“Today, we are working with the Middle East, which continues to be a very important market for us, especially in the Islamic financial and halal products segments,” he added.

On export prospects, Mukhriz said the region looked promising, with the United Arab Emirates importing RM12.86 billion from Malaysia last year followed by Saudi Arabia (RM3.97 billion) and Iran (RM3.21 billion).

“When there is a drop in demand from traditional markets such as the United States and Europe, the slack would be picked up by countries like China, Middle East and Japan,” he told reporters after officiating a seminar on the Jebel Ali Free Zone at the Malaysia International Halal Showcase 2012.

JAFZA is the only free zone in the world, which is located between two mega logistics enablers, namely Jebel Ali Port and Al Maktoum International Airport.

Meanwhile, JAFZA Deputy Chief Executive Officer Ibrahim Aljanahi said to date, there were 15 Malaysian companies operating under JAFZA in Dubai, including herbal energy drink developer Power Root and construction and engineering provider, Ranhill.

“JAFZA has an objective to set up incubation centres for Malaysian small-and-medium enterprises there.

“We are in talks with a number of Malaysian agencies to find the right party that will be entrusted in the business community, mandated to increase exports from Malaysia and provide ground support for the SMEs,” he added.

Ibrahim said they would like to see entrepreneurs from the region take advantage of emerging opportunities in the Middle East, through JAFZA.

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By Didier Gazanhes and Alexandre Leoty

There is no religious aspect for this move to Halal logistics, it is only about the business of working in the Halal sector. The idea was officially launched in 2012 by the Port of Marseille, when the launch of the ‘Hub to Hub Halal Logistics’ was set up with Port Klang. At the time the director of business development, Dick Becquart was highlighting the potential of the sector and how the Halal logistics required specific set up that is not yet available. The idea is to set up Halal logistics in the way it is already available for the Kosher industry. Indeed if the product is certified the logistic service should also be certified. For the Port of Marseille, the market and opportunity is huge, since it could allow the Port to serve a potential target of 220 million consumers across Europe and the Mediterranean region.

Three warehouses at The Feuillane

After a year of working with this initiative, the sector is already very active. Quietly, but surely, TIOS Group, through Caroline Couronne’s work, is lobbying the sector under the mandate of the Malaysian Government in order to convince local economic players, and first of all logistic players, to develop HALAL. ‘Marseille has been identified by Malaysia as the ideal platform to develop HALAL activities. This city cultivates a deep relationship with the Muslim world and the Mediterranean culture.” Within this promotion task, Caroline Couronne has found a natural ally with the Port of Marseille. “The Port of Marseille does not have the ambition to be HALAL but to be a facilitator, in order to facilitate incoming HALAL flows from Asia and Latin America and outgoing flows to Mediterranean markets.” “ It is up to logistic companies to transform their warehouses with Halal facilities” he says.

Import and export flows

So what do logistic companies really think about this? In 2010, SDV expressed its interest. “As a major transport company we cannot ignore the HALAL sector. Currently we do not have any specific warehousing, we label HALAL products for Carrefour through our Rungis facilities. We are currently studying specific certification possibilities and the necessity to have a specific HALAL Warehouse”. Does it need to be in Marseille FOS? What would be its size? Is there enough HALAL trade for us to spend in this market? We are completely disconnected from the religious aspect, we are a logistic provider, and we are simply trying to adapt to this new opportunity. If the need is real, we will offer the necessary value-added services to our clients”.

What about HALAL Production?

Beyond HALAL Logistics, can France and Marseille become a HALAL Producing country and region? The Marseille Promotion is organizing a meeting this coming week to develop this initiative to local industrial players. We are currently thinking about this opportunity for across the board activities, says Eric Sermerjan from Marseille Provence Promotion. Halal Business will make noise for a long time in Marseille.

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Islamabad—Red meat export from the country has the potential to surpass US$ 500 million mark during next five years by complying with the international codes which is presently stood at around US$ 100 million.

Between 2001 and 2009, the global beef trade grew at an average of 10.4 per cent to reach just over $30 billion, according to data available from the UN Food and Agriculture Organization (FAO).

Member Export Committee of Islamabad Chamber of Commerce and Industry (ICCI), Ahmad Jawad said in a statement issued said that it looks very pathetic that Pakistan’s market share within this rapidly growing market is only 2.9 per cent.

