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Halal Industry
Newswrap (May 2023) - Halal Industry

FamilyMart Malaysia to Open 300 Halal-Certified Stores; The headquarters of the International Islamic Food Processing Association (IFPA) was officially inaugurated in Dubai; Saudi's SFDA slaps penalties on 17 pharmaceutical firms for violations; Russia Establishes Accredited Agency for Certification of Halal Products; Qatar calls for unified Gulf policy for buying food, pharma products; Bosnia sets sights on Europe for halal food exports.


 

Company News - Pakistan
Halal meat production, exports Identification, traceability system in livestock discussed. (May 11, 2023)
The Provincial Livestock and Dairy Development Department organized a workshop on the Identification and Traceability System in animals, in collaboration with the Food and Agriculture Organization of the United Nations. Secretary Livestock Masood Anwar emphasized the significance of animal traceability in the halal meat sector. (The News)

Company News – Singapore
Tampines halal street food bazaar causes confusion with stalls selling non-halal food. (May 11, 2023)
A bazaar located near Tampines MRT Station in Singapore has caused confusion among residents as non-halal food was being sold at a halal-only bazaar. The Bazaar Lambak, which promotes itself as selling halal street food, came under scrutiny when visitors noticed stalls selling non-halal items like pork sausages. (Yahoo News)

Company News – Malaysia
Halal-certified Hanwoo Korean beef export to Malaysia will boost bilateral trade. (May 12, 2023)
South Korea's Agriculture, Food, and Rural Affairs Minister, Chung Hwang Keun, announced that the first halal-certified South Korean Hanwoo beef exports to Malaysia will begin next month. This development is expected to boost bilateral trade between the two countries and encourage South Korea to expand its exports to more Muslim-majority nations. (New Straits Times)

Company News – Malaysia
FamilyMart Malaysia to Open 300 Halal-Certified Stores. (May 15, 2023)
FamilyMart Malaysia's FamiCafé in Menara U, Shah Alam, has become the country's first halal-certified convenience store café, receiving certification from Jabatan Kemajuan Islam Malaysia (JAKIM). FamilyMart Malaysia aims to have 300 halal certified FamiCafés by 2025, with existing and new stores following JAKIM's guidelines. (Retail & Leisure International)

Company News – Indonesia
BPJPH, Ministry synergize to accelerate halal product certification. (May 18, 2023)
The Halal Product Assurance Agency (BPJPH) and the Co-operatives and Small and Medium Enterprises (SMEs) Ministry in Indonesia have pledged to collaborate in expediting halal product certification. The BPJPH offers the free halal certification program (Sehati), which has a quota of one million for 2023. (Antara News)

Company News – UAE
The headquarters of the International Islamic Food Processing Association (IFPA) was officially inaugurated in Dubai (May 30, 2023)
The headquarters of the International Islamic Food Processing Association (IFPA) was officially inaugurated in Dubai, UAE. The ceremony was attended by dignitaries, state representatives, and business leaders. HE Mariam Almheiri, Minister of Climate Change and Environment of the UAE, highlighted the country's commitment to environmental stewardship and food security challenges. (IOFS)

Regulatory – Saudi Arabia
Saudi's SFDA slaps penalties on 17 pharmaceutical firms for violations. (May 15, 2023)
The Saudi Food and Drug Authority (SFDA) has acted against 17 pharmaceutical firms for violating the Law of Pharmaceutical Establishments and Preparations. The violations included failure to provide registered pharmaceutical products to the local market, not reporting drug movements in the electronic tracking system, and failing to inform the authority about expected shortages or interruptions in supply. (Zawya)

Regulatory – Qatar
Qatar calls for unified Gulf policy for buying food, pharma products. (May 15, 2023)
During a meeting in Muscat, Qatar Chamber chairman Sheikh Khalifa bin Jassim Al Thani urged the Gulf Cooperation Council (GCC) to adopt a uniform policy for the acquisition of strategic products, including food and medicine. He emphasized the need to establish a permanent emergency crisis committee and develop a plan to identify alternative imports to address such issues in the future. (Doha News)

Regulatory – Russia
Russia Establishes Accredited Agency for Certification of Halal Products. (May 22, 2023)
Roskachestvo, the Russian food quality regulator, has announced the accreditation of Roskachestvo-Halal, an agency for domestic certification of halal products. Starting in May, the organization will certify the market, with around 100 companies expected to apply for the halal label by year-end. (Halal Focus)

Trade Developments – Saudi Arabia
Islamic Development Bank Group signs MoU with Halal Products Development Company. (May 18, 2023)
The Halal Products Development Company (HPDC) has signed a Memorandum of Understanding with the Islamic Development Bank (IsDB) to collaborate on promoting opportunities in the halal sector. The agreement aims to strengthen the halal industries in Saudi Arabia and IsDB Group's 57 member countries. (Halal Focus)

