Becoming the bread basket of Muslim Asia

This coming Thursday, 8 August, marks Eid-al-Fitr, the end of the month of Ramadan, when the 30-day long dawn (Sahour) to dusk (Iftar) fasting is broken with celebratory feasting.

Followers of Islam believe that fasting helps them learn patience, modesty, and spirituality. The month-long fast is maintained by serving meals before sunrise and after sunset, and eaten with family or neighbours.

The Sahour and Iftar meals usually contain fruits, vegetables, breads, pastries, meats, legumes, soft drinks, yogurt and cheeses.

What better time than Ramadan for Australia's food growers and processors to quietly reflect on just what percentage of a typical Muslim Malay, Indonesian or Indian's dining table is occupied by Australian made or grown foods?

Sadly not a significant percentage if my time in Kuala Lumpur is any guide.

The world is staring at a serious challenge in the coming decades, as global food demand is poised for unparalleled growth.

As global population ramps up from seven to nine billion people by 2050 and may nudge 10 billion by the century's end, it is worth noting that most of this growth will occur in developing countries, especially in urban areas, which will soon be home to 7 out of every 10 persons in the world. Furthermore, the growth rates of today's low- and middle-income economies are expected to canter along by more than five percent annually. This is three times faster than today's advanced economies.

And the epicentre of middle class growth is right on Australia's front yard.

The mixture of population expansion, income growth and internal migration from rural to urban centres will drive demand for diets that are more varied and more energy intensive to produce. Higher-income urban dwellers demand a greater variety of foods and especially more processed foods.

While human consumption of basic crops such as grains and pulses may soften, the demand to grow these crops for animal feedstock only increase.

Against this backdrop, overthrown Prime Minister Julia Gillard's recent call for Australia to become the food bowl of Asia makes perfect sense.

Australian agriculture can, will and must play a significant role in addressing the demands of a growing population in Asia, both as an exporter and as a source of innovation.

This issue was canvassed as part of the Australian Government's $1 billion Industry and Innovation Statement: A Plan for Australian Jobs, which seeks to ensure the Australian food industry develops the capacity and capability to take advantage of business opportunities in the Asian Century.

One prong of this strategy was to create Food Innovation Australia Limited (FIAL), an industry-led, government funded initiative to accelerate commercially-driven collaboration and innovation in the Australian food industry. FIAL, is still in its neonatal state and is currently seeking two General Managers to "lead and facilitate collaboration between businesses, research and educational institutions, food industry associations, food supply chain participants and government service providers in the food industry to take advantage of business opportunities in local and Asian markets".

Undoubtedly any applicant for the "General Manager – Market Development" position - one of the two job vacancies advertised - will be mindful that Australia's thinking must move from growing food for export towards one of growing and manufacturing food to satisfy significant market segments.

And there are very few market segments to focus on more important than the market for Halal Certified or Complaint products.

So what is "Halal"?

Food that is prepared in accordance with Shari'a Law is deemed "Halal" or "permissible". Those that do not conform to these guidelines are prohibited (these are termed "Haram"). Prohibited items under Islamic dietary laws include: swine/pork and its by-products, animals improperly slaughtered (regardless of whether they are Halal or Haram), alcohol and intoxicants, carnivorous animals, birds of prey, land animals without external ears, blood, contaminated foods and foods containing questionable ingredients such as gelatine, emulsifiers and enzymes.

As the world's Muslims are mostly located in the Asia-Pacific region, both majority and non-majority Muslim countries in this region would have high demand for Halal products. As would many non-Muslims in those countries.

A recent publication exploring the market for Halal in the Muslim world is Marketing Halal: Creating New Economy, New Wealth, by Liow Ren Jan, a publication endorsed by the Halal Industry Development Corporation, Malaysia's peak Shari'a compliant certifier.

The role of the HDC could serve as a template for any potential General Manager seeking to give Food Innovation Australia a reason for being.

The HDC, established 6 years ago this September, after all, leads in the development of Halal standards, audit and certification procedures in Malaysia. It coordinates the development of the Halal industry, which it achieves primarily through building capacity for Halal products and services, developing solutions for the Halal industry and promoting and facilitating the participation and growth of Malaysian companies in the global Halal market.