However, he said Pakistani exporters seem to be determined to make up for the lost time. During last six years Pakistani red meat exports have risen by an average of 68.6 per cent a year.

Jawad said that the Halal food market, at just over $640 billion a year worldwide, is one of the largest opportunities in the food and agribusiness sector and plays to the unique advantages of being based out of Pakistan.

Halal and organic are now used interchangeably, fueling the growth of the former more strongly. Halal meat is also one of the fastest growing segments within the global food trade.

With the advent of more and more new players and with surprisingly robust support from the government, Pakistan is set to become one of the largest players in the meat trade, at least within the Middle East and Southeast Asia.

He informed that three countries with the largest market shares are Australia, Brazil and India, each of which has considerably higher shipping costs to these export markets compared to Pakistan that can get benefit of it.

“Pakistan has extraordinary natural strengths, the country also faces infrastructure shortcomings which alter the ability of many Pakistani businesses to effectively compete against firms from Australia, Brazil or even India,” he added.

Taking the tentative first steps towards becoming a major international player in the Halal food industry in which the country has a strong competitive advantage the global red meat trade and can earn a huge foreign exchange.

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SINGAPORE, Sept 19 (Bernama) — Premier logistics company, Kontena Nasional Bhd, sees significant growth in halal logistics.

Chief Executive Officer Hood Osman said the company was definitely growing in the halal aspect of the business.

“Kontena Nasional is moving towards leading the market. In 2012 and 2013, we are going to sustain our market approach and the target, to me, is to be the leader in the halal logistics market.

“We’ve increased our halal warehouse, (we) started at two and up to June, we already have 14 halal warehouses, the growth is significant,” he told Bernama via teleconference from Kuala Lumpur.

Kontena Nasional’s warehouse was the first to obtain the certificate from the Department of Islamic Development Malaysia (Jakim) to store halal products.

In terms of halal, Hood said: “Right now we are talking to Port of Rotterdam (in The Netherlands) for a link up and we are also talking to Thailand and Indonesia.”

Right now, he said, Kontena National catered more for domestic logistics requirements, which is about 80 per cent.

“We do help SMEs to export to Europe, Thailand and Indonesia. It is a small scale about 20 per cent of the halal revenue.

“So I would say if we are able to tackle the export side and expand with Indonesia, Thailand and also into Europe, the percentage would be much higher,” he added.

– BERNAMA

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JEDDAH – The world Muslim population is approaching 1.8 billion persons, or roughly one-quarter of the entire world’s population. Muslims are expected to account for 36 percent of the world’s population by 2025.
Presently, Southeast Asia and the Middle East are the two strong markets for Halal food products (HFPs). Major US poultry processors export to these markets, whereas secondary suppliers provide beef. The primary sources of beef in these markets are imports from Australia and New Zealand.
Southeast Asia is home to more than 250 million HCFPs consumers. Indonesia, Malaysia, and Singapore have had regulations to control export HFPs for a number of years. Recently, Thailand, the Philippines, and other countries have realized the value of HFPs. Their governments have formulated regulations to promote both exports and imports.
Saudi Arabia, United Arab Emirates, and other Middle Eastern countries are net importers of processed foods both for personal consumption and retail markets. North Africa and other African countries also offer opportunities for export of processed food as their economies and political conditions improve.
Bangladesh, India, Pakistan, and Sri Lanka are home to almost 1.3 billion people, of which over 400 million are Muslims. Although this region is an agricultural economy, these countries do import certain processed items, especially for food service.
In the early1990s, the potential of the Southeast Asian and Middle Eastern markets for HFPs started to be realized, leading to an increase in the production and certification processes. This has expanded into South Asia, the Mediterranean, Europe, and Central Asia. Even Muslim-minority countries such as Singapore and South Africa have shown that the HFPs business is good business. Although the Muslim community forms only 16 percent of the 3.8 million population of Singapore, the halal food industry is big business. McDonald’s, A&W, Kentucky Fried Chicken, and Taco Bell are some of the major international brands that have gone 100 percent halal. Muslims living in western countries and the addition of Westerners to Islam is resulting in some changes in the behavior. Muslims now requesting food products that meet their dietary needs.
Below are the geographical developments in the global halal market:

