EXPORT STRATEGIES
FOR THE
HALAL MARKET
Presentation at the
NATIONAL HALAL CONVENTION 2008
25-26 June 2008
Philippine Trade Training Center, Pasay City
SENEN M. PERLADA
Director
BUREAU OF
EXPORT TRADE
PROMOTION
1
HALAL MARKET at A GLANCE
1.5 to 1.8 Muslim consumer base in over 100 countries
worldwide
Muslim and Muslim-dominated countries have high
population growth rates
Global Halal trade in the range of US$ 580-600Bn/year
Major markets: SE Asia and West Asia (India, China)
Philippine Muslim population: 5 to 6 million people
Difficulty in choosing Halal items
Low supply of Halal products worldwide
BUREAU OF
EXPORT TRADE
PROMOTION
2
COMPLIANCE TO INTERNATIONAL
FOOD STANDARDS
HALAL
HACCP, ISO, GMP
CODEX ALIMENTARIUS COMMISSION
CODEX General Guidelines for Use of the term “Halal”
Manual for the Slaughter of Small Ruminants in
Developing Countries – FAO Paper 1985
Islamic Ruling on Animal Slaughter: The Right Path to
Health, Health Education Through Religion – FAO Paper 1997
ASEAN Guidelines on the Preparation and Handling of
Halal Food - 1998
BUREAU OF
EXPORT TRADE
PROMOTION
3
STRATEGY CONSIDERATIONS
MIDDLE EAST
Countries in the region are among those with:
1.
highest per capita incomes in the world;
2.
highest population growth rates in the world;
3.
fastest growing middle class in the world
4.
Import a significant proportion of their food needs
United Arab Emirates
Egypt
BUREAU OF
EXPORT TRADE
PROMOTION
4
STRATEGY CONSIDERATIONS
SOUTHEAST ASIA
1.
Indonesia – 200Mn Muslims
2.
Malaysia – Halal Food Hub
3.
Brunei – strong purchasing power
4.
Singapore – strong purchasing power of Muslim
population; staging of events
BUREAU OF
EXPORT TRADE
PROMOTION
5
STRATEGY CONSIDERATIONS
OTHER IMPORTANT HALAL MARKETS
1.
INDIA – around 150Mn Muslims
2.
CHINA – reported 100Mn Muslims
3.
USA – around 6Mn Muslims growing 3x faster than most
minorities; with buying power of about US$12Bn annually;
6 States have passed Halal Food Laws
4.
UNITED KINGDOM – In 2001, Muslims in UK already had
an estimated spending power of 20.5Bn pounds
5.
SOUTH AFRICA – a potential market for Halal food not
only because of its Muslim population but also its
dependency on imported food
BUREAU OF
EXPORT TRADE
PROMOTION
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STRATEGY CONSIDERATIONS
Each Halal importing country has its own
characteristics
1. MIDDLE EAST
Gulf States – UAE
Iran
2. INDONESIA
3. MALAYSIA (USA, CANADA & UK – Crossover
market)
Need for tailored marketing strategies
BUREAU OF
EXPORT TRADE
PROMOTION
7
EXPORT STRATEGIES FOR THE
HALAL MARKET
A. Major Markets: Increase penetration & expand
product range
USA, EU
Japan
deepen knowledge & understanding
China
of Muslim market
ASEAN
B.
Heighten awareness of Philippine Halal products
C. Exploit untapped market niches
D.
Data on Muslim consumption patterns & behavior
E.
Organized & authoritative Halal Certification process
BUREAU OF
EXPORT TRADE
PROMOTION
8
EXPORT STRATEGIES FOR THE
HALAL MARKET
Tripartite Collaboration
1.
GOVERNMENT
 Adovcate
 Facilitate
 Support
2.
BUSINESS
 Act on Opportunities
 Adapt to market conditions
3.
MUSLIM COMMUNITY
 Advise, provide guidance on religious concerns
 Ensure credibility of Halal products
BUREAU OF
EXPORT TRADE
PROMOTION
9
STRATEGIES IN MARKETING
HALAL PRODUCTS
OTHER STRATEGIES:
1.
Promote Halal Certification among exporters
2.
Product promotion/sales to major markets

Aggressive sales promotion and advertising helps to;
2.1 Create consumer or distribution awareness
2.2 Create favorable company image
2.3 Encourage immediate sales
3.
4.
5.
6.
7.
Organize Outbound/Inbound Business Matching to/from key
markets
Participate in world-class trade fairs
Tap OFWs & Filipino expats as marketing bridge to target markets
Regularly update database of Halal exporting firms & products
Enter into Mutual Recognition Arrangements (MRAs) with Muslim
countries to ensure competitiveness of RP goods.
BUREAU OF
EXPORT TRADE
PROMOTION
10
PHILIPPINE FOOD EXPORTS
2006 RP Total Food Exports - US$1,824 Mn
Of which, Processed food exports US$923 Mn or
(50.6%)
1. Processed fruits
2. Nuts & coconuts products
3. Dairy products & bird’s eggs
4. Sugar & sugar preparations
5. Cereals & flour preparations
6. Confectionery & honey
7. Beverages
8. Sauces, condiments, spices & mixes
9. Processed vegetables
10. Meat & meat preparations
BUREAU OF
EXPORT TRADE
PROMOTION
11
MUSLIM COUNTRIES, OR THOSE WITH SIZEABLE MUSLIM
POPULATIONS ARE AMONG RP’S TOP 50 EXPORT MARKETS FOR
FOOD & FOOD PREPARATIONS SEVERAL ARE
BUREAU OF
EXPORT TRADE
PROMOTION
12
IMPLICATIONS
To succeed, we need to:
Deepen understanding of Muslim consumers’
religious needs & consumption patterns +
correct strategies
Work harder to develop Halal “sensibilities” +
products aimed at niche markets
Professionalize Halal Certification process
Expand the breadth and depth of knowledge
of industry trends
BUREAU OF
EXPORT TRADE
PROMOTION
13
THANK YOU…
BUREAU OF
EXPORT TRADE
PROMOTION
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