Trade Developments - Malaysia
Savills signs MoU with Malaysia’s UM Land for halal manufacturing hub in Johor. (May 19, 2023)
Savills' integrated real estate advisory services (IREAS) has partnered with UM Land, a Malaysian developer, to establish the Iskandar Halal Park in Johor, Malaysia. The park will serve as an international manufacturing hub for halal-related businesses and will include a halal logistics center offering warehousing, cold storage, and transportation services for halal products(EdgeProp)

Trade Developments – Bosnia-Herzegovina
Bosnia sets sights on Europe for halal food exports. (May 19, 2023)
Bosnia aims to increase exports of its halal certified food products to European markets, taking advantage of its geographic position and the growing Muslim population in Europe. With one of Europe's first agencies for halal quality certification established in 2006, Bosnia has become a regional hub for halal products. (Zawya)

Trade Developments – Saudi Arabia
Saudi Arabia, Malaysia sign deal for mutual recognition of halal certification. (May 28, 2023)
The Saudi Food and Drug Authority (SFDA) and the Department of Islamic Development Malaysia (JAKIM) have signed a memorandum of cooperation to mutually recognize the halal certification of locally manufactured products. (Arab News)

Investment – Saudi Arabia
Saudi Arabia amps up global food-security push with Brazil poultry deal. (May 31, 2023)
Saudi Arabia is furthering its expansion into the global food industry through a deal to acquire shares of BRF SA, Brazil's largest poultry producer. This move is part of Saudi Arabia's efforts to reduce reliance on oil, diversify its economy, and curb food imports. (Al Arabiya News)


UPCOMING EVENTS:

Penang International Halal Expo & Conference 2023 – Malaysia – June 23-25, 2023

Malaysia International Food and Beverage Trade Show – Malaysia – July 12-14, 2023

Halal Expo Manchester International Halal Trade Exhibition – Manchester, UK – July 14-15, 2023

Food Manufactuing Indonesia – Indonesia – Aug 23-25, 2023

Malaysia International Halal Showcase (MIHAS) 2023 – Malaysia – Sep 12-15, 2023

Bahrain Halal Expo 2023 – Bahrain – Oct 5-7, 2023

Saudi International Halal Expo & Summit 2023 – Riyadh, KSA – Nov 19-21, 2023

World Halal Summit 2023 – Istanbul, Turkiye – Nov 23-25, 2023

Halal Expo London 2023 – London, UK – Dec 1-2, 2023

Halal Indonesia Expo 2023 – Indonesia – Dec 8-10, 2023

Halal Industry
Newswrap: Halal Industry

The Indian government has issued guidelines for halal meat certification to streamline the export process; Saudi Arabia's SFDA is testing a blockchain-based system for transparent food tracking; Malaysia plans to build its first lab-grown meat facility to reduce the carbon footprint; Japan is now certified to export halal Kobe beef to Saudi Arabia


 

Regulatory - India
Indian Commerce ministry notifies guidelines for certification of halal meat products. (April 6th, 2023)

The Indian government has tightened regulations for the export of halal meat and its products. Meat and its products can now only be exported as 'halal certified' if they are produced, processed, and packaged in facilities with a valid certificate issued by an accredited body. The new rules aim to streamline the halal certification process for Indian meat exporters. (The Economic Times)

Regulatory - Saudi Arabia
Saudi Arabia: SFDA enables consumers to track sources of food and beverages via blockchain. (April 13th, 2023)

The Saudi Food and Drug Authority (SFDA) has partnered with the Digital Government Authority (DGA) to test a blockchain-based system that enables consumers to track food and beverage sources in a transparent way. The experiment aims to enhance digital transformation and upgrade the digital economy in Saudi Arabia, while ensuring food safety. (Halal Focus)

Company News - Malaysia
Halal is the new clean: Luxury halal Swiss brand targets clean beauty market in Southeast Asia. (April 5th, 2023)

Singapore-based cosmetics brand, Nume-Lab, is expanding its business into the clean beauty market in Southeast Asia. The brand, which offers halal-certified skincare and haircare products made with natural and organic ingredients, aims to capitalize on the growing demand for clean beauty products in the region. (Cosmetics Design)

Company News - Malaysia
Malaysia is launching its first lab-grown meat facility. (April 25th, 2023)

Malaysian company Cell AgriTech plans to build the country's first lab-grown meat production facility in Penang by 2024. Lab-grown meat requires less land and can be done closer to consumers, reducing the carbon footprint from land clearing and logistics needed to deliver the product, which could potentially help in the fight against climate change. (Halal Focus)

