From production pressure to scaled exports: Dairy products manufacturer unlocks working capital to fund expansion
An internationally owned dairy products manufacturer operating farms across Tasmania and Victoria had built a strong position in UHT processing, plant-based beverages and contract manufacturing. Despite growing exports, rising input costs, seasonal cash flow cycles and volatile prices were constraining growth. Octet structured a $4.55M agribusiness finance package combining Debtor Finance, Trade Finance and a Term Loan to unlock working capital without diluting ownership.
$4,000,000
Debtor & Invoice Finance
$150,000
Trade Finance
$400,000
Term Loan
The challenge
The business had all the fundamentals for growth: specialist UHT dairy capability, diverse product lines, established export relationships across South-east Asia and international ownership providing long-term strategic backing.
But the operating environment was working against them. Ingredient, packaging, energy, labour and freight costs were all rising. Export growth required higher upfront production spend. Seasonal production cycles meant cash inflows rarely aligned with outgoing costs; customer payment terms meant cash could be tied up in receivables after products had already been manufactured and shipped.
"This was a business with real scale and genuine ambition via herd expansion, automation, new product lines and bigger export contracts," said Sam Ralton, Director Working Capital Solutions – VIC, TAS, SA.
"But every dollar of growth required cash they couldn't access fast enough. Revenue was strong, yet working capital was always under pressure because of the gap between when costs hit and when receivables landed."
Compounding the challenge, the international ownership structure meant no director or shareholder guarantees were available.
The business needed a facility that could work around that structure while still providing the flexibility to fund production, manage supplier payments and support planned investment.
The company then engaged Octet to create a funding solution that would stabilise cash flow and support growth — without relying on traditional lending.
The solution
As the primary account owner, Sam worked with the business to structure a finance package addressing three distinct pressure points: receivables, supplier payments and growth investment.
OctetDebtor: $4M
Debtor and invoice finance unlocked capital tied up in receivables, fast tracking cash from outstanding invoices. This reduced seasonal working capital pressure and funded daily operations without introducing new debt covenants.
OctetTrade: $150K
Trade finance bridged supplier payment timing which was used to fund herd feed, inputs and equipment purchases before the revenue had landed. This allowed the business to secure bulk-buy discounts on critical ingredients and packaging.
Octet Term Loan: $400K
This supported productivity upgrades including milking automation, herd expansion and processing capacity. It smoothed debt service while preserving overdraft headroom and resilience against price and weather shocks.
Octet worked closely with the client to:
- structure funding without director or shareholder guarantees, using first mortgage security
- align facility drawdowns to seasonal production and receivable cycles
- preserve ownership and avoid equity dilution while scaling operations
- stress-test debt capacity against milk-price, weather and cost shocks
- phase capital spending to match revenue growth and maintain liquidity headroom.
"You don't need to dilute ownership or over-leverage to scale an agribusiness. The right combination of facilities, matched to production cycles and revenue patterns, gives you the headroom to grow confidently while managing the volatility that comes with the territory,"
Sam RaltonDirector Working Capital Solutions VIC, SA, Tas - Octet
The result
With reliable working capital now aligned to their operating rhythm, the business has been able to act on growth opportunities that were previously out of reach. They are scaling export volumes by accepting larger wholesale orders across South-east Asia without straining cash flow.
The debtor finance facility has allowed the company can fund ingredients, packaging, labour and logistics with greater certainty, while continuing to accept larger domestic and export orders without putting unnecessary pressure on working capital. It also gives management clearer visibility over cash flow, supporting more confident production planning and supplier negotiations.
The trade finance facility provides greater flexibility around supplier payments for ingredients, packaging and other production inputs. This helps the business plan production more confidently, manage larger orders and maintain supply continuity.
The term loan is funding staged investment in automation, herd performance and value-added product lines. This lifted margins, throughput and competitive positioning in premium UHT markets.
Critically, the structure provides resilience. Debt capacity has been stress-tested against commodity price swings, weather events and cost shocks, giving the leadership team confidence to plan long-term.
"They now have a financial foundation that matches their ambition," says Sam. "With cash flow stabilised and capital deployed into the right areas, they're well positioned to grow their export footprint and invest in the infrastructure that will drive the next phase."
For agribusiness and primary producers, the right combination of debtor finance, trade finance and term loans can unlock growth without diluting ownership or over-leveraging against volatile commodity cycles.
Octet offers tailored financing solutions designed to address the unique working capital challenges of seasonal, export-driven businesses.
Talk to our working capital specialists today and take the next step toward sustainable growth.
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Disclaimer: The above article content and comments are our views and should not be construed as advice. You should act using your own information and judgment. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgment as at the date of publication and are subject to change without notice.
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