North-east animal feed firm expands after six-figure deal
Norvite Animal Nutrition, which supplies animal feed and supplements to livestock industry clients across the UK, has boosted its capacity following a £375,000 asset finance package from Clydesdale Bank.
The Insch-headquartered business has acquired a new mobile milling machine following the funding injection, which it claims will enhance delivery of its food products to clients in pig and poultry farming.
The new purchase is expected to improve the firm’s output by up to 30 per cent, significantly increasing Norvite’s capacity to serve clients nationwide, as well as lowering business costs which were previously tied to the maintenance of older machinery.
The milling technology is designed for farming customers to mix feed for livestock at their own premises, enabling them to meet their personalised requirements.
This mobile service is in particularly high demand with pig and poultry farmers, where the continual supply of nutrition is critical in order to maintain the constant feeding cycle, said Norvite.
With a second Aberdeenshire base at Oldmeldrum and an additional facility in East Ayrshire, the company’s footprint includes two manufacturing sites and three retail units.
Norvite managing director Ed Smith highlighted the difficulties associated with securing the new machinery, a 12-month process which was complicated by international logistics and exchange rate issues.
He said: “With our mobile-milling business growing and our fleet of vehicles ageing we needed to invest to maintain service levels on our farm.
“With only two suppliers of mobile mills in Europe, having to deliver a lorry chassis to Germany six months in advance of manufacture, each machine bespoke for every customer – not to mention then having to be re-registered in the UK – this was not your straightforward asset finance transaction.
“However, Clydesdale Bank were very helpful and supportive.”
Norvite has traded for more than 40 years and holds a Royal Warrant from the Queen as a manufacturer of specialist animal feed and supplements.
Ian Grant, commercial relationship manager at Clydesdale Bank, which forms part of CYBG Group, said: “The bank is committed to maintaining a flourishing agricultural industry in Scotland, in which businesses like Norvite play a major role.
“We’re thrilled that our support has enabled the business to scale-up its operations and wish the management team every success.”