Company News - Kyrgyzstan/Russia
Pork in halal sausages sparks scandal in Central Asia (April 28th, 2023)

Russian veterinary watchdog Rosselhoznadzor has claimed to have found pork DNA in a batch of halal sausages imported from Kyrgyzstan, raising concerns about the halal industry in Central Asia. The director of the National halal industry development centre in Kyrgyzstan, Abdul-Khamid Shamshidin Uulu, said that pork DNA could make its way into halal products due to contact or insufficient treatment of meat processing equipment. (Pig Progress)

Company News - USA
Labeling oversight leads to recall of 30 tons of halal meat and poultry sausages. (April 24th, 2023)

Alef Sausage Inc. is recalling 61,574 pounds of ready-to-eat halal meat and poultry sausage products due to misbranding and possible temperature abuse. The meat products were not labeled with a handling statement indicating that they should be kept refrigerated, and some items may be on retailers' shelves or in consumers' pantries. (Food Safety News)

Company News - USA
New York's The Halal Guys restaurant brings gyros, falafel, hummus and more to Iowa (March 30th, 2023)

The Halal Guys restaurant chain, which specializes in Middle Eastern cuisine, plans to open five locations in Iowa, including Des Moines, Iowa City, and Cedar Rapids. The fast-casual restaurant has over 100 locations worldwide and another 400 in development. (Des Moines Register)

Investment - UAE
Al Ghurair Foods to invest Dh1b on 3 food processing plants in Abu Dhabi (April 29th, 2023)

Kezad group has signed a 50-year land-lease deal with Al Ghurair Foods to invest over Dh1 billion in three mega food processing projects in Abu Dhabi's food security program. The projects include a starch processing plant and one of the top broiler producers in the UAE, while the third project is yet to be announced. (IOFS)

Investment - Indonesia
Upgrades and opportunities: Kraft Heinz pumps investment into Indonesia, eyes meat replacement innovation (May 2nd, 2023)

Kraft Heinz invests $84m in upgrading its production facility in Indonesia, demonstrating its commitment to the market and its sustainability pledges. The facility is the firm's largest production site in Asia and primarily focuses on the ABC brand, which has the largest market share in Indonesia. (Food Navigator)

Trade Developments - Nigeria
Halal Market to Contribute $1.6bn Annually to Nigeria’s Economy — Nigeria Halal Economy Report (April 28th, 2023)

Report says Nigeria's Halal market could bring $1.6bn annually to the country's economy in four years, as the country's huge domestic market for halal products and services is worth $1.7bn. The report was produced by consultancy firm Dar-Al-Halal Nigeria and DinarStandard and launched in Abuja. (Daily Trust)

Trade Developments - Saudi Arabia
Japan certified to export halal Kobe beef to Saudi Arabia. (May 1st, 2023)

Japan is now certified to export beef to Saudi Arabia's halal market. The certification ceremony was attended by Prince Faisal bin Bandar bin Sultan Al-Saud and Tomoshige Kanzawa, president of the Kobe Beef Marketing and Distribution Promotion Association. 145 head of halal Kobe beef are scheduled to be shipped to Saudi Arabia this year. (Arab News)

Trade Developments - Indonesia/Saudi Arabia
Meat-ing the minds: Indonesia pushes for export collaboration with Saudi government with eye on hajj pilgrims. (May 3rd, 2023)

Indonesia plans to expand its meat exports to Saudi Arabia, where it hopes to leverage its halal certifications to cater to Muslim consumers on pilgrimage. With the world's largest Muslim consumer market, Indonesia aims to tap into the potential for halal food items, especially meat for consumption and sacrificial purposes. (Food Navigator)

Trade Developments - Singapore
Warees Halal and IHATEC Paves Way for Singapore Businesses for Export to Indonesia (May 5th, 2023)

Warees Halal Limited (WHL) has partnered with PT Insan Halal Terpercaya (IHATEC) to offer a 4-day training program to Singapore-based businesses that wish to produce or sell Halal products in Indonesia. Introduced in 2014, the Indonesian Law No. 33 Year 2014 on Halal Product Assurance requires products circulating in Indonesia to be Halal certified. (News Wires)

Trade Developments - Malaysia
Foodpanda Malaysia looks to Middle East, South Asia as appetite for halal delivery surges. (April 18th, 2023)

Foodpanda Malaysia is discussing with Delivery Hero, its parent company, the possibility of expanding its halal delivery services to the Middle East and South Asia. The move follows the successful launch of the company’s specialized halal offering in Malaysia. Foodpanda Malaysia has already begun talks to export its Bekal service to sister companies in these regions. (South China Morning Post)

