Export Potential of Halal Food Industries

Export Potential of proper nourishment Industries3.1Total Exports and Sh ar of halal FoodAs per authentic statistics of Economic- panorama of Pakistan 2013-14, supply exports of the boorish during July 2013-Apr 2014 were USD 20.997 billion1 whereas total moments were USD 37.105 billion2. in that respect is no separate data available on proper feed exported during last few years. However, as per SBP report, fodder group exports of last two years argon tabulated below duck-B EXPORT RECEIPTS BY goodness(Thousand US Dollar)(Thousand US Dollar)CommodityJul-JunAugJul ( R)Aug (P)Jul-AugFY12FY13FY14 (P)FY14FY15FY15FY14 PFY15 PA. Food assemblage3,789,3734,142,2904,233,395278,676293,128301,541609,560594,66901. Rice2,075,4151,876,2292,099,719133,431135,732134,068287,340269,799A) Basmati1,064,366822,420993,79470,16980,17773,809148,448153,986B) Others1,011,0491,053,8091,105,92563,26255,55560,258138,892115,81302Fish Fish Preparations338,959336,151366,40321,52326,38922,29845,78048,6870 3Fruits243,107283,758310,13121,05922,48424,78847,55347,27104Vegetables/Leguminous Vegetabl118,904139,980145,90910,9898,58911,28722,92719,87605Tobacco23,17027,84226,0773,8861,0152,2658,4853,27906Wheat Unmilled62,34429,7023,197361001,592007Spices37,66441,07156,6972,8062,6445,8166,5928,46008Oil Seeds, Nuts and Kernals27,29149,75969,4782,0831,2731,5333,8702,80609Sugar20,659431,161304,8168,91411,98222,42737,29834,40910 spirit and Meat Preparations212,106224,432237,12018,20023,65322,20640,95245,85911All Other Food Items629,753702,204613,84955,42459,36954,854107,171114,223LegendP Provisional, R Revised,Source http//www.sbp.org.pk/ecodata/index2.aspThere are approximately 50 proper dependant companies operating in Pakistan3. The Al-Shaheer Corporation, PK Livestock and Zenith Associates are prominent meat exporters of the country. Meat-one, the supplementary organization of Al-Shaheer has significantly enhanced the exports of halal aliment i.e. beef and mutton, especially to Gulf countr ies. On the poultry side, KNs is a big name. It is merchandise chicken to the West and in any case opened branch in the USA.As per full year statistics of 2013-14, exports of much than 74,000 tonnes of meat and its products grabbed just closely $230m, up from most 63,000 tonnes expenditure $211m in 2012-134. Meat is mainly exported to Saudi-Arabian Arabia followed by Kuwait, UAE, Bahrain, Oman, Qatar, chinaware and Afghanistan. Similarly, exports of milk and cream ( non tough/sweetened) also witnessed significant growth during 2013-14 by fand so forthing $50m in comparison with previous year figure of $20m5. While, the exports of concentrated or sweetened milk and cream, during 2013-14, stood at same level of $9m6 as in 2012-13. Increasing exports and parallel rise in demand of tasteful milk and meat, are suggestive of sharp potential growth of some(prenominal) the sectors, in near future and calls for investments in dairy and meat industry.3.2Govt. policies for progres sion of halal productsGoernment of Pakistan is striving to grow halal fodder industry. The political sympathies has announced that 50 percent subsidy7 shall be supportd in order to modify telephone circuitmen and producers to explore the proper mart for Pakistani products. Pakistan National Accreditation Council (PNAC) is facilitating halal Accreditation Scheme on the pattern on OIC halal Guidelines developed by the SMIIC for promotion of halal products in the foreign securities industry. Similarly, PSQCA has also introduced proper Standards i.e. PS-3733 2010 for the companies in Halal food sector and PS-4992 2010 regarding the authorized organizations dealing with certification of Halal8 products.In May 2014, the Science and Technology Ministry GoP finalized the draft Bill to establish Pakistan Halal Authority (PHA) at the federal level to guide and facilitate the business of Halal products and processes. Moreover, PCSIR has recently established a state-of-the-art halal trademark laboratory at Lahore9. Despite passing of sufficient time, PHA Bill 2014 is fluent in pipeline and not approved, so far.3.3 realness Halal prevaricationOn 3-4 June, 2014, first World Halal Assembly with event them Asia-Future of World Halal Trade organized in Islamabad. The event was hosted by PSQCA and Halal Products Services Association of Pakistan (HAP). Over 250 scholars and expertise hailing from 40 different states go to the event10. At the occasion, Mr. Zahid Hamid, Federal Minister for Science Technology, vowed to provide complete patronize to private sector in Pakistan to boost Halal products.Participating scholars and dignitaries including Mr. Haluk Dag, escritoire General-SMIIC in his address underscored the importance of cooperation and coordination to accomplish the objective of One Halal logo and One Halal standard11. Global experts also shared their worthyy information/ideas and discussed issues/challenges concerning with the Halal trade, certificat ion, accreditation and commercializeing. bout of cooperation agreements were also signed in the gathering, which is seeming to stand by topical anaesthetic companies to enhance their exports of halal food items.Section-IV International tradeplace of Halal Food4.1Size of Global Halal Food market placeThe global Muslim race estimates stand at 1.8 billion12, this represents 26 % of the total global population (6.8 billion), whereas share of worldwide halal food market is to the highest degree 16 % of the aggregate food market, which means that a minimum space of at least 10 % is available to be change by halal food companies. bare-asss story published in renowned TIME Magazine (May 2009 issue) suggests that total volume of global Halal food market13 is worth about US$ 632. trade size of Halal food in Europe is about $66 billion14, with France havingthe largest share of approx.