Egg giant Stonegate has announced the launch of a pullet finance facility that is now available to its farmer supply base.
The new initiative has been created by the Clarence Court owner in partnership with British agriculture bank Oxbury, and is structured to complement free-range egg production cycles.
The scheme, which will finance the supply of young hens for farmers’ egg supply, has been designed to promote better farm cashflow performance for farmers at the beginning of the flock.
The initial three-month period of birds coming into peak lay can weigh heavily on cashflows as feed, staff and other operating costs continue to leave the farm without the income from eggs, the business said.
This comes following a period of extreme rising costs for the sector which saw egg production decline at the start of 2023, leading to gaps on shelves at the major mults.
“The pressure of cashflow in a business can be hugely stressful and I am delighted Stonegate is able to support our farmers tackle these potentially difficult periods with the launch of Stonegate Pullet Finance Scheme,” said Adrian Gott, CEO of Stonegate.
“Ultimately our aim is to create a supportive environment for our farmers where they and their businesses can thrive.”
There are two flexible pullet finance options available: a 13-pullet finance scheme and 15-pullet finance scheme.
The Stonegate 13-Pullet Finance Scheme is a 13-month facility with interest-only repayments for the first three months, followed by 10 capital and interest repayments. This term is tailored for a standard production cycle of 16 and 76 weeks.
The 15-Pullet Finance Scheme is a 15-month facility with interest-only repayments for the first three months, followed by 12 capital and interest repayments. This term is tailored to the longer white bird production cycle of 16 to 100 weeks.
Both 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.
They have a fixed interest rate of 8% and there is no arrangement fee or requirement to move the farm’s current banking arrangements.
“The expertise here at Stonegate, to help advise and counsel farmers across every aspect of setting up and running a successful production facility, is second to none,” said Gott. “This knowledge, coupled with close collaborative working relationships, allows us to identify the challenges farmers face and deliver real solutions.”
This comes following an earlier partnership between the NFU and Stonegate to launch the first of its kind avian influenza insurance policy scheme to reduce farmer risk.
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