UPCOMING EVENTS:

Penang International Halal Expo & Conference 2023 – Malaysia – June 23-25, 2023

Malaysia International Food and Beverage Trade Show – Malaysia – July 12-14, 2023

Halal Expo Manchester International Halal Trade Exhibition – Manchester, UK – July 14-15, 2023

Food Manufactuing Indonesia – Indonesia – Aug 23-25, 2023

Malaysia International Halal Showcase (MIHAS) 2023 – Malaysia – Sep 12-15, 2023

Bahrain Halal Expo 2023 – Bahrain – Oct 5-7, 2023

Saudi International Halal Expo & Summit 2023 – Riyadh, KSA – Nov 19-21, 2023

World Halal Summit 2023 – Istanbul, Turkiye – Nov 23-25, 2023

Halal Expo London 2023 – London, UK – Dec 1-2, 2023

Halal Indonesia Expo 2023 – Indonesia – Dec 8-10, 2023

 

 

 

Halal Industry
Africa’s battle to stay cool to reduce post-harvest losses and increase food security

In Africa, over 20% of the population faced hunger in 2021, while in Sub-Saharan Africa, post-harvest food losses are estimated at $4 billion annually, enough to feed at least 48 million people, according to the UN Environment Programme.

 

Addressing the 2.1 billion tonnes of global food loss and waste is a planetary problem but one that requires local solutions. In Africa, one of the key measures to reduce post-harvest food losses is the expansion of sustainable cold chains, suggests the UN Environment Programme (UNEP). Cold chains are climate-controlled infrastructures helping to preserve edible products by maintaining a consistent ambient temperature.

“With Africa’s economy, driven by population growth, urbanisation and food security is expected to grow tenfold to $29 trillion by 2050; this presents a challenge and an opportunity” in accelerating the uptake of sustainable cold chain solutions in the agricultural sector, said Ziad Al Bawaliz to Salaam Gateway. Cold chains are climate-controlled infrastructures that help preserve edible products by maintaining a consistent ambient temperature.

Al Bawaliz is Danfoss’s regional president for Turkey, the Middle East and Africa. With over 40,000 employees worldwide, the Danish multinational company engineers energy-efficient technologies and delivers cold chain solutions through commercial and industrial refrigeration.

Danfoss is a founding industry partner at the Africa Centre of Excellence for Sustainable Cooling and Cold-Chain (ACES), located at the University of Rwanda. Through its office on the ACES campus, Danfoss supports students and technicians in their training needs.

“Refrigeration has been around for more than 100 years, and it’s an evolving industry,” Al Bawaliz said. “We can leapfrog the challenges developed nations face with CFCs and HCFCs.”

Chlorofluorocarbon (CFC) and hydrochlorofluorocarbon (HCFC) refrigerants are ozone-depleting. The use of these chemicals has been banned and is currently being phased out, following the Montreal Protocol of 1987.

ACES is a UNEP-led initiative established in 2020 by the governments of Rwanda and the United Kingdom. Its mission is to develop and accelerate the uptake of sustainable cold chain solutions in Africa's agriculture and health sectors.

“Besides dealing with a large number of small farmers, a lack of policies, investments, awareness and technical capabilities are the main challenges,” said Al Bawaliz about the difficulties of expanding refrigeration networks to prevent post-harvest losses.

According to Al Bawaliz, most small farmers cannot afford a cold chain infrastructure. What makes matters worse is that according to the World Investment Report 2022, foreign direct investments (FDI) in various sectors relevant to achieving the UN Sustainable Development Goals (SDGs), especially in food, agriculture, health and education, continued to fall in 2021. However, flows to Africa increased from $39 billion in 2020 to $83 billion in 2021.

“We need to have the right financial models to ensure the development of cold chain; the return on investment is viable,” he said, suggesting service-based models to avoid the upfront investment.

“The banks need to be part of the picture,” Al Bawaliz added.

 

Ziad Al Bawaliz (Regional President at Danfoss Turkey, Middle East & Africa), Andrea Voigt (Head of Public Affairs at Danfoss Climate Solutions), and students from Danfoss’ internship project Eyes and Ears in Africa: Yves Nezerwa, Parfait Niyonshuti and Natasha Mutangana (Courtesy: Danfoss).

 

The World Resource Institute also names insufficient energy access to power cold storage and poor road and railway networks as an issue to be tackled, in addition to Africa’s low adoption rates for innovations in managing post-harvest losses.

To shift these low adoption rates, the Nigerian entrepreneur and founder of the Smallholders Foundation, which informs on sustainable farming through a radio station, Nnaemeka Ikegwuonu, travelled across the country to speak to farmers to co-design such innovations and help scale up businesses.

