Oakland Farm Eggs, based in Shropshire, have refinanced its debt along with its working capital facilities, transferring all facilities to HSBC. This enables them to access £28m combined worth of term debt, working capital and asset finance.
HSBC Global Relationship Manager, John Barker, will oversee the bank’s support of their investment to increase the capacity for production, as well as seeing an upgrade in the facilities to improve the welfare of the hens.
Oakland has made a large investment to fall in alignment with updated EU requirements which were established at the beginning of the year in order to care for the welfare of hens. They have created their own system which allows them to maintain standards that will comply with these regulations.
The regulations have seen an increased demand for eggs produced in the UK as producers in most member states of the EU haven’t managed to comply by the 1st January deadline and are unable to sell within the EU.
Oaklands Finance Director, Elwyn Griffiths, clearly understands the importance of their relationship with HSBC:
“We produce high welfare, European Compliant eggs and we are seeing unprecedented demand for our product from the UK and Europe as a result of the EU legislation and the UK’s ever growing love of eggs. We are investing significantly in the business to position ourselves for the future, not just for today, and it is important to have a banking partner that understands our business and industry. HSBC’s team appreciates the dynamics of the marketplace, the importance of building a long-term, sustainable relationship and the flexibility and scale of modern food production.”