Asia
While Asia has the largest Muslim population of any given region, its population has modest per capita incomes, and hence lower total food consumption than other areas. In 2006, the Malaysian Halal Industry Development Corporation (HDC), was formed to coordinate the development of the Halal industry, focusing on standards, audit, certification, plus capacity building for Halal products and services.
Malaysia, Thailand, Singapore, the Philippines, Brunei, China and India have all taken steps to tap into the global Halal meat market. The Singapore food industry has also taken a number of steps toward becoming a Halal meat hub, including an ongoing strong advertising campaign in the Middle East. Thailand has moved to become a recognized center of excellence in science and testing. Brunei is currently co-operating with Australian companies to combine its role in the Muslim world with Australia’s track record in safe, high quality food production.
The Chinese Halal industry has the key advantage of cheap labor. China recently signed a Memorandum of Understanding with the European Commission (EC) and already has several EC-approved companies ready to export Halal products to European markets.

Europe
Europe is seen as an important market for Halal products on the basis of higher purchasing power. Furthermore, non-Muslims’ willing to purchase HCFPs on the basis of the belief that such products are safe.
Figures vary considerably with industry estimates for the global Halal food market ranging from $240 billion to $810 billion. Estimates on the size of the European Halal food market also vary, but in 2006 the USDA Foreign Agricultural Service suggested a conservative figure of $21 billion.
Muslims across Europe have far higher consumer spending power than those in the Middle East and North Africa with second and third generation European Muslims seeking out convenience and looking for products such as Halal pizzas, lasagna and hot dogs.
The port of Rotterdam has been officially designated as halal at the World Islamic Economic Forum (WIEF) and has dedicated warehouses solely to halal products and toward ensuring they do not come into contact with non-halals.
France has the largest population of Muslims in Europe estimated to be 5 million Muslims and as such is the largest market for halal products among non-Muslim countries. The value of the French market for halal products has been estimated at over $17 billion.

The Middle East
Middle East countries, especially members of GCC, have higher incomes and consequently higher per capita rates of consumption. In addition, the region imports 80 percent of its food requirements.
Saudi Arabia and the United Arab Emirates (UAE) are seen as the most important markets in the region. Currently Brazil is the largest exporter to the two countries followed by the EU and the US. Saudi Arabian companies involved in the halal industry include Al-Radwa Farms, Al-Watania, Supreme Foods, Nash Meat and Sunbullah.
UAE companies involved in the halal business include Al-Islami Foods, Al-Babeer, AlAreesh, Arctic Gold, Royal Meat and Emirates Meat. Turkey has a good potential as supplier of halal products, particularly to EU counties. Egypt was recently seen as the most important market for halal food in North Africa. However, it has been noted that the “complex regulatory system” in Egypt has led a number of potential suppliers to serve the market through investment rather than exports.

The United States
Muslims in the US, as of 2009, are estimated at 15-16 million and they are spread all over the continent in cities both large and small. In the US, major halal food markets are in – New York City, New Jersey, Los Angeles, Chicago, Detroit, Houston, Dallas/Fort Worth, South Florida, San Francisco. According to one estimate, the buying power of Muslim consumers in North America was worth $19 billion in 2009.
A Kansas company launched a line of halal frozen pizzas, an Ontario company has an extensive line of frozen halal meat, poultry, and other products. Most meat companies used to make HFPs only for export. Now, small- to mid-size companies are producing halal products exclusively for the domestic US and Canadian markets.
As with everyone else, Muslims have a very busy life style. Increasingly, daily activities at work and home do not allow them to prepare meals at home. Muslims, like any other segment of population, are involved with their jobs and other away from-home activities and demand on their time has increased. Consequently, availability of halal prepared foods will serve a very useful purpose.
Vending is another area where a tremendous opportunity exists for halal food. Items such as sandwiches, hot meals (such as beef stew and soups), cookies, cakes and rolls, ice cream, and candy could be made available in places where the concentration of Muslims might not justify other types of foods. Halal food vending can also be considered for cafeterias in schools, colleges, hospitals and places of business with lower concentrations of Muslims.
There are over nine thousand grocery items on the typical shelves of North American and European supermarkets, and many more are being added daily. Muslims are making their decisions based on the ingredient information on the labels and increasing number of food processors are adding halal labels on their products.