The result is a ColdHub, a “plug and play” modular, solar-powered walk-in cold room for 24/7 off-grid storage and preservation of perishable foods.

“When you travel along Nigerian roads, it’s a typical picture of citrus and other high-quality fresh produce dumped on the roadside due to lack of storage,” Ikegwuonu said at an event organised by The Oxford Martin School, a research and policy unit based in the Social Sciences Division of the University of Oxford.

“I discovered that more than 45% of food is lost due to lack of cold storage at key points along the food supply chain,” Ikegwuonu added.

According to him, with just 10,000 metre cubed, Nigeria has one of the lowest cold storage capacities in Africa, mainly catering to the needs of the health sector and fish imports from Europe and Asia. Refrigeration, which he describes as critical infrastructure, doesn't exist in Nigeria's food aggregation centres.

 

 

“The power grids can’t deliver energy reliably, and the average farmers and wholesalers can’t afford most of the refrigeration equipment needed to provide large-scale cooling,” he said, confirming the challenges mentioned by the World Resources Institute and Danfoss’s Al Bawaliz.

Ikegwuonu founded ColdHubs in 2015, and besides designing and building 100% solar-powered cold rooms, the company also operates and maintains them.

Over 5,000 farmers, retailers and wholesalers are using Coldhub’s services, nearly doubling their income from about $60 per month to $100 to $120 by selling the food that usually was thrown away.

“The goal is to extend the shelf life of food from two days to more than 21 days by bringing refrigeration closer to farmers at farm gates, where they need it the most,” Ikegwuonu said about the 54 cold rooms the company is running at the moment.

For 2022, Ikegwuonu projects to grow to 100 such rooms.

“Moreover, we've saved more than 1 million kilogrammes of CO2 by using renewable energy exclusively in all our systems, with no need for diesel generators at all,” he said.

© SalaamGateway.com 2022. All Rights Reserved

Halal Industry
UAE dates exports jump fivefold in last decade as government continues to support farmers

The UAE exported $235 million worth of dates in 2020, with the fruit accounting for around 60% of the country’s agricultural produce.

 

Sharjah: Date production is booming in the UAE as government initiatives start to trickle down into profits for farmers.

The Al Dhaid Date Festival that took place in the UAE’s emirate of Sharjah in late July is the latest example of the support the government is giving to the food sector. The annual event brought together thousands of farmers, manufacturers, and distributors of agricultural equipment to facilitate deals and exchange of expertise.

“The government does not take fees from us whether for participation in public markets or in festivals,” Ibrahim Shakkah, a Sharjah-based date farmer who participated in the festival, told Salaam Gateway. “Some exhibitions charge us, but they are nominal fees, and this greatly supports us and allows us to showcase our products and compete in the market,” he said.

Shakkah supplies the local market but is working towards becoming a regional supplier. “This is my third time participating in the festival and it has helped me gain many customers; I now sell around 600 kilogrammes of dates per month,” he said.

 

Ibrahim Shakkah, a Sharjah-based date farmer (Heba Hashem).

 

More than 30,000 people visited the sixth edition of Al Dhaid Date Festival, which coincided with the UAE’s date harvesting season that peaks in August and September. The event included competitions for date farmers and awarded cash prizes totalling $272,000 to 145 winners. Some of the most sought after dates among the nearly 160 varieties grown in the country were on display and sold.

Abu Ahmed, a Sharjah-based date palm farmer who was participating for the first time, presented varieties such as the khalas, sukkari, khenaizi, fard, marzipan, sobo al-aroos, al-ambra, nagal, and gash rabie. “Everything was sold out because of its high quality. I sold more than five [metric] tonnes of dates last year and it was mostly through local marketing,” he said.

Commercialising the industry

As much as two-thirds of the UAE’s agricultural land is dedicated to cultivating date palms, and the fruit makes up around 60% of the country’s agricultural produce, according to the Ministry of Climate Change and Environment. In 2019, the UAE produced 341,246 metric tonnes of dates from an estimated 40 million date palm trees across the country, data from the Federal Competitiveness and Statistics Centre showed. However, most of the date farms in the UAE are small family-run entities that were started about four decades ago as part of a social welfare programme designed to settle the Bedouin. Because of this, many of the date groves in the country are hobby farms and many farmers still grow dates in their backyards.

The government has already taken huge steps to commercialise date cultivation and help farmers increase their productivity and profitability. While Sharjah organises the Al Dhaid Date Festival and the three-month-long dates festival in Souq Al Jubail market, Abu Dhabi has been organising the Liwa Dates Festival for 18 years. The event recently concluded its latest edition, where prizes worth almost $2.2 million were given out to hundreds of winning farmers.

