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Becoming the bread basket of Muslim Asia

By Jonathan J. Ariel - posted Wednesday, 7 August 2013


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.

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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.

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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.

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This article is partly based on Marketing Halal: Creating New Economy, New Wealth, Liow Ren Jan (MPH Group Publishing, Petaling Jaya, Malaysia RM 32.90).



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About the Author

Jonathan J. Ariel is an economist and financial analyst. He holds a MBA from the Australian Graduate School of Management. He can be contacted at jonathan@chinamail.com.

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