Challenges Ahead
However, becoming a leader in halal supply chain for Malaysia is not an easy task. Today, the major challenges involved in halal supply chain comes in 3 main forms:
• Developing Consistent Processes
• Use of Information Technology
• Adopting to changing needs

Consistent Process … from Farm to Table
The complexities of the halal supply chain extend to include the business logistics. Investors need to be well versed in the Islamic ethos in order to preserve the “halal integrity” of food products. With the legitimacy of some products coming under fire, the industry is now demanding more conformity.
The HFPs industry should adopt a “farm to table” steps presenting opportunities for various businesses including ports, shipping and freight forwarding, warehousing and handling facilities. With global standardization in the certification process many producing countries are moving ahead more than the Eastern major consumers.
Meat and livestock business in Malaysia and Australia, for example, had launched HFPs brands in the Middle East in recognition of the growing meat retail market in the Muslim world. This response has already brought impressive dividends. It is estimated that in 2010 Australia exported 51,151 tons of mutton, 19240 tons of lamb and 5,826 tons of beef valued at $325 million.
The usual requirements of ensuring an adequate infrastructure to transport, store and market fresh produce such as cold chain management are also on the top of MLA’s priorities for halal meat. It is believed that Indonesia and Malaysia with help GCC businesses in Islamic ethos and direct investments could take the lead in this area by developing standards of measuring and ensuring compliance in the entire halal supply chain.

Adapting to changing needs
Halal supply chains include stages from procurement and preparation of genuine halal ingredients to the manufacturing and delivery of final products to customers.
This includes the separation of halal ingredients from non-halals such as alcoholic or pork-related products, throughout the entire chain. Similar measures need to be adopted in other areas such as transporting halal fed animals to slaughterhouses or shipping chilled or frozen halal meat in enclosed shipping containers. This makes it necessary to create a collaborative network, whereby GCC businesses would have entry points. There is increasing need to ensure that knowledge be multiplied and taught to expand awareness and skills.

Conclusion
The logistics of the HFPs industry show a dynamic market in the Muslim world. Halal products’ rate of growth, undoubtedly, indicates areas creating opportunities for investment and food national security. HFPs and their supporting service providers will have to work harder to ensure participants meet halal requirements.

About Supply Chain Asia
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David Palmer said the cruelty and mistreatment filmed in Indonesian abattoirs in March and broadcast recently on Four Corners was inexcusable. ”We’ve simply got to fix it,” he said.

”I’d be the first to line up to have a conversation with the Senate or some other properly convened inquiry. And have a conversation with them and the Australian community, as we try to explain the market relationship, the uniqueness of the relationship [and] the importance of the bilateral relationship,” he said.

”I want to have an engagement free of, as much as possible, free of the enormous emotionally charged atmosphere that this current debate is embroiled in,” he said.

After 5½ years as MLA’s managing director, Mr Palmer will leave the post in about a fortnight. He resigned late last year.

In an interview with The Age, he likened the upheaval to hit the industry since the images were broadcast to being caught in ”an Oklahoma twister and I don’t know where it’s going to land”.

One week after the broadcast, the federal government suspended the export of live cattle to Indonesia for up to six months so the problems could be addressed. The trade with Indonesia last year was worth $319 million.

The live animal export trade is a big earner, with last year’s trade for meat consumption valued at just over $1 billion. A further $150.6 million of dairy cattle for breeding and milk production were also exported.

Mr Palmer said the live trade with Indonesia was an ideal trade link between northern Australia and Indonesia. ”It is arguably the most complementary business model the Australian beef industry enjoys anywhere in the world,” he said. ”And that is; feeder cattle in northern Australia, [followed by] short voyage to an 80-to-100-day feeding program, and the resultant carcass is brilliant. And it comes at a very affordable price. This is a very efficient supply chain.”

”This is a beautiful food market right on our doorstep and it’s good for Indonesia and it’s good for Australia. And we’ve simply got to rectify the problem, we’ve got to get the politics out of the whole thing and try to have a calm head and a gradual reopening, and it needs to be done as fast as possible,” he said.

Meanwhile, an email sent by MLA’s live export manager Michael Finucan to cattle importers in Indonesia outlines a raft of measures the industry has taken in response to the animal cruelty filmed in some abattoirs in March. The email said training would be delivered in four Indonesian cities this month.

