Agfarm joins with mill to finance stockfeed

Agfarm joins with mill to finance stockfeed


Business
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Agfarm extends its input finance offering.

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MSM Milling, Manildra, director Peter MacSmith stands in front of the company’s six new silos installed to handle stockfeed pellets for domestic clients.

MSM Milling, Manildra, director Peter MacSmith stands in front of the company’s six new silos installed to handle stockfeed pellets for domestic clients.

GRAIN marketing business Agfarm has partnered with Manildra’s own MSM Milling to provide finance to farmers to buy the mill’s range of pelletised stockfeeds.

The offering marks Agfarm’s first foray into input finance in the livestock arena.

“We do a lot of input financing for the pre-sowing period so this offering is a natural extension which has good commercial value,” said Agfarm’s chief executive officer Ron McCalman, Sydney. 

“Our role is to try and make the process of using supplementary feeding products easy for growers to manage their cash flow.

“Farmers can now afford to pick the best way to mange their stock’s weight gain and not worry about funding the product up front.” 

Agfarm’s finance fees will be calculated on a per tonne basis and added to the price of the stockfeed order. There will be minimum orders.

Agfarm is offering finance for MSM’s entire stockfeed range with a special emphasis on the mill’s ‘Grain Optimiser’ range. 

MSM Milling co-owner Peter Mac Smith said the ‘Grain Optimiser’ pellets, available for sheep and cattle, allowed farmers to take advantage of their on-farm grain supplies.

“By mixing-in feed grains such as barley and triticale farmers can reduce their total ration cost by up to 30 per cent when compared to fully prepared rations,” Mr Mac Smith said. 

The pellets are made with non-GM canola meal expeller-pressed at MSM.

A major exporter and supplier of canola oil to Australia’s food manufacturing industry, MSM launched its stockfeed range last year and has since been targeting overseas clients, namely the New Zealand dairy industry.

This week it unveiled six new silos (each 90 cubic metres in size) that will be dedicated to supplying the domestic market. MSM spent $500,000 on the silos which will outload pellets in bulk or one-tonne orders. The company’s foray into stockfeed has been a $5m venture.

Peter Mac Smith started the business with his brother, Bob, in 1992. The business has been a 50-50 partnership with the Honan family company since 2007 and now employs about 60 staff at its Manildra site. 

Agfarm also formed in 1992. Under Warren farmer Bob McKay it became a leading grain acquisition agent for AWB. It is now 50/50 owned by Ruralco and farmer owned co-op CHS. It expanded into input finance in 2014, adding to its broking and account managing services.

MSM and Agfarm have worked closely in the past, with Mr McCalman (formerly of Emerald Grain) saying this finance offer was an “extension” of their working relationship.

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