Abu Dhabi also organises the annual Khalifa International Award for Date Palm and Agricultural Innovation as well as the International Date Palm Conference and Abu Dhabi Date Palm Exhibition. This month, yet another annual event – the Liwa Ajman Dates and Honey Festival – will take place on the western coast of the country.

 

Al Dhaid Date Festival coincided with the UAE’s date harvesting season (Heba Hashem).

 

Exports on the rise

However, the most transformational move for date farmers was the establishment of Al Foah in 2005 by the Abu Dhabi government. Now the world's largest dates processing company, it buys products from local independent farmers and markets them domestically and abroad. The company – recently merged into the government-backed food giant Agthia – processes 110,000 metric tonnes of dates every year and exports 90% of this amount.

Last month, Al Foah launched an online marketplace called eZad that will enable farmers to sell off excess produce at home and abroad, helping them deal with their unsold produce and ensuring they get paid quickly. More than 1,200 buyers have signed up on the electronic platform, while over 450 local farmers have registered their interest.

As a result of these efforts, the value of the UAE’s dates exports has multiplied almost fivefold over the last decade, reaching $235 million in 2020 from $48.1 million in 2010, according to the Observatory of Economic Complexity (OEC), which collates international trade data. The UAE now accounts for 12.3% of global dates exports, making the country the third-largest exporter of dates after Tunisia (15.5%) and Saudi Arabia (13.2%). India – the largest importer of dates in the world – was the top importer from the UAE, receiving 33.2% of the country’s dates in 2020, followed by Bangladesh (16.5%) and Morocco (13.7%), OEC data showed.

Agricultural constraints

While date farming in the UAE is a long-standing tradition that locals are proud of, the industry is gaining more importance given the role it plays in the pursuit of food security. As such, there is a growing focus on educating farmers on sustainable techniques that can improve the quality of their crops. At the same time, the UAE government continues to support local farmers, providing subsidies such as agricultural materials at half the price. But several constraints remain.

“One of the biggest challenges faced by farmers in the UAE are the high costs that they incur due to water resources being available in different amounts across the country,” Saeed Dalmouk Alkatbi, a member of the organizing committee at Al Dhaid Date Festival, told Salaam Gateway. “This is besides the problem of agricultural pests and the high cost of pesticides. These issues lead to a discrepancy in the quality and prices of dates from one region to the other within the UAE,” he said.

The government announced this year that it would address this problem by investing AED2.5 billion (almost $681,000) to extend additional water networks to agricultural farms for easy distribution of treated water.

 

Abu Ahmed, a Sharjah-based date farmer (Heba Hashem).

 

“We inherited palm cultivation from our fathers and grandfathers, and we learned many things from them about how to take care of the date palm,” said Abu Ahmed. “At first, we were using primitive methods for drying and storing dates, then we started adopting modern methods. We now use organic fertilisers to fertilise the palm and we try to combat pests from an early stage."

Alkatbi noted that the Al Dhaid Date Festival introduced farmers to several growing techniques that can increase crop yields, most importantly multiplication of seeds, vegetative propagation, and the use of tissue culture technique. The event also showed date farmers how to monitor the date palm periodically to avoid pests such as the red palm weevil. The highly destructive insect is so prevalent that the UAE is investing $1 million to develop genetic methods to control it.

“It’s no secret that there are big challenges in this field, as there are diseases which can strike the palms and negatively affect their production. We manage these problems through pesticides or primary prevention of infection,” said Shakkah. “At the end of the day, the date palm tree is like a child; when you care for it and nurture it, it will give you good yields."

© SalaamGateway.com 2022. All Rights Reserved

Halal Industry
UAE’s Pure Harvest considers a number of debt structures to expand to Asia

Pure Harvest Smart Farms’ breakthrough farming system has attracted a diverse mix of investors.

 

Dubai: Abu Dhabi-based Pure Harvest Smart Farms plans to raise funding through a new sukuk (Islamic bond) or conventional bond to support its food-security driven expansion plans, Tariq Sanad, the company’s chief financial officer, told Salaam Gateway.

The agritech firm’s breakthrough farming system that can produce year-round crops in the desert has attracted a diverse mix of investors since its inception in 2016.

“Our strategy is to grow 365 days a year because that is sustainable and serves the food security mandate. During the pandemic and the recent Ukraine-Russia conflict, we have seen that the food system is quite unstable and fragile,” said Sanad.

“These two events highlighted the importance of food security especially in the regions where we operate, which have harsh climates and a dependency on food imports,” he said.

Pure Harvest’s controlled environment agriculture (CEA) system features semi-automated greenhouses that optimise every aspect of the climate, including temperature, humidity, and carbon dioxide.

