The tie-up with Rabobank
gives BGZ direct access
to the Dutch banks extensive
global network and its
abundance of knowledge
and expertise
Caroline Steenvoort
COVER STORY
Head of European Retail Development
The fact that BGZ is nowfully part of the Rabobank family
provides great opportunities. As the BGZ organisation
connects to the Rabo network and knowledge bases,
you can clearly see an upward learning curve in both
organisations. For instance, at Rabobank we are gaining
experience in leveraging Poiish operations to the full
benefit of Rabobank Group entities. But also at strategie
level we are gaining insight into the different topics
we have to manage in other (European) markets, such as
multi-distribution: should we deal with a franchise concept
or not? At the request of BGZ we had extensive discussions
about whether this would be a wise thing to do. Ultimately
it was decided that we needed to prioritise things and
concentrate on the existing BGZ branch network. Certain
elements of this discussion are definitely of value for similar
discussions outside of Poland."
"BGZ also provides a good platform for cross-selling
products in the Poiish market. BGZ and De Lage Landen
(DLL) recently established a joint venture called 'BGZ Leasing'
with predominantly the SME market as the cliënt target
group. Furthermore, there is co-operation with Athlon Car
Lease (part of De Lage Landen International) to manage
companies' fleets, including BGZ's own fleet. And as from
last year, BGZ is also selling Robeco (Asset Management
company and full Rabobank subsidiary) funds."
'The strategie partnership with Bank BGZ is of course also
creating many opportunities for our Dutch operations.
Given that the Netherlands is the biggest investor in Poland,
there are a lot of trade and financing possibilities, and we
want to be part of that along with our local member banks.
It is also crucial for our business that we are better able to
support our Dutch customers beyond the Netherlands,
for example, in Poland."
growth predicted in both the corporate and small and
medium-sized enterprise sectors.
In the first quarter of 2007, the Poiish economy recorded
GDP growth of 7%, more than twice the EU average.
Poland has enjoyed seventeen straight years of economie
expansion, fueled by strong export output, individual
consumption and rapidly rising business investments,
including new Foreign Direct Investment (approximately
USD 15 bln in 2007, 85% of which from inside the EU).
The Netherlands is amongst the most important foreign
investors, with companies such as Philips, Shell, Raben and
NijhofWassinkclambering to invest. 'This rapidly increasing
Dutch investment flow is just one of the opportunities for
the Rabobank/BGZ combination." And with its relatively
young and well-educated labour force, growing middle
class, favourable regional location and its sizeable market,
Poland is not likely to see a slowdown in investment in the
foreseeable future.
Change ahead in F&A
And very importantly for Rabobank, after decades of under-
investment, the Poiish agribusiness sector is poised to
undergo dramatic changes. With the help of EU subsidies,
Poiish farmers are modernising and increasing production,
with the sector set to see a 35% increase in farmers' income
by 2010. Rabobank/ BGZ's combined expertise on Food and
Agribusiness will be a huge advantage as the F&A sector
modernises. The Poiish agribusiness sector currently employs
16% of the labour force, but only generates 5% of the
country's GDP, a clear sign of low productivity. But EU
accession has allowed Poiish farmers to benefit from billions
of euros in subsidies since 2004. In that first year alone, Poland
also saw food exports to Western Europe jump more than
40%. And the EU has committed financing 50% of farm
modernisation costs. This will have a dramatic impact on
agribusiness production and income in the next few years.
With so many opportunities on the horizon, the Rabobank's
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THE WORD
