What is Pet Food & Animal Feed Trade Finance?
With complexities involved in sourcing ingredients, extensive transportation and processing requirements, and strict contractual obligations from a small customer base of high-volume consumers, trading in animal feeds can be commercially challenging. Whether your business is trading in premium pet foods or high-volume livestock feeds, Trade Finance Global is here to help.
Pet Food & Animal Feed Trade Finance
With a spate of recent mergers and acquisitions between pet food suppliers and manufacturers in the last year, and the product becoming just one casualty of the developing Sino-US trade war, there is a level of volatility in the global market for pet food products. In the UK, overall demand for pet food has held stable, but with robust growth in certain product categories; sales of dog treats continue to grow both in value (by 4%) and volume (to a new high of 112,000 tonnes) in 2017. Internationally, global trade of animal fodder has facilitated the consolidation of agricultural production systems in many countries, and increasing specialization amongst processers, with exports of soybean and maize growing year on year.
Trade Finance Global can help to structure bespoke financing packages that enable the expansion of trade in these goods, offering a range of export factoring products to finance profitable ventures. TFG can also assist with the complex international transactions required to source and sell animal feeds, whether by supporting clients exposed to exchange rate fluctuations through provision of currency risk management products, or by constructing performance bonds or bank payment obligations to ensure that key processing and transport tasks are undertaken promptly and properly by agents involved in the transaction.
Key products include:
- Pet foods, wet or dry
- Pet treats and snacks
- Fish and marine mammal solubles
- Fodder or provender products
- Compound feeds
- Crops for sale as animal feed
- Your business has a good trading history
- You and your business are creditworthy
- You have an established customers base
Expanding production or export activity can be expensive for animal feed producers, which subsequently can create great uncertainty for both the exporter themselves and the importing party. Trade Finance Global can assist firms with these issues by helping them access finance from private lenders and negotiating bespoke repayment terms suited to their requirements. Instead of requiring onerous capital requirements on loans like conventional commercial finance, trade finance is guaranteed by firms’ profitable operations, whether that be unpaid invoices, accounts receivable, or the goods traded themselves. This enables firms to free up working capital to invest in new ventures without risking business capital or ceding company control through sales of equity.
What is the SIC Code for Trade in Pet Food & Animal Feed?
The manufacture of prepared pet foods and prepared feeds for farm animals are covered by two SIC codes – 10920 for pet food and 10910 for animal feed.
The sale of these products are covered under SIC Code 47760 (for retail of pet food in specialised stores) and 46210 (for wholesale of animal feeds).
Separate trade finance pages exist for Farming & Livestock Finance and Agricultural Trade Finance.
Full tariff schedules for pet food and animal feed are available on gov.uk.
A high-quality animal feed retailer offering national delivery received multiple large orders from new clients. Trade Finance Global helped the client free up working capital finance secured against their accounts payable to fulfil these orders and enjoy a record financial year.
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- Access to finance without large capital requirements
- Release working capital from your business
- Complete large transactions supported by trade finance experts