Halal food sector has become an area of opportunity across the global food trade. 70% of Muslims or 1.33 billion of the 1.9 billion Muslims worldwide follow Halal standards. Adherents philosophy maintain that in order for food to be considered Halal, it must not be a forbidden substance and any food must be “permissiblepermissible” according to Islamic Law (Shariah).

The current estimated value of the total Halal market is USD 150 billion per year on average, potential to rise to USD 500 billion by 2010, driven by the increasing value and diversity of the consumer market, combined with strong demographic trends

Have one of the highest per capita income in the world.

Have the fastest growing middle classes in the world.

Import a significant proportion of their food needs.

Have the highest rates of population growth in the world.

Most striking is that there are approximately 1.9 billion Muslims in the world who are consumers of Halal. Among the Halal importing countries are those which:

India

1.8 billion China

962 million Pakistan

318 million

Nigeria

+306 million

Indonesia

+239 million Ethiopia

+194 million

The United States of America

+190 million

Brazil

+189 million

Bangladesh

+176 million Iran

+153 million

Highest population growth over the past 45 years are found in the oil exporting countries of Western Asia. The UAE for instance, had a mean annual growth of 7.7% between 1950 and 1995. Rapid population growth was fuelled by the high rates of fertility and immigration for Qatar, Western Sahara, Kuwait, Djibouti and Saudi Arabia. What is clear from this data is that Muslim and Muslim majority countries are among the highest contributors to world population growth.

In view of the high food demand and the promising market from Muslims worldwide, many developed countries, specifically the western countries have come forward to supply Halal foods to Muslim consumers. Developed countries have been successful in doing so because of several factors.

First, supply sources in developed countries have the appropriate structures for monitoring and certification of Halal food exports. Appropriate structures imply, as a minimum, that there are Islamic societies or agencies in supply countries, which had been approved by Halal Importing countries and once approved, are listed with the relevant government agency.

Second, stringent health monitoring systems, natural endowments in food production and advanced food technology that allow them to provide reliable and uninterrupted supply of good quality Halal foods to Muslim countries, particularly during peak demand periods like Eid Al-Adha and Eid Al-Fitr.

The increasing demand for Halal imports from Muslim and Muslim majority countries coupled with rising personal incomes and population growth.

The growing number of Muslims in western countries and the stimulatory effect of this growth on Halal exports.

The development of Halal monitoring agencies in these countries which facilitate the export of Halal foods.

The development of structures, rules processes and procedures by some of the importing countries and their cooperation with exporting countries government control agencies and with local Islamic organizations to ensure the integrity of Halal foods.

Given the opportunities and experiences in the global Halal food trade, there is no doubt that it would be more beneficial for the Philippine food products to be registered as Halal certified products.

Promulgation and adoption of the PNS on Halal Foods in February 2005 as a Mandatory Standard is a significant milestone in developing Philippine Halal Food Industry.

There is a need to speed up the implementation of the PNS on Halal Foods. Alongside, there is also a greater need for stringent standard accreditation process of Halal certifying bodies and harmonized the certification guidelines to eliminate confusion, misunderstanding and even abuse in the Halal audit and certification process.

The Islamic Competent Authority need to be supported to manage the level of compliant of all accredited Halal certifying bodies in the Philippines to the PNS on Halal Foods. PNS on Halal Foods reinforces the discipline in the global food export in terms of providing Muslims as well as non-Muslims of quality and safe products for an active healthy life.

PNS 2067:2008 should be widely disseminated across all sectors specially with recognized and accredited certifying bodies and concerned food producers/processors and exporters for them to gain a thorough common understanding of the Halal Food Standards for easier compliance.

Philippine has the comparative and competitive advantage in supplying some fresh and processed food products to the International Halal Market but the acceptance of Philippine food products increasingly must address the growing concern by the Muslim consumers in these markets for a credible and globally recognized certifying body.

Consumer value proposition is :VALUE = COST/BENEFITS + HALAL

Now the global market requires :VALUE = COST/TASTE + CONVENIENCE + HEALTH + SAFETY + HALAL CERTIFICATION (from recognized credible body)

VALUE

COST/

TASTECONVENIENCE

HEALTH SAFETY

HALALFirst understand and then assess the technical and cost effectiveness of the Halal system or protocol that would assure compliance to the standards of the importing country.

Lack of knowledge of Halal standards and requirements of importing countries and support infrastructure.

Costly to establish an ideal direct linkage between exporters and producers (to address the issue of traceability and overall food safety standards).

Poor packaging, post-harvest and processing facilities.

Lack of quality raw materials

No system of standardization and quality assurance.

High cost of compliance.

Global Halal market is a fast growing market for Philippine food products.

The Philippines is serious in establishing the necessary systems and structure to speed up its Halal industry.

Government must provide the mechanisms for greater private sector investments and participation to develop the Halal industry.

Establish closer and expanded linkages with industry associations like PHILFOODEX and PHILEXPORT to widely disseminate the importance of Halal and compliance to Halal standards.