Agribusiness

New products: Stockco launches new ‘create more weight’ finance facility for spring

Beef Central, 04/08/2020

Stockco has announced the launch of a new product which is designed to provide a cash advance against new season progeny.

The aim of the new “Create more weight” product is to assist enterprises to ride out current market volatility and provide an opportunity to utilise available feed.

It has been timed for the forthcoming spring lamb season, but is also available for beef and has been used to cashflow feedlot weight cattle onto feed or to take weaners through to feeder weights.

It is important to note, the financier says, that the cash advance element may require existing financier approval.

StockCo Business Development Manager Chris Howie said the feed situation in many areas is ideal for putting extra weight on new season lambs.

However the COVID impact on processors had created some angst around the timing of lamb sales to meet cash flow needs, whilst still achieving an optimal financial outcome.

“Traditionally producers aim at a particular sale window to meet financial cashflow budgets and manage grass seeds or avoid shearing.

“This year is unique and looking outside of the traditional box may provide opportunity.

“A cash advance against lambs for 60 to 90 days in a positive feed situation can provide additional marketing flexibility and the delivery of a better carcass weight.”

The product could also be of interest to producers looking to purchase trading lambs to utilise natural pastures and some exceptional grazing crops.

“During the drought we were reliant on grain assistance to deliver slaughter quality lambs, however this year the spring in NSW, Victoria and SE of SA is looking ideal to trade lambs off grass and stubble,” Mr Howie said.

“The beauty of grass fattening is that no additional feeding costs are incurred.”

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