Ulster Bank keen to grow Market Share

Ulster Bank is keen to grow its market share across the agri food sector in spite if the increased cost of funds “ Cormac McKervey, Head of Agriculture, told a meeting of the NI Grain Trade Association this week.

He said “ While base rate remains low, the cost of 'buying in'  money, the so called LIBOR rate remains higher. This is turn has increased the cost of borrowing. However Ulster Bank remains competitive, is open for business and keen to grow its market share across the agri food sector”

Commenting on the various sectors Cormac said “ The lack of profitability in milk production has certainly caused cash flow problems on many farms but the bank is working with its customers as best they can. Other sectors are performing well with good prices buoyed up by both the effect of currency and the relative lack of supply of product.

“Suckler, beef farmers in particular are seeing a return to profit this year  while pig farmers are significantly reducing bank/merchant debt and in some cases seeking to expand the business further. The poultry sector too is expanding both for meat and eggs.

Discussing the farmer’s vulnerability to market fluctuations Cormac said ““The major issue going forward is the sheer volatility in markets as Brussels withdraws its market management tools. While these are available for milk products it is clear how reluctant Brussels is to support markets. Any risk associated with farming now rests with the farmer as any safety blanket which was there in the past is slowly being removed. The boom/bust cycle normally reserved for pig and potato farmers is now evident sector wide.“