New Zealand - dedicated MARKETING new zealand 14 WHAT'S NewS Issue 1 January 1996 Northern Territory is a good example of broad-acre horticultural development. And this development was a decisive factor in opening our new Dar win office.' CROSS-SELLING OPPORT UNITIES The Northern Territory provides a fertile base for PIBA, particularly in terms of Around 60 percent of New Zealand's exports are based on primary products and the dairy industry is the country's largest single export earner. Most classes of livestock outnumber the human population of 3.4 million - just to give you a few examples: we have 3.6 million dairy cattle; 4.6 million beef cattle; and 57 million sheep. Given this dependence on agri- products, it was hardly surprising that the rural sector was hardest hit by the recession. There were a number of factors at work - government removed subsidies, commodity prices were low and interest rates high. This downturn penetrated the rest of the economy following the Crash of 1987. MARKET PENETRATION You may be wondering why land acquisition. 'We're also receiving increasing numbers of enquiries from very large family pastoralists around the country, but especially in New South Wales and Queensland,' he continues. 'We've already secured the business of a few accounts in excess of AUD 10 million. Generally, finance has been supplied to purchase large tracts of pastoral land. PIBA chose this moment to enter the market. Some may argue it was a high-risk decision; others that it was astute timing. By mid-1989, the worst of the recession appeared to be over. In addition, deregulation of financial markets meant we were able to offer New Zealand farmers the same loan facility that had been so well- received by their Australian counterparts. Besides these factors, entry into the market also offered us the chance to diversify our rural loan portfolio across this country's substantial pastoral sector, and especially in the dairy industry. MORE PHONES We started in New Zealand with branches in Auckland and Christchurch. Each had one lending manager. We staged a They'11 be used for beef production by enterprises with herds of up to 50,000 head. These pastoralists supply live cattle to export markets in, for example, the Philippines and Indonesia. And processed meat to the Japanese and US markets. This means there may be international cross-selling opportunities. Even though couple of promotional events and did some media advertising. But we were hardly prepared for the response. We had one phone in each office and both started ringing non-stop. So we ordered in a few more phones and back-up lending staff from Australia to handle the initial rush of inquiries. OFF-THE-SHELF PRODUCT Six years on, and we are already an established part of the New Zealand rural lending scene. We are the only niche rural lender here, which gives us a unique marketing advantage. PIBA was also the first bank to offer farmers an 'off the shelf', competitively priced, highly flexible rural loan facility. It provides a range of variable and fixed we're focused on primary producers, we're always aware of the other products we have to offer through RAL. That's what being part of a Group is all about. And since the acquisition, we've really feit what it means to be part of a strong, focused agribank like Rabobank.' Staff grew by 25 percent (28 persons) in 1995 and is still growing. interest-rate pricing options. The result of this focused, dedicated marketing is two new branches, one in Palmerston North, the other in Dunedin, to better service the southern half of both islands. Now our staff has increased to 14 and we still have back-up support from Sydney. CONSIDERABLE COMFORT To come back to the high-risk decision/astute timing question, I think in retrospect we can certainly say it was astute timing. Our acquisition by Rabobank also gave us momentum. The move was well-received by the market here. It gives existing clients and prospects considerable comfort to know we are a full subsidiary of one of the world's 40 largest banks, one of the three with a Triple-A rating, and the only one with a committed international food and agribusiness focus. When PIBA entered New Zealand's rural lending market in 1989, the country was tracking along at the bottom of one of the worst recessions in recent history. Just over 10 years and a whole program of bold economie reforms later, and New Zealand has been transformed from one of the most regulated to one of the most deregulated economies in the Western World. PIBA manager Ron Lander reports. NIEUW ZEELAND Toen PIBA zich in 1989 op de Nieuwzeeiandse markt begaf, en daarmee ook in de landbouwsector, verkeerde het land in een diepe economische recessie. Halverwege dat jaar trad alweer een herstel in. Door deregulering van de financiële markt was PIBA in staat de Nieuwzeeiandse boeren dezelfde financieringsprodukten aan te bieden als hun Australische collega's. De bank heeft inmiddels haar portfolio uitgebreid met financieringen in de veehouderssector en de zuivelindustrie. Als de enige agrarische bank in Nieuw Zeeland neemt PIBA een unieke positie in. De stap om in Nieuw Zeeland te beginnen kan achteraf dus als een goede timing worden gezien.

Rabobank Bronnenarchief

blad 'What's news' (EN) | 1996 | | pagina 14