Kreditgivning till lantbruksföretag
en jämförelse mellan Sverige och Danmark
In relation with structure transformation in farm companies with bigger animal population and pressure at the milk price, the farmers in both countries have to invest more money in the company to endure. This had conduct what more owners had seen grown requirements to invest in bigger population barns. The investment is necessary to retain stability in the economy for the companies, at that time when the profitability for small production barns decrease.
This essay carries out through a case, there the activities main part are milk production. The present operation consists of 82 milk cows in long stall with a yield on 10 500 kg ECM. The idea is that the company should increase the activity to 180 cows. This activity means that the company must invest in a new barn. The cost of the investment consider an amount of about seven million Swedish crowns. The total debts for the activity are 13 million crowns. This includes mature loans. An operation plan had been made for the present activity and one for the future activities to see the worth of the investment.
The purpose of this essay is to study credit giving to farm companies between Sweden and Denmark. The idea is to illuminate if there are difference in credit giving between the countries. The case is representative in both countries and the proposal is reviewed in respective country. The result analyses with appropriate theory. The essay carries out in cooperation with the Danish Bank.
The result shows many similarities between the both countries. Both Sweden and Denmark had estimate to accord the proposal. The only difference that could discerns from the propose at credit giving to farm companies is the personal relationship between the loan giver and borrower in Sweden. In Denmark is the handling officer more objective and control more what the company could perform and the personal relationship is less important.
The analysis show also that the companies cash flows and good efficient in production are the two main factors that decides if you get a positive answer of the propose. Both countries studies solidity and equity. There are no possibilities to find conclusive differences between the countries in credit giving to farm companies. Both Sweden and Denmark use the same financial tools to estimate the credit and the loan giver in Sweden as well in Denmark point out that the heaviest estimate factors are cash flows and efficiency in production.