Kerry Dairy Ireland has today (Tuesday, February 21) announced the launch of a new partnership with Bank of Ireland which it said will provide funding for sustainable farming improvements for its milk suppliers.
The partnership will result in the development of a sustainability-linked loan with discounted rates and flexible finance options for farmers who are members of the company’s Evolve dairy sustainability programme.
The sustainability-linked loans will provide an additional funding option for farmers in the implementation of sustainable farming practices aimed at reducing carbon and ammonia emissions, enhancing animal health, welfare and productivity, as well as improving biodiversity and water quality, according to the company.
Kerry partnership with Bank of Ireland
Eligible applicants must provide a clear plan outlining the Evolve sustainability measures they will implement on their farms and must remain committed to the programme throughout the loan’s duration.
The partnership will provide Bank of Ireland with key data as part of its sustainability reporting, as it works towards meeting its own science-based targets across its operations.
Bank of Ireland said that it is the first Irish bank, and one of the first in Europe, to have its 2030 emission reduction targets formally validated by the Science Based Targets initiative.
The Evolve dairy sustainability programme aims to support the accelerated adoption of science-based sustainable farming practices and is underpinned by Origin Green and the Teagasc Marginal Abatement Cost Curve (MACC).
James O’Connell, head of Kerry Agribusiness, said: “This partnership with Bank of Ireland demonstrates our commitment to driving science-based sustainability-related change across our milk supplier farms.
“We are delighted that our milk suppliers will have the opportunity to use participation in our Evolve dairy sustainability programme as the qualifying basis for attaining discounted loan rates and flexible finance.”
Eoin Lowry, head of agri at Bank of Ireland, said: “We are pleased to announce this new partnership with Kerry Dairy Ireland, which builds on our existing strong relationship.
“Loans directly linked to sustainability improvements on farms reward farmers for improving the environmental impact of their farming practices.
“Agriculture is an incredibly valuable part of the Irish economy and a key sector for Bank of Ireland, the largest lender to the industry providing more than half of all new lending,” he added.
Sustainability-linked loans such as these will also help the agriculture sector meet the government’s emissions reduction target of 25% by 2030, according to Bank of Ireland.
“Our partnership with Kerry Dairy Ireland and the introduction of this new loan product later this year is another positive step towards achieving best practice sustainable farming,” Lowry concluded.