An Outlook For Halal Food
It is estimated that the global value of the Halal market is US$2.1 trillion annually, said Malaysia’s prime minister Mohd Najib bin Tun Haji Adbul Razak at the official opening of the sixth International Halal Showcase (MIHAS) on May 7, 2009. He added that the increasing awareness among non-Muslims on the quality attributes of Halal products adds further to the opportunities available in this industry. Local and foreign food and drink exhibitors at MIHAS are equally convinced of this potential. Nicole Liang reports.
Despite today’s challenges and a slowing market, what do you count as some encouraging developments in your company?
“ We have just played host to a group of potential buyers from China, who came to visit our facilities in Kuala Lumpur. Although we have not struck any deals yet, this is good start. China is a huge market and we will need a strong partner to work with.
Our range of frozen sweet corn products marketed under Mascorn also continue to do well in both local and export markets. ”
What do you think are the major factors driving your company’s competitiveness?
“ The harvest and sale of corns, like other vegetables, depend on fluctuating weather conditions which are beyond our control. Nonetheless, since 1991, we have been able to keep both supply and prices stable.
Firstly, we work with a large pool of contract farmers all across Malaysia. This gives us the economies of scale to offer very competitive prices to our buyers. Together with our contract farmers, we can produce 30-40 tonnes of corncobs per day.
Working with them, Marine Gold was the pioneer to peg fixed selling prices that are valid for up to a year. Nobody else did this before us. With this initiative, our company and the farmers are able to calculate costs and predict profit margins more accurately. ”
In terms of further growth or survival, what do you have in the pipeline for the rest of 2009?
“ We have already signed up for booth spaces in several trade shows in 2009 and 2010. During times like these, we have to make ourselves visible internationally, if not the trade will forget us. ”
Despite today’s challenges and a slowing market, what do you count as some encouraging developments in your company?
“ Mai Lim won the Asia Pacific Super Excellent Brand Award 2008 and launched a new brand – I No Brand. When read backwards, it actually means “Brand No. 1”.
I No Brand, besides being a fun name, is designed to appeal to the Malay and Muslim consumers. The packaging and logo design looks just like batik, which this target group can identify with. We are working to get this brand’s products listed in GIANT hypermarkets around Malaysia.
We have also just obtained a series of certifications for export and hygiene in China, so we can enter it this year. ”
What do you think are the major factors driving your company’s competitiveness?
“ Our main advantage is simply in the taste of our products. Our R&D team developed the unique seasoning made using ingredients imported from Taiwan and Japan.
In terms of export, depending on each country’s requirements and consumer tastes, we can make adjustments to suit their varying demands. In fact, when a buyer visits our factory, he can test taste the product made according to his requests, on the spot.
With this team, we constantly roll out new products. ”
In terms of further growth or survival, what do you have in the pipeline for the rest of 2009?
“ We will shift our focus to the domestic market. With I No Brand, we are confident of attaining a greater market share in the frozen seafood sector locally.
At the same time, we will continue to strengthen our presence in overseas markets, especially where there is good potential for Halal food. Malaysia’s Halal products are very popular everywhere.
For example in Indonesia, we have already set up a marketing office. The next step will be to target markets in China, Brunei and Philippines in 2009/10.
We are also working on getting the HACCP Europe certification, so that we can start selling to the ethnic markets there. ”
Despite today’s challenges and a slowing market, what do you count as some encouraging developments in your company?
“ Besides our range of beverages, we have successfully ventured into the snacks sector by offering wafers, biscuits and crackers as complements. Since we already have a network of buyers across 26 countries, we can now easily tap on these partners to sell our food products.
We also offer condensed and evaporated milk now. As the economy takes a slide, milk is more of a necessity than flavoured drinks, in my opinion. So this might open up more sales opportunities for us. ”
What do you think are the major factors driving your company’s competitiveness?
“ We have an in-house R&D team and our products are made using natural flavours and colourings.
Now, we also have a wider range of products, from 3-in-1 instant coffee, hot chocolate, milk tea and flavoured drinks to snacks and milk. This makes it more worthwhile for our
buyers to import our products. They can buy a wider variety under one roof. ”
In terms of further growth or survival, what do you have in the pipeline for the rest of 2009?
