FRANCE— French animal feed producer Avril Group and its animal nutrition subsidiary Sanders have launched a EUR6 million (US$6 million) once-off aid package for livestock farmers in France.
The company said the aid is available to eligible breeders who request it, regardless of their production, or whether they are clients or future clients, and is aimed at helping them as they transition to profitable and sustainable farming.
The scheme addresses three main objectives: to promote the transfer, installation, and development of farms, thus contributing to the sustainability of French livestock to support the modernization of facilities toward more sustainable livestock farming, and, within an unpredictable inflationary context, to provide solutions to facilitate access to quality protein nutrition.
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 finally the avian flu, livestock farmers are facing a very complex economic situation.
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
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,” said Philippe Manry, general manager of Sanders.
Further financing
Meanwhile, Avril’s animal nutrition and compound feed arms are set to benefit from a €1.18bn financing program the group as a whole has secured, through its banking partners refinancing.
The financing which is structured around a €900m bank loan together with a €280m securitization program is aimed at further accelerating Avril’s overall development and is subject to Environmental, Social, and Governance (ESG) criteria.
The ESG criteria are based on corporate social responsibility priorities which include climate concerns, under which the company aims to realize A 30% reduction in greenhouse gas emissions associated with its scope 1 & 2 emissions by 2030 (versus 2019)
Under its Personnel safety CSR Avril aims to reduce the accident frequency rate and within its Gender equality CSR priority, to equalize the proportion of women among the group’s top management
The group said it will accordingly continue to intensify and accelerate its growth momentum 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.
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