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Becoming the bread basket of Muslim Asia

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


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.

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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:

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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,"

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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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