$17 billion. InUnited Kingdom, only the Halalmeat sale is worthover $600 gazillion annually.Musli ms residing in the USA spend about $13 billion on Halal food products every year. It is worth mentioning that GCC countries aggregate exports of Halal food is approx. $44 billion. Similarly, in the neighboring India, worth of Halal food business is about $ 21 billion, per annum15. Worldwide halal food market is depicted in following global represent with the help of circles16.4.2Stakes of Pakistan in the Global Halal Food MarketPresently, Pakistan is the second largest Muslim country in the world with population of over 180 one thousand thousand, while Indonesia stood at first place. But according to a news story on website of TIME magazine17, Pakistan is interchangeablely to overtake Indonesia and croak the largest Muslim nation by 2030 with expected population over of 256 million. Thus, Pakistan has to propose for leading global Halal food market in the future. Unfortunately, the reliable share of the country in international halal food market is mere 0.5 %18. Pakistan has di rect access to the markets of Central Asia, Middle East. On the new(prenominal) hand, Pakistan is not only the 6th largest cattle breeder but also worlds leading poultry breeder. Following table depicts the unusual vertical growth of poultry sector in Pakistan which has outpaced other sectors of livestock.Table C Livestock population in PakistanGrowth Livestock Population (In million)YearBuffaloesCattleGoatsSheepPoultry1990-9117.817.737.026.3146.91991-9218.317.738.727.4156.21992-9318.717.840.227.7182.61993-9419.217.842.028.3250.01994-9519.717.843.829.1318.81995-9620.320.441.223.5350.01996-9720.820.842.623.7382.01997-9821.421.244.223.8276.01998-9922.021.645.823.9278.01999-0022.722.047.424.1282.02000-0123.322.449.124.2292.42001-0224022.850.924.4330.02002-0324.823.352.824.6346.12003-0425.523.854.724.7352.62004-0526.324.256.724.9372.02005-0627.329.653.826.5433.82006-0728.230.755.226.8477.02007-0829.031.856.727.1518.02008-0929.933.058.327.4562.02009-1030.834.359.927.8610.02010-1131.73 5.661.5528.1663.02011-1232.736.963.128.4721.02012-1333.738.364.928.8785.0Source Pakistan Food Journal, Nov-Dec 2013 issue.4.3Leading Countries of Halal Food tradeIt is strange that non-Muslim nations the likes of Brazil, France, the USA, New Zealand, Thailand, Philippines, etc. are leading the international Halal food market, whereas, Muslim countries like Malaysia, Indonesia, etc. come later in the list. Australia, Canada, capital of Singapore, India are also known as major exporters of Halal food. With 01 million MT export of frozen Halal chicken, and 300,000 MT of Halal beef products, Brazil is the leading the Halal food market19. France is second major player. It exports 750,000 MT Halal frozen chickens annually to Saudi Arabia, Kuwait, UAE, etc. United States is the third largest beef exporter in the world and more than 80 percent of its frozen beef is Halal. Fourth largest beef exporter is New Zealand and 40 percent of its beef products exports are Halal20.4.4Windows of Oppor tunities for Pakistan.There are consider of opportunities for Pakistan to grab its share in global halal market. Owing to its geo-strategic spatial relation Pakistan can easily become leader of Halal food market in the South Asia, later on, it can lead the global markets of halal food commodities. Population wise different global markets are mentionedAsia21 Number of Muslim countries are situated in Asia. In Middle-East and western part of Asia, aggregate population of Saudi Arabia, Yemen, UAE, Syria, Iraq, Turkey, Jordon, Azerbaijan, etc. is more than 190 million. They build highly fertile Halal food market. In East Asia and ASEAN Market,Muslim population is more than 360 million including Indonesia (195million), China, Malaysia, Philippines, Thailand, Myanmar, etc. ASEAN countries are unique in the awareness that they not only supply halal food products but import as well. For instance, Malaysia exports Halal food items to Indonesia. China possesses immense potential as a mar ket of Halal food and local companies can revolve about on this untapped market, besides covering nearby countries of Indonesia and Malaysia.Importantly, our own part i.e. South and Central Asia is thickly populated with more than 600 million Muslims (including Pakistan, India, Bangladesh, Iran, Afghanistan, Uzbekistan, Kazakhstan, Tajikistan, Turkmenistan, Kyrgyzstan, etc. It is a massive market for Halal products as food items are available in Muslim countries but without any halal certification.Africa22 north African countries like Egypt, Algeria, Morocco, Sudan, Tunisia and Libya share population of more than 181 million