finance Ireland announced a new €100 million “MilkFlex Fund”. The loan facility is competitively priced at 3.75% above the Euribor rate currently at zero and includes volatility triggers which adjusts a farmers repayments in line with milk prices. Under the scheme, finance of between €25,000 to €300,000 over 8-10 years will be made available for investment in on farm productive assets, such as livestock, milking platform infrastructure and land improvements. ICOS warmly welcomes this initiative and commends those involved in its establishment.

However, it is extremely important that all dairy farmers have access to similar terms and conditions particularly during years when cash flow is severely impaired due to low milk price. It is vital that the so-called pillar banks respond by following the lead of Glanbia. In addition, the Government and the Commission have promised much but delivered little in relation to EIB backed loans to farmers and the food sector. Action is needed without further delay.

By Eamonn Farrell

ICOS Agri & Food Policy Executive