Monday, February 26, 2024

Bespoke pullet finance initiative launched by UK egg packer

Bespoke pullet finance initiative launched by UK egg packer. One of the UK’s largest egg packers, Stonegate, has introduced a pullet finance scheme designed to provide farmers with a better farm cashflow performance at the beginning of the flock.

The initial 3-month period of birds coming in to peak lay can weigh heavy on cashflows as feed, staff and other operating costs continue.

Created in conjunction with agricultural bank Oxbury, it is structured to complement free-range egg production cycles. There are 2 flexible pullet finance options available:

  • Stonegate 13 Pullet Finance Scheme – a 13-month facility with interest only repayments for the first 3 months, followed by 10 capital and interest repayments. This term is tailored for a standard production cycle of 16-76 weeks.
  • Stonegate 15 Pullet Finance Scheme – a 15-month facility with interest only repayments for the first 3 months, followed by 12 capital and interest repayments. This favours a longer white bird production cycle of between 16-100 weeks.

Both facilities are flexible and farms can apply for a minimum of £25,001 in finance up to the full or part cost of the pullet invoice and choose to either stick to the scheduled terms or start to make repayments early. Both options have a fixed interest rate of 8%. There is no arrangement fee and there is no requirement to move the farm’s current banking arrangements.ALSO READ: UK poultry outlook for 2024 mixed

Supporting farmers

Adrian Gott, CEO of Stonegate, said the pressure of cashflow can be hugely stressful for egg producers: “I am delighted that we are able to support our farmers tackle these potentially difficult periods with the launch of our scheme. Ultimately, our aim is to create a supportive environment for our farmers where they and their businesses can thrive. I am also very pleased how Stonegate is working in partnership and in collaboration with Oxbury on such an important area of the supply chain.

“The expertise here in Stonegate, to help advise and counsel farmers across every aspect of setting up and running a successful production facility, is second to none. This knowledge, coupled with the close collaborative working relationships, allow us to identify the challenges farmers face and deliver real solutions.”