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Vol. 5: No. 7, July 2010 Quality products drive exports (Bangkok Post, 26.06.2010) |
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Halal food requires more than the right certification to compete in today's worldwide market worth US$580 billion, says Winai Dahlan, director of the Halal Science Center (HSC). The assurance of consistent, high-quality products is a key to land lucrative exports for halal products, he said. "In the end, the market [for halal food] wants quality. We shouldn't be fixated on the needs to be a certificate," Dr Winai said on the sidelines of the Halal Expo held last week in Phuket. Delivering such quality requires a combination of science, technology and Islamic religious standards, he said. Thailand plans to use the HSC to promote halal food exports, which constitute 10-15% of Thailand's total exports. "Things that are [naturally] halal shouldn't require certificates. Halal food may or may not have a certificate depending on the market," he said. "For instance, in the Middle East, pineapple juice does not require halal certification, so having it will create a disadvantage for [producers] because they have to pay costs [to meet the standards]." It costs 20,000 baht to have a factory inspected for halal requirements, in addition to monthly advisory costs. The central Islamic Committee of Thailand controls halal certification. "The United States is the top exporter of halal food, but it has halal certificates just for meat products. People don't question [the US] either, because they are confident of the quality," said Dr Winai. Thailand's 127 largest factories are using HSC's services. Chulalongkorn University established the centre in 2004 as the world's first science agency to apply scientific techniques to halal production processes such as the analysis of raw materials to ensure no ingredients that contravened Islamic law were present. "The market looks at confidence, not certificates," said Dr Winai. Thailand's food exports last year totalled 700 billion baht, 10% of it halal food. Last year's halal exports increased by 53% from 2008. Dr Winai expects the figure to rise to more than 30% this year. Aziz Phitakkumpon, Thailand's Chula Ratchamontri, the spiritual leader of Thai Muslims, said halal products have been developed into a lucrative market, but the halal label, or its requirement, could end up being a future trade barrier. "If so, it will be a negative sign for countries that sell halal," he said. "Some raw materials that are used in food cannot be seen by the eye, so we need the use of laboratories. Issuing measures for responsibility toward society therefore needs the use of scientific measures." Deputy Prime Minister Trairong Suwannakhiri said Thailand was the world's fifth-biggest halal food exporter. "To increase our export share we should focus more on quality products," he said. "We strive to apply science and technology to upgrade food products. Through this laboratory (HSC) we will be more able to engage in technological transfer to several countries." A budget of 4 billion baht has been allocated for a five-year strategy to develop Thailand to become the central area of halal products and services, said Industry Minister Chaiwuti Bannawat. Mr Chaiwuti said the goal was to increase halal food exports to 500 billion baht within five years, from 80 billion last year. The spending includes projects such as developing halal food and services, certification, marketing to the international market and research and development of halal science. "The value of halal food worldwide last year totalled US$80 billion. We still have an opportunity to increase our share if we speed up development. If our factories have increased standards we will be able to produce for exports, which will increase the confidence of our customers," said Petch Chinabutr, the president of the National Food Institute. The NFI plans roadshows with the Board of Investment to seek Muslim partners to invest jointly in ventures such as goat farms and halal restaurants. "Although Australia is not a Muslim country, they are also widely accepted because they have joint ventures with Muslims to develop their products," he said.
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