Muslims. In West African nations i.e. including Nigeria,Niger, Mali, Ivory Coast, Senegal, Guinea, Ghana, etc. more than 150 million Muslims are residing. Whereas, East African countries including Ethiopia, Tanzania, Somalia, Kenya, Uganda, Mozambique, and other countries have population of more than 92 million Muslims. Similarly, Central African countries in cluding Congo, Chad, Cameroon has Muslim demography of about 17 million. In South Africa, though Muslim population is about 1.2 million but Muslims consumers are very particular on HALAL products which creates an opening for Pakistan to harness the potential for Halal products.Europe23More than 50 million Muslims are residing in different European countries like UK, France, Russia, Germany, Bosnia, Kosovo, Albania, Russia, etc. It is an big market for Halal food as consumers have high purchasing male monarch and possess strong eager to buy those food brands which book Halal logo.North South America24 Total population of Muslim residents in both Americas is about 10 million (USA 6.4m, Brazil 1m, Canada 0.8m and other countries). Muslims inhabitation in the USA also possess high purchasing power and always prefer HALAL products.ConclusionDespite a preponderating Muslim country, share of Pakistan in global Halal food market is very insignificant. Sindh province has considerable industrial base and some of the local companies are major players of Halal food market within country and export their products as well. However, a lot of potential in international Halal food trade is yet to be harnessed by local business organizations. Absence of central Halal food ascendancy to guide and channelize the Halal food business is primary overleap in promotion of Halal food exports throughout the world.It is strange that non-Muslim nations like Brazil, France, USA, New Zealand, etc. are currently leading the market of Halal products. There are number of potential markets which can be concentrate by local businessmen for exporting Halal food items. Pakistan falls at 6th rank in the growth of livestock, however, lack of demand infrastructure and seriousness of investors has resulted into very low exports. The existing problem of negatively charged trade balance of Pakistan can easily be addressed by focusing on Halal food markets and making local products equally compatible in the international market. There is need of structured speak to of the rulers to carryout detailed study in global Halal industry and promote it, which would result into not only boosting of exports but also allied benefits like provision of employment opportunities.RecommendationsThe pending bill of Pakistan Halal Authority has to be converted into implementable legislation, at the earliest.Government of Pakistan has to devise short term and great vision plans for converting the country into hub of global Halal food market. In this regard, Vision-Halal 2020, as well as Vision-Hub of Halal-2030 as short and long term plans to strive the goals like attaining significant space in international market by 2020 and then journey to become global leader of Halal food by 2030.Halal Certification bodies are to be established in line with international standards of Halal food and to meet the standard of hygiene food for western world.The Government has to extend financial and technical help to producers and embolden the local businessmen to participate in international exhibitions where they not only find buyers for their Halal products but also learn from the bring of established producers and suppliers of Halal products.Establishment of Halal food export zones in Sindh province, with tax rebates is need of the hour.In order to boost Halal food exports, the government will have to make investment in dairy farming infrastructure, cold chain and veterinary services and farm caution systems.Private Banks can also introduce new financing schemes to encourage the Halal food industry throughout the country.Public-Private Partnership schemes in Halal food sector aiming at export of the value added products would also provide an impetus to the food industry.1 Economic Survey of Pakistan 2013-14, Page 1172 Economic Survey of Pakistan 2013-14, Page 1193 Interview with Mr. Akram Khan, of HIRCP, dated 12.09.20144 http//www.dawn.com/news/1130468 (accessed on 15. 09.2014)5 ibid6 ibid7 http//www.pnac.org.pk/index.php?PageId=110 (accessed on 01.10.2014)8 http//www.pakistantoday.com.pk/2014/05/08/business/bill-drafted-to-establish-pakistan-halal-authority/ (accessed on 01.10.2014)9 Ibid.10 http//halalfocus.net/pakistan-oic-smiic-world-halal-assembly/ (accessed on 01.10.2014)11 Ibid.12 http//www.pnac.org.pk/index.php?PageId=110 (accessed on 07.10.2014)13 http//www.halalpakistan.com/ hypertext mark-up language/halal_market.htm (accessed on 07.10.2014)14 Ibid.15 Ibid.16 Global Halal Food Industry Guide to tapping the fast growing Halal Food Market, Singapore (SPRING 2011), 06.17 http//newsfeed.time.com/2011/01/27/2-2-billion-worlds-muslim-population-doubles/ (accessed on 25.10.2014)18 http//nation.com.pk/business/24-Mar-2014/pakistan-shares-0-5pc-only-in-halal-food-market-zahid (accessed on 07.10.2014)19 Ibid.20 Ibid.21 http//www.halalpakistan.com/html/halal_market.htm (accessed on 08.10.2014)22 Ibid.23 Ibid.24 Ibid.