”There will be 30 AWO [animal welfare officers] trained by the end of the program with regional provincial livestock departments and MUI [Halal regulators] representatives attending to ensure local official and cultural engagement.

”The program covers animal handling training, Halal slaughter practices, standard operating procedures, hygiene and stunning butcher training,” it said.

Once trained, the animal welfare officers would provide training to other workers and ”ongoing assessment and monitoring of abattoirs”.

To improve abattoir standards, Mr Finucan said ”a team of eight stock-handling experts have been conducting intensive training programs in 10 key facilities over the past 10 days. The team is a mix of young stockmen with cattle station backgrounds through to experienced slaughtermen and abattoir managers who have worked throughout Asia for the past 20 years.”

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Wodonga abattoir processes 1.2 million goats, sheep and lambs for the international market each year.

It also butchers 40,000 cattle that are primarily used at McDonald’s and Burger King outlets in the US.

As many as 30 frozen containers of Halal approved meat leave the abattoirs for the rest of the world each week.

The company also employs about 400 from boners to cleaners, engineers and chemists to forklift drivers.

Yesterday its general manager, Jon Hayes, and member for Indi Sophie Mirabella gave the operation as an example of regional businesses threatened by the carbon tax.

Mr Hayes said the workers were worried about their jobs, too.

“This business runs on tight margins, margins that cannot afford to have to pay an extra $1 million or $2 million a year,” he said.

“Our workers feel the same, they know this threatens their jobs.

“We are exporters connected to farmers and agriculture, why are we being penalised?

“If the carbon tax is $40 a tonne it will cost us $2 million a year, if it is $20 then it is a $1 million.

“Our global competitors do not face these charges.”

Mrs Mirabella, the opposition spokeswoman for industry, innovation and science, said Prime Minister Julia Gillard continued to ignore the pleas of regional businesses.

“This carbon tax will affect a business here, a successful local employer of 400 people, an exporter and a company that also contributes to our farming community and transport industry,” she said.

“It is going to increase the costs to this business and put in jeopardy their ability to compete internationally.

“And yet we hear the Prime Minister ignoring the pleas of abattoirs, of food producers, of food and grocery manufacturing.”

Mrs Mirabella said the Coalition’s plan would encourage innovation to reduce carbon emissions.

But she was unable to say whether it would deliver a 5 per cent reduction in greenhouse gases by 2020.

“The Coalition policy is to not tax the community or business but provide incentives to reduce emissions, be smart, plant more trees, improve our soils,” she said.

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We will check imported foodstuffs at 27 entry points. We have mobilized adequate number of employees for the purpose, including 100 staff members who had undergone training abroad, he told Al-Watan Arabic daily.

He said all entry points would be linked with SFDA headquarters through an electronic system. The SFDA will take over all laboratories and customs inspection centers for foodstuffs from the ministry on Jamad Al-Thani 1 (May 25), he added.

The authoritys task is stupendous as the Kingdom imports 60 percent of its food requirements.

Alkanhal attributed the growing number of food-poisoning cases in the Kingdom to unqualified workers at restaurants. About 99 percent of workers at restaurants in the Kingdom are foreigners and most of them are not qualified to do the work. This is the main reason for food poisoning, he pointed out.

He said about 5,000 food-poisoning cases are reported in the Kingdom annually. Well introduce an advanced warning system to ensure food safety round the clock, he explained.

About 20 percent of world population suffer from food poisoning, Alkanhal said and urged Saudis and residents to inform the authority about suspected cases and symptoms.

The authority has contracted with a German company to develop laboratories. We have allocated SR750 million for development programs over the next three years, he said, adding that the agreement also covers development of new inspection methods.

The SFDAs development projects include construction of new buildings and laboratories and installation of advanced equipment and training of staff at reputable international laboratories.

The SFDA recently launched a national center to monitor the safety of medicines that are being sold in the Kingdom. The new move is expected to prevent unauthorized entry of medicines and medical compounds into the country. All powers related to medicine sales would be transferred to the center in coordination with the Ministry of Health. The center will also check herbal medicines that are widely in use in various parts of the Kingdom.

According to the new bylaw, all medical equipment and products being imported to the Kingdom should comply with the conditions set by the authority. Well start implementing the new bylaw within the next few months, Alkanhal said.

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