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Halal Goes Global

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Chapter 2 – THE HALAL SECTOR 7<br />

Key countries<br />

The 10 biggest food markets in the OIC countries, based<br />

on 2013 figures 5 , are outlined in Figure 3. However, many<br />

of these countries are also food producers with an active<br />

domestic market, and are not necessarily automatic target<br />

markets for international trade and exports.<br />

It is useful to divide the market into some key sub-sectors, such as<br />

meat and poultry, live animals, non-meat foods and processed<br />

foods, to see where there is significant trade potential.<br />

Meat and live animals<br />

Assuming that all meat and live animals exported to OIC<br />

countries are halal, we can determine the major halal<br />

exporters in this sector.<br />

The top 10 countries exporting meat and live cattle,<br />

sheep and goats to the OIC are: Brazil (US$ 4.7 billion);<br />

India (US$ 2.1 billion); Australia (US$ 1.6 billion); United<br />

States (US$ 1.2 billion); France (US$ 800 million); Turkey<br />

(US$ 500 million); New Zealand (US$ 500 million); Netherlands<br />

(US$ 200 million); Pakistan (US$ 200 million); Germany<br />

(US$ 200 million).<br />

It is worth noting that these figures cover a wide variation in<br />

quality. For example, India’s halal meat exports are primarily<br />

buffalo meat, whereas Australia’s exports are from highgrade<br />

premium cattle serving the top end of the market. Live<br />

animal exports have come under considerable pressure<br />

from animal welfare groups that are concerned about the<br />

stress inflicted on animals during long sea voyages, as well<br />

as how they are treated on arrival. Animal-handling practices<br />

in importing countries often fall short of the expected<br />

standards in producing nations such as Australia, an issue<br />

that has caused friction between exporters and importers in<br />

some instances.<br />

Unprocessed meat and<br />

poultry products<br />

OIC imports of halal meat and poultry products reached<br />

US$ 15.3 billion in 2014, with Saudi Arabia accounting<br />

for US$ 2.5 billion, followed by Egypt (US$ 1.7 billion),<br />

the United Arab Emirates (US$ 1.4 billion), Indonesia<br />

(US$ 1.2 billion), Malaysia (US$ 950 million), Iraq (US$ 790<br />

million), Kuwait (US$ 680 million), Jordan (US$ 610 million),<br />

Lebanon (US$ 540 million), and Oman (US$ 510 million) 6 .<br />

Major growth in all 10 importing countries was consistent<br />

over a 10-year period, ranging from 103% growth in Kuwait<br />

to 495% growth in Indonesia. OIC imports for this product<br />

group grew 227% in the past decade.<br />

Figure 2: Major OIC food markets<br />

Country<br />

Size (US$ billion)<br />

Indonesia 190<br />

Turkey 168<br />

Pakistan 108<br />

Iran 97<br />

Egypt 95<br />

Bangladesh 60<br />

Saudi Arabia 53<br />

Nigeria 38<br />

Iraq 35<br />

Algeria 35<br />

Within the OIC, the GCC continues to be a significant<br />

meat and poultry importing region with US$ 6 billion of<br />

imports in 2014. Saudi Arabia (US$ 2.5 billion) and the<br />

United Arab Emirates (US$ 1.4 billion) accounted for 66%<br />

of this total. The GCC region showed a 150% increase in<br />

these imports over the past decade, and continues to be<br />

an attractive market for exporters. All of these importing<br />

countries showed consistent growth in the last decade for<br />

unprocessed meat and poultry products.<br />

Poultry<br />

The market for poultry and processed poultry products is a<br />

significant one in the halal sector, due to its reach, popularity and<br />

relatively cheap price. It is also a sector with evolving parameters<br />

as issues of feed, handling, stunning and slaughter methods vary<br />

widely, and are also the subject of discussion and controversy<br />

(such as mechanical versus hand slaughter methods).<br />

While poultry exports to OIC member countries is a measure<br />

of halal trade, an unmeasured, yet significant, volume of<br />

halal chicken goes into the mainstream markets without any<br />

halal labelling.<br />

<strong>Global</strong> market<br />

The global market for poultry, both halal and mainstream<br />

produce (including live, chilled, frozen as well as processed<br />

products) amounted to US$ 31.1 billion in 2014, with a 10-<br />

year growth rate of 115%. This comprises US$ 28.1 billion<br />

for processed products and an additional US$ 3 billion in<br />

live, chilled and frozen birds.<br />

Leading global exporters of processed poultry products<br />

are Brazil (US$ 7 billion), the United States (US$ 4.9 billion),<br />

the Netherlands (US$ 2.5 billion), Poland (US$ 1.7 billion),<br />

France (US$ 1.3 billion), Germany (US$ 1.3 billion), Belgium<br />

(US$ 1 billion), Hong Kong SAR (US$ 804 million), Hungary<br />

(US$ 652 million) and Turkey (US$ 651 million).

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