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Rabobank International's country banking strategy
Rabobank International's position in the USA
Rabobank-branded activities in Australia
36 Rabobank Group Annual Report 2003
Rabobank International's retail activities abroad are carried out under
the name country banking.The aim of the country banking strategy is
to export Rabobank's expertise as a retail bank for private individuals
and agricultural entrepreneurs in the Netherlands to developed
markets elsewhere in the world.This is done by acquiring smaller
financial parties operating in rural areas in developed markets and
with a strong position in the agricultural sector. In 2003, Rabobank
International worked successfully on the realisation of its country
banking strategy.
Two banks were acquired in the United States: Lend Lease Agri
business and Ag Services of America. Lend Lease Agri-Business now
operates under the name Rabo Agrifinance and offers long-term
financing to agricultural enterprises in the United States, secured by
land and the buildings erected on it. Rabo Agrifinance has USD 2.6
billion in loans and advances and employs 80 people.The listed
financing company Ag Services of America is specialised in harvest
financing, mainly to American corn and soy growers.The company
has since been renamed Rabo Ag Services.
Rabobank International is one of the main banks for the agricultural
processing industry in the United States. It is a market leader in
lending to the meat processing sector (particularly chicken and
beef), the cotton sector and the wheat sector,among others. It also
has a prominent share in the wine sector.
Through Valley Independent Bank in California, which was acquired
in 2002,and the recent acquisitions in the United States, Rabobank
International held USD 3.5 billion in loans to the primary agricultural
sector in the Unites States at year-end 2003, with a similar amount in
traditional lending to the processing sector.
An important activity of Rabobank International in the United States
is corporate finance. This activity includes enterprises outside the
food and agri-sector as well and involved around USD 9 billion in the
year under review. Taken together (food and agri-business, corporate
finance and operations in the capital market), Rabobank International's
activities in the USA accounted for virtually half of Rabobank
International's total profit.
The Australian activities likewise make a major contribution to
Rabobank International's results. In order to strengthen the platform
for further growth in the Australian market, it was decided in 2003 to
continue the activities of Primary Industry Bank of Australia (PIBA)
under the Rabobank brand. PIBA is traditionally an important financer
of Australia's primary agricultural sector. Rabobank has owned PIBA
since 1994 and its official name will become Rabobank Australia
Limited. PIBA's activities in New Zealand were rebranded in 1999.
Rabobank International has become market leader in the agricultural
processing industry in Australia and, thanks to PIBA's rapid growth, is
the country's third largest agricultural financer. In New Zealand,
Rabobank International has similar market positions.The successful
primary sector activities in Australia and New Zealand served as a
model for the country banking strategy, which is now also being
successfully implemented in the United States and in Ireland.
II
'2003 saw us enhance the professionalism of our
services and cooperation with the local banks across
the board. Our employees are better trained, our
product range has been extended and our processes
are geared to the specific needs of our clients.We are
without doubt the 'coming bank' in the wholesale
corporate market. And that can be seen not only in
the increase in our market share, but also in the title
of 'Corporate bank of the year'. A real achievement,
especially as it was the companies themselves that
awarded us the high score. This award also increases
our profile with companies that do not yet bank with
