Introduction: Financing the Future of Dairy Farming
The UK dairy industry is evolving rapidly. Farms and processors are adopting robotic milking systems, precision herd management tools, and complete dairy processing lines to meet growing demand while tackling labour shortages, environmental pressures, and market volatility. Yet, the cost of modern equipment — often running into the hundreds of thousands or even millions — is a significant barrier.
At Gable Asset Finance, we provide dairy machinery and equipment finance tailored to UK farms and processors. Our solutions start at £5,000 and scale up to £25 million, covering everything from a single robotic milking unit to a full processing facility for milk, cheese, butter, yoghurt, ice cream, and milk powders.
We offer asset finance, hire purchase, leasing, and sale & leaseback options that allow you to acquire the latest dairy technology without draining your working capital. Whether you’re a family-run dairy farm, a cooperative, or a commercial food processor, our team will build a finance package designed around your growth plans.
Types of Finance Solutions Available
Asset Finance & Leasing
Asset finance enables you to acquire high-value equipment while spreading costs over a fixed period. Leasing agreements allow you to use the latest equipment immediately, with options to upgrade at the end of the term. This makes it easier to stay current with evolving dairy technology while avoiding the risks of depreciation.
Example: A dairy farm investing £800,000 in a rotary milking parlour can lease the equipment over seven years, paying manageable monthly instalments that align with seasonal cash flow.
Hire Purchase (HP)
Hire Purchase works well when long-term ownership is important. You pay a deposit followed by fixed monthly payments. Once the term ends, ownership of the asset transfers to you. This suits dairy farmers and processors who plan to keep their machinery for the long haul.
Example: A milk cooling tank costing £60,000 can be acquired with a 10% deposit and 60 monthly instalments, allowing the farmer to retain ownership at the end.
Sale & Leaseback
Already own valuable machinery? Sale & Leaseback enables you to sell it to us and lease it back. This unlocks capital tied up in assets while keeping your farm operational. It’s an ideal solution for improving liquidity during expansion.
Example: A processing plant refinanced its pasteurisation line, unlocking £500,000 in capital to fund packaging upgrades.
Refinancing Existing Assets
Gable Asset Finance also refinances tractors, balers, combine harvesters, bottling plants, and other agricultural machinery. By refinancing, you free up working capital without needing to sell your equipment.
What Can Be Financed?
We provide finance solutions for a wide range of dairy and agricultural equipment, including:
- Robotic Milking Systems: Automated milking units, robotic arms, teat cleaning and dipping, sensors, and herd management software.
- Dairy Parlour Equipment: Herringbone parlours, rotary parlours, and parlour automation technologies.
- Dairy Processing Lines: Finance for pasteurised milk, ESL milk, UHT milk, yoghurt, butter, cheese, ice cream, condensed milk, fermented products, and milk powder plants.
- Farm Vehicles & Equipment: Tractors, balers, combine harvesters, cultivation machinery, fertilising equipment, and harvesting machinery.
- Food & Drink Processing: Bottling plants, farm drying plants, food processing units, and automated packaging systems.
- Other Agricultural Assets: Livestock handling systems, logistics and haulage vehicles, farm security systems, plant machinery, rotavators, and renewable energy assets like wind turbines.
Industry Trends in Dairy Technology
Automation & Robotics
Robotic milking systems are revolutionising dairy farming in the UK. Adoption is rising, especially among mid-sized farms seeking to reduce labour costs and improve consistency. Automated feeding and cleaning systems further streamline daily operations.
Sustainability & Green Investment
Pressure to cut carbon emissions is driving demand for energy-efficient machinery, waste recycling systems, and renewable energy. Financing green technology allows farms to reduce operational costs and meet sustainability targets.
Consumer Preferences
Demand for organic dairy, high-welfare products, and value-added goods like probiotic yoghurt is rising. To meet this, processors are upgrading equipment for innovation and compliance with strict food safety standards.
