Halal Goes Global
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Halal_Goes_Global-web(1)
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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).