October 25, 2006

Rabobank to finance Chinese dairy industry

Rabobank would finance the dairy industry in emerging markets like China instead of those in the EU and the US, said a global dairy specialist with the Dutch-based bank. 

The move was intended to create a share in one of the largest agricultural and food markets of the world and also for the bank to get a hold of the Chinese rural financial market. The bank's market orientation and growth strategy was in tandem with China's emphasis on agricultural development, noted Zwanengerb.

The bank was also reportedly preparing to finance the enterprises directly and the farmers indirectly by way of tying up with rural financial institutions.

In the past five years, the demand for Chinese dairy products, had gone up two-fold and the retail value increased 20 percent at a compound rate.