Farming business diversifies to fuel racehorse industry with £1.6m investment

A family-run farming business known for its organic milk, hay and straw production is diversifying its business as it looks to supply feed to the UK’s racehorse industry.

AW Brandreth & Sons, a Warwickshire-based, third generation farming partnership, has invested £1.6m in a ground source heat pump to dry Lucerne hay, which is in demand from the UK’s equestrian industry where it is used to provide energy, good quality protein and a source of fibre to the specialist diet of performance racehorses.

Sixty acres of Lucerne seed has been planted already which is scheduled for harvest in August.

The heat produced by the new GSHP will also be used to produce organic dairy grade Lucerne hay as well as other forms of straw and hay.

Joe Brandreth, of AW Brandreth & Sons, said: “Thanks to the contacts we’ve built up through our successful hay and straw business over the years, we have a strong book of demand for Lucerne hay and so felt that an investment in a GSHP would help to not only diversify the business but take it to the next level.

“We are looking forward to seeing how the investment in GSHP will help us unlock a new market and grow AW Brandreth for the future.”

The specialist agriculture and renewable energy team at Shawbrook Bank provided a funding facility of £1.6m to AW Brandreth to finance the project, with the GSHP pump installed by Omi Heat and Power.

Chris Russell, business development manager at Shawbrook Bank, said: “Our reputation as a specialist lender has been maintained over the years due to a strong emphasis on relationship management.

“After being approached by Joe and the team, we quickly realised that this was a superb opportunity for the business and one that we whole-heartedly supported.

“This was Shawbrook’s first heat pump project of this size and it came with a number of potential challenges, as most project finance transactions do. But by working closely with Joe and Martin we were able to work through those obstacles and put a facility together that will help AW Brandreth further diversify and protect their business for the future.  I am excited to see what the future holds for the farm with this latest venture.”

Shawbrook Bank was introduced to this project by Justin Amos of Portman Asset Finance.

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