The recently signed MoU with Malaysia for assistance in the development of Halal food products bodes well for the countrys agriculture, dairy and livestock exports.
The market for Halal food is huge and rising further as Muslim population is growing roughly at a pace of 1.84 percent, according to the CIA factbook, as against 1.12 percent growth in total world population. Interestingly, it is also gaining acceptance among non-Muslim consumers as Halal food is perceived to be healthier with safe ingredients. In contrast, the supply of properly packaged certified Halal food is very low, leaving the market largely unsaturated with plenty of room to grow. This has attracted businesses of all sizes, from huge multinationals to small enterprises in the market Even non-Muslim countries including Brazil, Thailand, Australia, Singapore and Vietnam have also established their presence in this sector. One such example is "Sadia", one of the leading Brazilian poultry brands which has captured a large chunk of market share in the Middle East.
But the assistance on research and training alone is not the sole recipe for success. There is a need to work on infrastructure as well, as most of the food processing industries in Pakistan are small enterprises which lack proper mechanized processing, packaging, supply chain and logistic facilities. There is also a need to work on good manufacturing practices, good health practices, branding, packaging and quality certification which are absent in Pakistan.
Developing Halal food businesses will help tap its export potential, as the industry is one of the fastest growing segments in international trade. It may also be mentioned here that Halal food market has exploded in the past decade and is now worth an estimated $632 billion annually, according to the Halal Journal, a Kuala Lumpur-based journal/ magazine. Thats about 16% of the global food industry.
In addition to exports, the development of this industry will help rationalize the pricing of basic food commodities at home, especially fruits and vegetables which are at present prone to supply side mismanagement and lack of infrastructure. It can also help incentivise market development at the place of production. Although this potentially will increase prices a bit but lower price volatility and less wastage can mitigate its impact.
Lastly, the establishment of Halal food industry would also play an important role in the development of small and medium enterprises and in return generate employment opportunities for thousands of people.