With this technology, the UAE-based company can grow fruits and vegetables using one-seventh of the water used by traditional greenhouse-based farms.

The system represents a much-needed solution for the growing food security challenges worsened by Russia’s invasion of Ukraine as it can boost local production in places with restrictive environments.

“We’ve utilised everything we’ve learnt from R&D to ensure we can control the environment inside, which represents a Mediterranean climate that’s conducive to producing fruit and vegetables throughout the year,” said Sanad.

“We cannot continue relying on 80% of our food [in the UAE] coming from outside. We’re solving a problem that we’re seeing right now, way ahead of other regions.”

Starting off with tomatoes six years ago, today, Pure Harvest can now grow three subsets of crops. These include vine crops such as cucumbers, tomatoes, courgettes (zucchini), aubergine (eggplant), and capsicum peppers; all types of leafy greens; and berries.

“With the current pipeline in construction, we’re able to produce about 1,130 tonnes a month with all the facilities we will have in Kuwait, the UAE, and Saudi Arabia,” said Sanad.

“Our strategy is to provide locally for locals; it’s not about producing to export. However, we’re exporting our expertise in terms of our expansion globally.”

The company secured $180 million from global investors in June this year.

“We started with a small semi-commercial facility, in Nahel, Abu Dhabi, and we did all our R&D on it, then we expanded with our investments and raised a sukuk that was able to fund our growth in the UAE and into Saudi Arabia, where we built another six-hectare facility,” said Sanad.

“We’re replicating this now. We’re looking to go into Kuwait, and we’ve acquired another facility in the UAE which we look forward to retrofitting with our technology. We’re also expanding to southeast Asia.”

The latest funding brought the total amount raised by Pure Harvest to-date to $387.1 million. It follows the $50 million raised through sukuk financing last year, led by Dubai’s SHUAA Capital.

He noted that the success of the sukuk was linked to the company’s food security objectives and environmental, social and governance (ESG) elements as well as its location in the Middle East, which is home to a large Islamic financing base.

However, even conventional investors supported this funding. One of the key investors in the sukuk was American investment firm Franklin Templeton, which said at the time that the investment reflected its ESG and Sharia-compliant mandates.

"We are now looking to raise another source of non-dilutive capital, and a Sukuk would be one source we consider,” said Sanad.

"These are big investments as we have ambitious growth plans that we need to fund. We build glass and steel which from a cost-capital perspective are better to fund with non-dilutive debt, of which a sukuk could be a consideration."

As for southeast Asia, the company is eyeing expansion in Malaysia, Singapore, Indonesia and the Philippines.

“Even though southeast Asia is very green, it has a subtropical humid climate, so you won’t see the fruits and vegetables you would see everywhere else, and they have a high dependency on imports,” said Sanad.

“Key parts of our inputs [for the greenhouse food production systems] are electricity and carbon dioxide; therefore, being close to power plants has a massive advantage in the cost structure. We’re looking to collaborate with commercial partners to enable that and help us find the right infrastructure.”

Globally, the controlled environment agriculture market is projected to grow from around $74 billion in 2020 to more than $172 billion in 2025, according to US-based KD Market Insights.

In addition to hydroponic greenhouse farming, Pure Harvest is expanding into vertical farming, another form of CEA, through a collaboration with South Korea’s PlanTFarm, whose country is highly urbanised. “We learnt everything from the hardest point. We selected a country [the UAE] which has one of the harshest climates, not only high in temperature but also in humidity, which is a key factor you need to take into consideration as you build these facilities” said Sanad.

“If you’re going to create a solution, it should work in the worst possible scenario. That was the reason we started in the UAE, besides having a lot of support from the government. A big part of it was, if we could solve it here, we could solve it anywhere,” he concluded.

© SalaamGateway.com 2022. All Rights Reserved

Halal Industry
India has huge potential as halal meat export source

High quality meat sees growing exports to the Gulf States.

 

New Delhi: While 80% of India’s 1.4 billion people may be Hindu, the prominent position of Muslims in the country’s slaughtering and butchery sector means it has vast potential as a halal meat and meat products supplier to the Islamic world, say experts.

Only in slaughterhouses serving Sikh areas – there are more than 20 million Sikhs in India, mainly living in the Punjab – is non-halal slaughtering commonplace. The Sikh community prefers animals be slaughtered by the jhatka technique where the head is severed in one stroke by a sharp tool.

However, according to Aswhani Kumar Rajput, executive director of All India Poultry Breeders Association, only 5% of Indian animals and birds are slaughtered by this method with most of the rest being halal.

