ABC Dairy Ltd.

ABC Dairy Ltd.

ABC Dairy Ltd. is a family-owned dairy operation located in North Central Alberta, milking approximately 100 cows. They have been in operation since 2007, having relocated from the Fraser Valley.


Significant infrastructure was financed and built to expand the dairy; however, it was not being fully utilized after Covid impacted the quota markets. As a result, the barn space now exceeded the owned production quota and was exposed to the risks of the lease market in order to utilize the full operational capacity. The client was seeking financing solutions to purchase additional quota from the incumbent lender, but faced hesitation due to concerns about the risk involved in the growth trajectory.


Gregory Gonnet was approached to find a willing lender who could provide funding for the quota purchase to maximize the barn’s capacity and consider future expansion plans. Gregory conducted a thorough analysis of the farm’s financial position and developed multiple pro forma cash flow projections, taking into account the impact of the new quota on production. Based on this analysis, a loan structure was created to accommodate both the immediate needs and the farm’s future growth in terms of land or quota.

Working closely with lenders, Gregory refined the credit package, ensuring that the cash flow projections and analysis were accurate and supported by current production results. Ultimately, Gregory secured a financing structure that allowed for the acquisition of an additional ~30kgs of quota, while also providing flexibility to adjust and accommodate future capital projects.

The borrower benefited from significant cost savings over the first five years of the term, amounting to over 150k. This successful arrangement positions the farm for a smooth transition to the next generation and sets it up for continued success.

Services Used

  • Interest Only
  • Revolving Credit
  • Commercial Farm Mortgage