16 August 2018 | Online since 2003


28 March 2018

New equipment financing for egg production


The process of modern egg production requires special machinery. In settings where demand can outstrip supply, the most efficient sorting and collecting systems can bring with them huge economic benefits.

New equipment therefore represents an excellent opportunity for egg farmers to boost efficiency.


Perhaps the biggest benefit of investing in new machinery and equipment though is that it tends to meet the latest welfare standards. For example, new sorting and collecting equipment can help farmers meet the EU Council Directive 1999/74/EC on the Welfare of Laying Hens and even exceed these standards.

Meeting demand


While the traditional egg production model of keeping hundreds of hens and sorting through the eggs by hand works, it is not efficient. Automation plays a key role in creating an efficient model that is scalable to meet demand. The equipment needed for this includes sorting, collecting, washing and packaging machinery.

The cost of new equipment is extremely high, however. Budgeting £10k to £100k for egg sorting machinery is the norm. If that cost seems too high for you, you’re not alone. Hundreds of traditional egg farmers have gone out of business in the last 10 years alone, something which can be attributed in part to the spiralling cost of modernisation (once you budget for a suite of new machines, egg farms can quickly become unprofitable). This is true of many farming practices, although egg farming is particularly affected.

Need new equipment? Consider financing it

Can’t afford the new equipment you need? The good news is help is available.

If you have a healthy egg farming business, then you can finance new equipment. New equipment finance could be used to convert your caged infrastructure into cage-free infrastructure; to improve the efficiency of line egg handling with a new dedicated machine; or to invest in new pullet growing equipment.

The point is, you could invest in whatever plant machinery you like so long as you have a dedicated backer who’ll fund you.

Nationwide Corporate Finance are a great example of a company who back British farmers and egg producers. If you need new equipment, they’ll look at your needs on an individual basis and lend to you. You could finance from £10k to £500k - more than enough to purchase new equipment. Alternatively, if you would like to use your existing equipment as capital, you can do equipment refinancing to release cash.

Here’s just a handful of the benefits of financing new equipment:

• Get funding within 24-hours
• Invest in state-of-the-art machinery to improve your production line
• Meet the latest egg production and poultry welfare standards
• Pay back the amount you borrow monthly with fixed payments
• Optionally, you can also refinance existing equipment to release additional cash

If you do choose to go down the route of new equipment financing for egg production, always compare lenders.

You should look for a competitive interest rate and speak to each lender to assess flexibility. It also pays to seek out lenders who have a history of lending to farmers, since they will understand the nuances of the industry.

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