Halal Market

“...The world is going Halal. All over France, foods marked Halal are growing in numbers. Halal meats are offered in many French public establishments such as school cafeterias. Cabot's Vermont Cheddar Cheese and France-Echos Paté de Foie de Canard (duck liver paté) have gone Halal. IKEA at Anderlect near Brussels has Halal hot dogs. McDonald's in Detroit has introduced Halal Chicken McNuggets while McDonald's in Australia has Halal burgers.....” Galliawatch, Saturday, 2 December 2006

The total number of Muslims is huge, a little more than one fifth of the world's populaton. Current world Muslim population is estimated between 1.2 billion to 1.8 billion or 18 to 26 percent of the world population spreading over 150 countries. It is claimed that Muslim is the fastest growing population in the world at a rate of 2.9 percent a year as compared to world population growth of 2.3 percent a year. At this rate, Islam would surpass Christianity as the world's main religion by 2023. Between 2000 and 2006, the average growth rate of the Muslim population at 1.9% percent is also far higher than the world's population growth rate, which averaged 1.22 percent in the same period. It is also much faster than any other major religious group.

Muslim population in 2006 is estimated at 1,596.59 million.

No one really knows how big the global Halal market is. Estimates are usually based on the number of Muslims in the market. There are also a lot of non-Muslims eating Halal meat. Current estimates to the value of the global Halal food market range from US$150 billion to US$580 billion* a year. Total global Halal products is estimated at US$2.2 trillion (RM$7.98 trillion) and is projected to grow by 10 - 20 % annually.

* - Based on per capita expenditure on food by Muslims. (source: various)

Super Basmati Rice

Pakistan is considering a proposal from the Indian government to jointly register basmati rice produced by the two countries though some of its farmers accuse India of stealing their ‘Super basmati’ seeds.

The registration is meant to profit from the vast EU market that is currently in the process of conducting DNA tests in Pakistan before moving on to India and Nepal. India and Pakistan are the world's traditional producers of basmati rice, with Nepal recently joining them.

The EU has sent a team to conduct DNA tests of basmati rice in Pakistan, India and Nepal to determine the EU's policy on basmati imports from each of these South Asian countries.

Some Pakistani exporters alleged that India had stolen a seed variety developed in Pakistan called super basmati. They said growers in collaboration with local institutions developed the seed here, and this variety was in high demand in the world market.

However, they claimed, a few years ago two Sikh pilgrims visiting Pakistan took super basmati seeds with them and started cultivation in India. Eventually, Indian farmers developed a strong super basmati crop and started exporting it.

An rice exporter was quoted by The Daily Times as alleging that this was “a clear case of piracy and should be should be barred from using the name super basmati & be challenged in Indian courts”.

The EU team will decide on the comparative quality of the Pakistani and Indian basmati. If the DNA tests conducted by the EU team show Pakistan's basmati rice to be of equal or better quality to India's, the European market will remain open to Pakistani rice exports. However, if the tests fail to show the rice is of a distinct quality, the EU could impose an embargo on Pakistani basmati.

Pakistan's rice exporters say that since India has registered its basmati in the international market, Pakistan should do the same under World Trade Organisation (WTO) rules. They have also complained that the government was delaying framing a “Geographical Indication (GI) law”.

The official said that the government was preparing a GI law to register farm and traditional products specifically produced or manufactured in Pakistan.

Pakistan has set a $2 billion rice export target for this fiscal. Rice exporters surpassed last year's $1 billion export target by exporting $1.2 billion worth of rice.
(excerpt: indiatimes tuesday dec 05, 2006 02:47:57 am)

Time drags when you are in a hurry..

Doing Business In Japan..

Small and medium-sized companies looking to penetrate the Japanese market, especially the food industry, should take a hard look at the country's rules and regulations and use trading firms to make their initial foray.

Japan, one of Asia's most prized export markets, is also one of the toughest nuts to crack. Stringent rules and regulations take time and resources that some smaller firms simply cannot afford. It is tough to get through in the initial stage, but once there the returns are worth all the effort. The rules and regulations changed very often in Japan and therefore food exporters to the country needed to keep themselves abreast of the changes. The recent changes that have been implemented are things such as hazards either from new agricultural chemicals, new additives or from global supply sources.

Japan is a prosperous country that must import a large amount of food to feed its 128-million population. The average Japanese household is estimated to have more than RM360,000 in savings and a disposable income of about RM13,600 per month. This provides a huge opportunity as long as a supplier can gain the trust of Japanese consumers.

It is necessary to go through trading firms if you are to enter the Japanese market. Many firms continue to encounter obstacles when exporting to Japan, including heavy restrictions on the ways the food is cooked and processed imposed due to fears of contamination. There cannot be any kind of foreign body in any of the consignment, as even a single foreign body - be it flies, bees, additives or any other thing - would mean that the entire consignment would be rejected. Microorganism specifications comprised the bulk of violations.

Another way to penetrate the market is to get locals spreading news of the product through word of mouth.

Asean's importance is self-evident; it has a population of 570 million, is rich in resources and is conveniently located near Japan, China, India and many other important markets. Asean is poised to become a major hub of production, feeding Asian and global markets.

Product labelling is another key aspect, where exporters must disclose all relevant information on the packaging. These include any health risks, such as allergies the product may cause.
(excerpt: mckinsey, nov 02 2006)