1. 1 BUREAU OF EXPORT TRADE PROMOTION EXPORT STRATEGIES FOR THE HALAL MARKET SENEN M. PERLADA Director Presentation at the NATIONAL HALAL CONVENTION 2008 25-26 June 2008 Philippine Trade Training Center, Pasay City

2. 2 BUREAU OF EXPORT TRADE PROMOTION 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

3. 3 BUREAU OF EXPORT TRADE PROMOTION 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

4. 4 BUREAU OF EXPORT TRADE PROMOTION 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 STRATEGY CONSIDERATIONS

5. 5 BUREAU OF EXPORT TRADE PROMOTION 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

6. 6 BUREAU OF EXPORT TRADE PROMOTION 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 STRATEGY CONSIDERATIONS

7. 7 BUREAU OF EXPORT TRADE PROMOTION 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 STRATEGY CONSIDERATIONS

8. 8 BUREAU OF EXPORT TRADE PROMOTION EXPORT STRATEGIES FOR THE HALAL MARKET A.Major Markets: Increase penetration & expand product range USA, EU Japandeepen knowledge & understanding Chinaof 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

9. 9 BUREAU OF EXPORT TRADE PROMOTION 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 EXPORT STRATEGIES FOR THE HALAL MARKET

10. 10 BUREAU OF EXPORT TRADE PROMOTION 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.Organize Outbound/Inbound Business Matching to/from key markets 4. Participate in world-class trade fairs 5.Tap OFWs & Filipino expats as marketing bridge to target markets 6.Regularly update database of Halal exporting firms & products 7.Enter into Mutual Recognition Arrangements (MRAs) with Muslim countries to ensure competitiveness of RP goods. STRATEGIES IN MARKETING HALAL PRODUCTS

11. 11 BUREAU OF EXPORT TRADE PROMOTION 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

12. 12 BUREAU OF EXPORT TRADE PROMOTION MUSLIM COUNTRIES, OR THOSE WITH SIZEABLE MUSLIM POPULATIONS ARE AMONG RP’S TOP 50 EXPORT MARKETS FOR FOOD & FOOD PREPARATIONS SEVERAL ARE

13. 13 BUREAU OF EXPORT TRADE PROMOTION 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

14. 14 BUREAU OF EXPORT TRADE PROMOTION THANK YOU…