Sanders to provide €6m in aid to French livestock farmers
The scheme was first announced by the Avril Group back in spring.
"Given the increasing prices of raw material over the last two years and the consequent increase in the price of feed aggravated by the war in Ukraine, the increase in energy costs, and avian flu, livestock farmers are facing a very complex economic situation,” commented Philippe Manry, general manager of Sanders
The financial support from France’s leading animal feed company is aimed at helping farmers as they transition to profitable and sustainable farming.
Applications for the funding will be evaluated on a case-by-case basis.
The scheme hopes to promote the transfer, installation, and development of farms, thereby contributing to the sustainability of French livestock, it is looking to support the modernization of facilities, again with the goal of enabling more sustainable production, and finally, the company wants to provide solutions that facilitate access to quality protein nutrition.
"We are committed to partnering with each link in the chain so as to create value for livestock farmers.”
In its standard contracts, Sanders offers an option dubbed Sécuripro which is designed to enable livestock farmers to take advantage of any drop in the market price of raw material. “In the present context of high price volatility, this insurance offers the livestock farmer visibility by securing their cost price - if the market goes up, the price is capped, however, if the market goes down, Sanders reimburses the livestock farmer the difference.”
The company said it also covers 50% of the cost of this insurance.
ESG linked financing
Meanwhile, Avril’s animal nutrition and compound feed arms are set to benefit from a refinancing program the group as a whole has secured, a spokesperson told us.
The group announced on September 9 that it had raised €1.18bn through its banking partners. The funding is subject to Environmental, Social, and Governance (ESG) criteria and is aimed at further accelerating Avril’s overall development. The financing is structured around a €900m bank loan together with a €280m securitization program.
The ESG criteria are based on CSR priorities:
- Climate concerns: A 30% reduction in greenhouse gas emissions associated with Avril's activities (scopes 1 & 2) by 2030 (versus 2019)
- Personnel safety: The accident frequency rate
- Gender equality: The proportion of women among the group's top management
“These additional resources are intended, on the one hand, to finance operations at a time of sharply rising raw material prices and, on the other, to bolster the group's development. In keeping with its strategic priorities and ambitions, the group will accordingly continue to intensify and accelerate its growth momentum.
“This positioning will be pursued through new acquisitions and structural investments across its four priority markets: specialty ingredients, consumer goods, renewable energies, as well as products and services for the agriculture world,” said the French company.