“ As our company expands, we will continue to roll out new products to make full use of our current sales network. ”
Despite today’s challenges and a slowing market, what do you count as some encouraging developments in your company?
“ In Indonesia, our biggest market, Kart’s sales have gone up by 100 percent in 2008. Positioned as a premium product, our products cost thrice the price of similar local brands.
Since we took over the company and facilities two years ago, sales have almost doubled.
This year, we launched the new Savoury Mini, Spicy Anchovies and Murtabak range. At the same time, we also won a four-star rating from SMIDEC.
I am also very pleased that through our distributor in the UK, our Roti Canai range and steamed buns have been selling very well there. ”
What do you think are the major factors driving your company’s competitiveness?
“ Besides our food safety certifications, we also have the ISO 18000 which means that our factories operate in environmental friendly conditions. This adds a bit of morale to our staff. We are now also in the process of obtaining the ISO 22000, which is the food safety standard in Europe.
In addition, thanks to the re-branding exercise one and a half years ago, we now have a clearer and more effective brand identity. Our new packaging, spotting images done by food stylists, red colours and gold borders are very attractive. Besides, it is always easier to sell, riding on Malaysia’s good name. ”
In terms of further growth or survival, what do you have in the pipeline for the rest of 2009?
“ At Kart’s, there is always work in progress. We are working on getting certified by the British Retail Consortium so that we can manufacture Tesco’s in-house brand products. There is a big population of Muslims in the UK. We are looking at supplying to 200 out of the 700 stores. In other areas in the UK, we will have to do enter in slower paces and stages. For now, we will enter the mainstream market as an OEM for other big brands.
Besides the UK, we are also seriously looking at the Middle East. This is a difficult market because of the stiff competition stemming from India. Many parts of India produce very price competitive Halal products which are tough for us to match. We have to play another game by forming strategic partnerships with locals in the Middle East.
There are plans to venture into ready-to-eat meals. We’ve seen others try and fail in this so we are doing extensive research on ready-to-eat meals and surveying consumer response.
We want to be an international player specialised in premium Halal products. In five years, we want to be a brand known and recognised internationally. Above the line advertising and promotions will continue while we maintain relations with the retailers we work with. ”
Despite today’s challenges and a slowing market, what do you count as some encouraging developments in your company?
“ We launched vacuum-packed chilled meat two years ago and have invested a lot in this technology ever since. This can extend shelf life of chilled meat to 70-90 days. Without this technology, chilled meat can only stay fresh for 10 days. Currently, Allana is the only company in India doing this.
This technology has helped us to open up many potential markets such the Middle East. We are also trying to export these chilled meats to Malaysia too.
We used to be a 100 percent for export manufacturer but now, we have at least one percent of our products for the domestic market. We have just opened up a hypermarket in India. ”
What do you think are the major factors driving your company’s competitiveness?
“ As an exporter to 65 countries, our strategy has always been to offer very good Halal products at reasonable rates. The company was founded in 1865 and the meat business was established in 1969. Today, we supply a whole range of frozen, fresh, and vacuum chilled meats.
Our long history has endowed us with the experience to tackle challenges in each country. The major hurdle in export is to overcome the protectionist sentiments in the local industry. For example in the Philippines, the pork industry put up a resistance; for fear that our buffalo meat might erode the popularity of pork in the country. But we got our export approval there anyway. ”
In terms of further growth or survival, what do you have in the pipeline for the rest of 2009?
“ We are already the world’s largest exporter of Halal buffalo meat. Now is the time to look for more investments to add more facilities. Markets in North Africa and Russia are also worth exploring.
Nonetheless, the world is having a bad time at the moment as market demand slows. We expect businesses to decline by about 15 percent across the board. We’ll have to wait until the market gets better since we are already selling at the best possible price and cannot go lower than cost.
Retailing in India is still in the primary stage as this segment is just opening up. The cold chain management and logistics for food has improved a lot in India. We see a lot of potential here. ”

Advertise with us
Click here if you wish to be added to themailing list for our electronic newsletter.
Subscribe to our magazine
To subscribe to Food Export International,click here to download the pdf form.
Free Editorial
We want CONTENTS from you! Industrynews, new products, events and more!

