Banking on the top
Raho
hand Issue 13/December 14, 1992
The Rabobank has a long history as leading food and agribusiness
bank in the Netherlands - no mean feat in a country which is the
third largest exporter of agricultural products in the world. Al-
though the bank has expanded into all other areas of the banking
market, it retains a special know-how and expertise in agribusi
ness - a specialism it is now offering to this global sector through
the network of foreign offices around the world. Raboband Inter
national asks people in the international division how the bank is
putting into practice its aim to become the top food and agribusi
ness bank worldwide.
With almost a century of agribusi
ness expertise behind it on the
domestic market in the Nether
lands, the Rabobank has become synony-
mous with that sector at home. Just over a
decade ago, it began its push to become a
player on the giobal scene and has already
booked some major successes. The New
York branch, opened in 1980, has devel-
oped into the third largest agribusiness
bank in the US and the international de-
partment is currently working closely with
the other offices to create an environment
in which they can follow New York's lead
wherever possible. 'This is a logical devel-
opment', says Cor Broekhuyse, deputy gen-
eral manager of the International Division.
He took up his position in March this year
and is gradually focussing the banks mar
keting effort abroad with the aid of the
people on the spot. 'We were rather late
starters,' admits Broekhuyse. 'Until around
10 years ago, we were primarily oriented to
our domestic market. But when a lot of our
major clients began setting up operations
worldwide, we feit we had to follow. For a
time, we concentrated mainly on serving
them. That has changed now and were be-
coming more aggressive in our marketing ef-
forts to sell the bank as the agribusiness
partner par excellence wherever the clients
happens to be operating.'
Roots Although the Rabobank's roots
lie in agribusiness, and Broekhuyse empha-
sizes that it is an area of true know-how and
expertise within the organization, there is an
additional factor for pursuingthis goal so ar-
dently. Tt's very much a stable, low-risk sec
tor', he says. 'You just have to look at the
stock markets. Food company equity is al-
ways a relatively safe investment - after all,
everybody eats. It's a growth sector in every
conceivable way. Add to that the fact that
there are a lot of banks which do not un-
derstand this industry, and you'll see that
competition isn't too much of a problem at
the moment.' But clearly nothing remains
the same for ever. The agribusiness people
at the Rabobank worldwide are continually
fine-tuning their approach to the market.
Broekhuyse has set up an Agribusiness Re
search Department specifically to spear-
head that effort and ensure the bank is al-
ways one step ahead of the competition -
wherever it comes from. Broekhuyse and his
team have a firm aim at the basis of their
whole strategy. 'The idea is to become a
truly global agribusiness player', says Broek
huyse. 'Five years from now we should have
reached a stage whereby any project or com
pany operating in this sector will immedi-
ately think of Rabobank if they have banking
needs.'
Expansion Aims and strategies always
look very fine on paper. But how does the
bank plan to support this effort? 'We have
taken a number of steps to ensure our mar
keting effort is effective', explains Hans
Reusch, head of agribusiness research.
'One of the ways you can do that is to pro
vide the people in the field with solid back-
up.' The research department is geared to
producing indepth studies of various areas
within the sector. 'This is not only to provide
our colleagues worldwide with analyses of
specific commodities or industries within
the sector', says Reusch, 'the idea is to
generate discussion through these tools.
The reports are assets which can be used
by our people in their work with clients, but
they also show the clients we know what
were talking about and are willing to stick
our necks out by making forecasts and pre-
dictions on future movements within those
sectors.'
Cooperation The department has a
team of expert researchers who not only in-
itiate reports but are
also available to as-
sist the bank's agri
business people
worldwide in their
marketing efforts.
Perhaps the best
example of how this
works is a recent
study and field trip
organized bythe New
York and Utrecht of
fices. T'd been com-
municating with the
Utrecht office on a
regular basis about
coordinating our mar
keting effort and we
decided it could be
useful to organize a kind of tour of the major
seed producers here in the US', says August
Braaksma, account manager at the New
York branch. 'We put together a one-week
program and visited these companies. I can
only say it was extremely successfui.' The
combination of Braaksma's inside know-
ledge of the American market coupled to
sound research in the specific sector helped
open a lot of doors. 'I think the important
thing about the cliënt presentations was
that each of the Rabo people, myself, Huub
Keulen and Arend Heijbroek, had something
different to say and each could shed a dif
ferent light on the sector itself. It was so well
received, that we got some new business
immediately, and a number of other pros-
pects are currently 'germinating'. 'Braaks
ma would normally have undertaken such
presentations alone or with a senior man
ager from the New York office, and he be-
lieves that in some industries that works
very well. But the advantage of having sup
port from the research department is that
clients who may not be over-familiar with the
Rabobank name see that the bank has a
strong global commitmentto all areas of the
food and agribusiness. 'Our reports are par-
ticularly welcomed by companies,' he says.
'You know, the problem with a lot of the stuff
banks distribute to their clients is that it is
promotional rather than informative - it fo-
cuses on appearance rather than substance.
People are so impressed with our reports
that they're even prepared to pay for them.
That gives me the chance to provide a little
more background about us being a Dutch
bank by suggesting we 'go Dutch' on the
costs-that always gets a laugh', Braaksma
grins. 'But seriously, the reports are excep-
tionally useful. We use them in three ways.
One, in the office to bone up on figures
worldwide. The second use is when we visit
prospective clients - the scope and quality of
the reports helps us open the door a little
bit wider. Then there are our existing clients.
Were are often able to deepen our re-
lationship with them because we're demon-
strating a real depth of commitment to
global markets.' Although Rabobank is a re
latively new global player, all these new tools
help in promoting the banks know-how and
services to international clients. T'd say that
they enable us to do a better job when going
out to find new business', Braaksma con-
firms, 'and itencourages accountmanagers
like myself all around the world to work more
closely together so we can ultimately pro
vide our clients with better service.'
The seed tour was no one-off exercise.
Plans are currently in the making for a simi-
lar presentation on the other side of the At
lantic in which Braaksma will bring his US
know-how to major players in the European
seed industry in collaboration with col
leagues from the EC. Next year the focus will
be on the global dairy industry, and fruit and
vegetables will follow in the not too distant
future.