Global Dairy Trade
UK processors are increasingly exporting cheese, butter, and milk powders. Upgraded equipment boosts competitiveness in international markets. Flexible finance supports farms looking to expand into exports without risking financial strain.
Tax Considerations for Dairy Equipment Finance
Financing dairy machinery isn’t just about spreading costs — it can also deliver tax benefits. Key considerations include:
- Capital Allowances: Many assets qualify for the Annual Investment Allowance (AIA), enabling 100% tax relief on qualifying expenditure up to £1 million annually.
- Leasing Payments: Lease rentals are usually deductible against taxable profits, reducing your overall tax bill.
- VAT: On some agreements, VAT is spread across instalments rather than paid upfront, easing cash flow.
- Grants: Funding schemes like the Farming Investment Fund provide additional support for sustainable equipment purchases.
Example: A £500,000 robotic milking installation financed via hire purchase could qualify for AIA, reducing taxable profits by the full amount in year one, while also spreading VAT payments.
Case Studies
Case Study 1: Robotic Milking for a Family Farm
A 150-cow family farm in Somerset invested £350,000 in two robotic milking units. With Gable Asset Finance’s leasing solution, they spread costs over seven years. Labour costs fell by 30%, and herd health improved thanks to consistent milking schedules.
Case Study 2: Dairy Processor Expansion
A cooperative in Yorkshire financed a £2.5 million milk powder line. Using hire purchase, they scaled operations without depleting cash reserves. Within two years, exports to the Middle East grew by 25%.
Case Study 3: Sale & Leaseback for Liquidity
A farm in Devon refinanced its tractors and balers, releasing £400,000 in working capital. The funds were reinvested into renewable energy, installing two wind turbines that reduced energy bills by 40%.
Case Study 4: Parlour Upgrade
A dairy in Wales upgraded to a rotary parlour worth £900,000. Through asset finance, repayments were aligned with milk sales cycles. Milk output rose 20%, and cow welfare indicators improved.
Case Study 5: Diversification into Yoghurt
A small processor in Scotland financed £600,000 worth of fermentation and packaging equipment. With Gable Asset Finance’s support, they launched a premium yoghurt brand that now supplies UK supermarkets.
Case Study 6: Large-Scale Processing Facility
A Midlands-based processor secured £15 million financing for a full UHT milk and cream line. Using a structured finance package, they doubled capacity and entered new export markets.
Why Choose Gable Asset Finance?
- Finance solutions from £5,000 to £25 million.
- Specialist in dairy, food processing, and agricultural machinery finance.
- Tailored packages with repayment terms aligned to farm cash flow.
- Competitive rates compared to dealership finance.
- Support for new, used, and auction-bought equipment.
- Expert advice on refinancing, tax efficiency, and grant applications.
- Over 30 years of experience supporting UK farmers and processors.
Get Started Today
At Gable Asset Finance, we specialise in dairy machinery and equipment finance that empowers UK farmers and processors to grow sustainably. Whether you’re considering robotic milking systems, parlour upgrades, processing lines, or farm machinery, we can provide the right funding package.
Contact us today to speak with a finance expert and explore how we can help you invest in your farm’s future with confidence.
We can help arrange business finance and leasing products on equipment and technology to provide dairy farmers with the most suitable solutions and efficient products for all types of dairy farming today on items such as:
- Robotic milking
- Herringbone parlours
- Rotary parlour
- Milking equipment
- Milking automation
- Cleaning systems
- Feeding systems
- Herd management
- Milk cooling
- Animal care
- Slurry systems
Are you planning a new diary?
We can provide funding and finance on a full refit for existing businesses or start ups. We the only UK finance company that specialises in milking technology and dairy fitout leasing.
We are totally independent with links to a range of specialist funding partners, and this allows us to select the best and most competitive financial package for our clients. What’s more, we’ll manage the whole process from start to finish, clearly explaining each stage in jargon-free language.