HDC – hopefully like Australia's FIAL - plays a vital role in developing the nation (in this case Malaysia's) Halal industry because it acts as a reference point and is the first contact spot for agencies and companies interested in entering the Halal space. The complexity of the vast Halal value chain, from Islamic financing to export promotion – is simplified by HDC's services as a one-stop centre where businesses can seek advice on best practices and get the best value for their investments in the Halal market.

HDC is currently the only government-mandated company in the world tasked with coordinating and developing the national Halal industry.

Not for long hopefully.

HDC's promise is to help businesses access new markets both in Malaysia and abroad. For businesses, it means Halal is the avenue for new markets with the help of HDC and its agencies. For consumers, it means that with the growth of the Halal industry, they will have increased awareness and better choices on Halal goods. And finally, for the government, with new markets reached through Halal, it translates into economic growth.

While the author Liow Ren Jan dwells on Malaysia's place in the global Halal marketplace, the book would be an excellent read for Australian managers in both government owned organisations tasked with "food innovation" as well as policy wonks in the Department of Foreign Affairs & Trade; Austrade and food industry managers and entrepreneurs generally who are interested in lifting Australia's game in marketing (especially) value added foodstuffs to our near neighbours.

So why should Australia focus laser-like, on Halal certified exports?

Hasan Mulani of New Delhi's Indian Muslim Observer explains that

Islam is one of the largest and fastest-growing religions in the world; over 25 per cent of the world's population - about 1.75 billion – follows the teachings of the Prophet Mohammed.

Traditionally, Halal food and beverage products were offered in small Halal or ethnic "corner" stores. But late in the 20th and early 21st century a universal shift in the demand & supply chains of Halal food products emerged. Every day, the demand and supply gap of Halal is widening thanks to quality and safety provided by Halal foods.

Now as Halal products have gained a greater appreciation in Europe and the Americas, they are being increasingly introduced to mainstream supermarkets and hypermarkets. The expansion of Western-style retail food settings in Africa, the Middle East and Asia has prompted companies to supply Halal food products through such chains in addition to traditional small ethnic specialty stores.

According to the World Halal Forum (2009), the market (in $US billions) for Halal products for 2009-2010 was as follows:

It should be stressed that Halal consumption is not limited only to Muslims; according to a 2011 Government of Canada report, other consumer groups are seeking Halal food due to its marketers positioning of Halal food as healthy, safe and reliable products.

The study found that "currently, there is plethora of opportunities for Halal-certified food products in non-majority Muslim markets like Europe and Australia, where consumers are looking for safe and ethical products. Russia, France and the UK drive the increasing popularity of the Halal market in Europe. The Halal market in these countries has continued growing since 2004, albeit at a slower pace than Asian markets. A major opportunity can be found in the Australia/Oceania region, where the Halal food market saw growth of 33.3% between 2009 and 2010,"

In the context of Australia's neck of the woods, the study claimed, "key Halal markets include India, which has mammoth size food safety concerned population that….encompasses over 177 million Muslims and China (with) 23 million Muslims".

In order to appeal to Muslim shoppers, both at home and abroad, Australian food growers and manufacturers need to have their products certified as Halal. This means an Islamic authority, such as the Islamic Co-ordinating Council of Victoriamust be paid to monitor and supervise the Halal food processes, and it must be assured that:

• the foods or ingredients do not contain any component or product of animals that are Haram or products of animals that are not slaughtered in accordance with Shari'a Law;
• the food does not contain any ingredient that is considered impure according to Shari'a;
• the food is safe;
• foodstuffs are not prepared, processed or manufactured using equipment that is contaminated with impure elements; and
• during distribution, the food is physically separated from non-Halal foods.

So how should Australian producers go about marketing their products (fresh or processed) to our Muslims neighbors?

Like most aspects of commerce, this is just another cost of doing business if businesses want access to certain markets.

More to the point, Australian vendors must market Halal certification on goods sold not as religious markings but rather as references to quality assurance. Assurances that the food is healthy. Assurances that they were manufactured or grown in a safe and hygienic environment and assurances that the foods are nutritious.

By doing so, not only are the needs of Muslims met but such a strategy celebrates the notion that Halal is not exclusively for the followers of Islam, but rather it is inclusive and welcomes members of all faiths to join in the consumption. The concept is known as Halal Toyyibban.

The challenge for Australia is not to merely market Halal foodstuffs from Provinsi Papua Barat abutting Papua New Guinea to Pune in western India.

The challenge is to market convenience.