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worldwide
WHAT'S NewS Issue 4 AprlM997
region in the process of huge
changes. 'Just five years ago
there was no private
investment in the former
'Eastern Bloc', everything was
still entirely state-owned and
our economies were central-
command based. Now, the
market here has gained huge
momentum and 50% of GDP
is created by the private sector.
In this relatively short period
of time the region has
undergone serious
restructuring. The challenge
for APFT is to be flexible
enough to anticipate this
rapidly changing market.'
According to Sandomierski,
the pattern of investment has
also changed. 'If you go back
five years, then you see our
involvement was more in high
margin products, projects
which concentrated on the
final stages of processing and
which were low investment
areas. By that I mean the
packaging and distribution
stages. So to keep pace with
change, APFT has cooperated
with industry, all the way
along the production chain.
This has led to more
involvement at commodity
level, which is the core of food
and agri-processing. For
example, one more recent
project financed the processing
of sugar into confectionary. A
couple of years ago, our role
would have been more in the
processing of semi-products,
i.e. the last stages of packaging
Six On the road team members together with some managers of American F&A sector companies.
amply demonstrated the bank's
capabilities.
AT THE FOREFRONT
'Most of the clients still saw
Rabobank as a lending
machine,' says Streefkerk,
'with maybe a trickle of trade
finance. But they were not
aware of the fact that we had
competence in all areas of
corporate finance in the food
and agri business. So it was a
very effective form of
communication. This road
show, for me, was an example
of how we can build up a
much better food and agri
business corporate finance
machine. It wasn't a selling
tooi but a marketing tooi - we
were simply trying to make 4
companies aware of our
existence. Clearly, there is a
market out there in strong,
mature F&A countries like the
US for the kind of value added
services we can offer - in fact,
actual propositions for projects
are already coming in now as a
result of the roadshow. This is
where we, as a specialized,
global food and agribusiness
bank, should be - at the
forefront of F&A financial
structures and services.'
at the right time. Our role in
this region is not limited to
delivering credit. We are
increasingly seen as a provider
of knowledge and expertise in
F&A. The development
process is ongoing at a rapid
pace here and we feel we can
help speed it up.'
ON THE ROAD
While the team is unanimously
quick to point out just how
strong its team work and its
know-how is, APFT appears to
have been hiding its light
under a bushel when it comes
to the US. It appeared that few
of the bank's numerous F&A
customers in this important
market for potential investors
in emerging countries were
aware of just how good we are
in this area (let's forget the
bank's usual tendency to play
down our achievements for a
moment). In January of this
year, six team members took to
the road, visiting over 35
American F&A companies, to
spread the APFT word. The
objective was to make
Rabobank the preferred choice
in the American F&A sector
and to market the team's
broad-based skills. According
to Streefkerk, it was a useful
APFT flag-waving exercise and
Thomasz
Sandomierski
the confectionary for the local
market.'
COMPETITIVE EDGE
No one doubts the potential of
Central and Eastern European
markets and no one questions
the fact that this is an
enormous market. Now, APFT
is looking for projects which
may have a competitive
advantage. For example
compared to Western Europe,
the meat industry in the region
offers low production costs
without the environmental
problems prevalent in the west.
'As a result,' confirms
Sandomierski, 'both Dutch and
Danish companies are starting
to show an interest here.
Another growth area is the
potato processing industry.
APFT has managed to be here
VERANDERINGEN BIJBENEN BIJ OOSTERBUREN
In Oost- en Centraal-Europa speelt het team in op de grote veranderingen van de afgelopen jaren. 'Nog maar vijf jaar geleden was^
alles nog centraal geleid,' zegt Tomasz Sandomierski.'Nu heeft de markt een enorme groeisnelheid. De uitdaging waar wij voor
staan: flexibel genoeg zijn om te anticiperen op de snelle veranderingen.'Het APFT zoekt projecten die wellicht een concurrentievoordeel bieden.
Groeimarkten zijn bijvoorbeeld de vleesindustrie en aardappelverwerking.
In de VS maakten zes teamleden een rondreis langs 35 Amerikaanse F&A ondernemingen. 'De meeste klanten zagen de Rabobank als een
leenmachine/zegt Niek Streefkerk. 'Ze wisten niets van onze competentie in bedrijfsfinancieringen op alle gebieden van de Food Agribusiness.'
