There is a real need
to develop this market
and make it more
ej leien: 5
PORK &f BEEF IN CHINA
Chenjun Pan:
Chenjun Pan
Food safety
As the sub-sector strategy - which has proved successful in
Europe- evolves into a global sector strategy, Rl is set to fully
tap F&A business potential in the rest of the world. And as an
initiative designed to service clients more systematically and
effïciently, the strategy revolves around a handful of carefully
chosen F&A sectors, each led by a global sector head. Jeroen
Leffelaar, Global Head of Pork Beef, is confident that Rl is in
the right position to fully develop the openings available within
his sector. "If you look at the Pork& Beef sector, it's all about
consolidation. We're seeing a greater level of M&A activity
involving clients from around the world, and our primary goal
is to increase our boardroom access to those clients, thereby
upping our M&A market share."
One of the key markets within this sector is the pork industry,
which has already produced a number of interesting global
transactions for Rabobank. Some of the greatest opportunities
can be found in China, where pork plays both an important
cultural role and an important strategie role, with the
government keen to ensure that the country's requirements
continue to be produced domestically. And with more than
50 percent of the world's pork produced, and consumed, in
China, the market is undoubtedly attractive forforeign players.
However, it's not only the size of the market that interests
outside players, but also the modemisation programme that's
underway across the industry.
Jeroen Leffelaar: "Self-sufficiency reigns in China's pork sector,
and traditionally a huge number of small farmers met the
bulk of the country's pork needs. Times are changing, though,
and the industry's changing for the better. We're seeing quite
a rapid move from backyard farms to large, more hygienic
facilities with properly housed and fed animals. Additionally,
China is introducing better-equipped slaughterhouses, many
of which contain state-of-the-art equipment. Rabobank can
particularly add value to Chinese clients with an international
outlook, either through financing the import of raw materials
for these companies or by handling the financing of their
exports. That is where our global knowledge and sector
intelligence is of benefit. Our insight into the local market is not
substantially better than most local banks, but clearly of great
help to our international clients keen to enter the Chinese
market.
In addition to creating a wealth of opportunities, industry
growth brings with it a number of challenges, Chenjun Pan,
a Senior Industry Analyst at Rabobank's Food Agribusiness
Research and Advisory (FAR) unit, says. She explains that one of
the main issues facing the pork industry in China is the limited
amount of available land and water resources, while food safety
issue 24 jul toto Rl WORLD
