SOURCE: Rabobank, N.A.

Rabobank, N.A.

July 16, 2014 16:00 ET

Rabobank Report Released on Global Dairy Environmental Regulation

The Goalposts for Global Competitiveness Are Shifting

FRESNO, CA--(Marketwired - July 16, 2014) - Environmental compliance costs have become an increasing concern for California dairies over the last decade. While regulatory costs are currently not a 'make or break' issue for most dairies operating in the Central Valley, it is a significant consideration for those considering new dairy construction or substantial expansion. This is a stark contrast when compared to two other dairy powerhouse producers; Holland and New Zealand. The former has a mature regulatory environment based on controlling inputs into the farm system while the latter is facing adoption of a new effects based regulatory regime. The environmental regulations of the three countries are examined in a new report from the Rabobank Food & Agribusiness Research and Advisory (FAR) group, titled "Competitive Challenges -- Environmental regulations are changing the rules of the game."

"California dairymen have developed a significant level of expertise integrating environmental management requirements into their business models," said Rabobank senior analyst Vernon Crowder, the report's co-author. "For example, the Central Valley dairies organizing to create regional well monitoring programs likely reduced overall costs by many times."

The report goes into great depth in each country examining current and proposed future regulations to create a relative competitive position for each.

"For Californian dairymen the greatest challenge in the future will be expansion," notes Crowder. "The balancing act of regulatory costs and potential economic gain will need to be watched carefully. Ultimately, California is too attractive a production region to abandon and producers need to be highly involved in current and future regulatory discussions so that they can positioned to adapt as necessary."

The full report is available exclusively to clients of Rabobank and to media upon request.

About Rabobank
Rabobank Group is a global financial services leader providing wholesale and retail banking, agricultural financing, leasing, real estate services, and renewable energy project financing. Founded over a century ago, Rabobank is one of the largest banks in the world, with nearly $1 trillion in assets and operations in more than 40 countries, and ranks among the safest banks in the world. A premier bank to the international food and agriculture industry and renewable energy sector, Rabobank has been financing the North American market for more than 30 years. The bank's Food & Agribusiness Research and Advisory team is comprised of more than 80 analysts around the world who provide expert analysis, insight and counsel to Rabobank clients about trends, issues and developments in all sectors of agriculture.

About Rabobank, N.A.
Rabobank, N.A. is a California community bank and a leading provider of agricultural financing and full-service banking products to California consumers, businesses and the agriculture industry. With nearly 120 retail branches, we serve the needs of communities from Redding to the Imperial Valley through a regional structure that promotes local decision-making and active community involvement by our employees. Rabobank N.A. is a Member FDIC and Equal Housing Lender.

About Rabo AgriFinance
As a leading financial services provider for agricultural producers and agribusinesses in the United States, Rabo AgriFinance adds value using industry expertise, client-focused solutions, and by creating long-term business relationships. Rabo AgriFinance offers a comprehensive portfolio of services that give producers the right products to prepare for, and take advantage of, market opportunities. Rabo AgriFinance representatives offer a wide array of financial services and knowledge to help customers realize their ambitions. This comprehensive suite of services includes loans, insurance, middle market agribusiness, input finance and sophisticated risk management products.

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