“There are some slaughterhouses where non-halal meat is also processed, mainly to supply the Sikh regiment of the Indian army. During that time normal halal production is stopped,” said Maulana Niaz Ahmed Farooqui, chief executive of Jamiat Ulama-i-Hind Halal Trust, a major halal certifying agency based in the capital New Delhi.

Mohammad Yusuf Qureshi, Uttar Pradesh (UP) state president of All India Jamaat-ul-Quraish, a meat traders’ association, told Salaam Gateway: “All the slaughtermen, especially in UP, are Muslim and there is no doubt the meat will be halal.”

The UP towns of Unnao, Aligarh and Ghaziabad are the major slaughtering centres for buffalo meat, said Farooqui.

UP is India’s most populous state with more than 205 million people, 20% of whom are Muslim. It is also an important one for meat exports, housing nine of the country’s 12 meat processing plants approved by the central government’s Agricultural and Processed Food Products Export Development Authority (APEDA).

The other three are in west India’s Maharashtra and southern India’s Karnataka. In all there are about 3,600 slaughterhouses in the country, according to APEDA figures.

According to a central government survey, the majority of Indian Hindus eat meat and are not concerned if it is halal or not. Hence, the potential for exporting halal meat from India was significant and realised.

 

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Meat and offal exports grew 4.76% last financial year

According to figures released by Indian ministry of commerce and industry, in the financial year ending March 2022, the country exported $3.38 billion worth of meat and edible offal, 4.76% higher than the previous year.

The biggest destinations were majority Muslim Egypt ($740 million) and Malaysia ($445 million) as well as Vietnam ($488 million). Meanwhile, to wealthy Muslim markets such as the United Arab Emirates (UAE) and Saudi Arabia, exports were $164 million and $159 million respectively, registering a year-on-year growth of 33% and 45%.

Other export markets were Oman ($44 million), Qatar ($31 million) and Kuwait and Bahrain ($25 million each).

The Jamiat Ulama-i-Hind Halal Trust, which Farooqui said is accredited by 13 countries including Saudi Arabia and UAE, provides 200 contracted halal supervisors to certified Indian slaughterhouses. They ensure the slaughtering knife is sharp; animals are not tortured; they are served water and the slaughtermen recite “Bismillah, Allah Hu Akbar” as they kill livestock.

Farooqui said using such supervisors was commonplace in Indian slaughterhouses that require halal certification (including exporters), with often at least two – and sometimes four – people on duty when slaughtering takes place.

India’s competitive advantage was not just its compliance with ritual. Farooqui said the quality of the country’s buffalo meat was the best; its taste good and it has high protein and low-fat content.

He emphasised Indian halal standards were strict and its certifying system highly organised.

India enjoys a major cost advantage over other exporters like Brazil and Australia in the buffalo segment as a significant proportion of the Indian meat comes from spent animals mainly reared for milk, said Rajput, also executive director of All India Poultry Breeders Association.

He said the same applied to Indian goats and sheep. These products experience high demand with two to three cargo planes departing Delhi Airport daily for the Gulf countries.

“Further butchering of these carcasses is done in the Gulf countries itself,” he said.

However, unfortunately Indian broiler chickens were raised exclusively for their meat. Brazil, as a major chicken exporter, has a lower cost of production meaning India does not export many chickens.

Regardless, the Indian meat industry is large

According to the last livestock census conducted by the central government’s department of animal husbandry and dairying in 2019, there were 110 million buffaloes, 74 million sheep, 149 million goats and 852 million poultry birds in India.

These quantities were significantly higher than the 2012 census. The number of cows also increased to 145 million but, as Hindus consider them holy, their slaughter and consumption is banned in most Indian states including UP.

The southern state of Kerala, with its significant Muslim and Christian populations, does allow cows to be slaughtered. As well as offering beef for local consumption – although not for exports, which cannot be made from India – this state’s strong meat sector also supplies many butchers and slaughterhouse workers (along with mainly Hindu neighbouring Tamil Nadu) to export-oriented slaughterhouses in UP. These are often contracted labourers and include many women, said Farooqui.

Slaughterhouse owners provide their workers with shared in-house accommodation, some of which consist of 50 to 100 residential quarters, and operate in two eight-hour shifts daily, said Qureshi, whose brother owns one such slaughterhouse in UP.

These southern slaughtering skills are in demand as UP businesses can struggle to hire local slaughterers with good hygiene practice, he said.

Quality matters in the export business and operations are scrutinised by teams from buyers’ companies making regular inspection visits; checking for dust, pests and even cats, said Qureshi.

“If there is any hair, fly or mosquito found in the meat, everything is rejected and wasted,” he said.

Combining such skills, with halal awareness and large volumes, the Indian meat sector is set to be a major meat supplier to the Muslim world for years to come.

© SalaamGateway.com 2022. All Rights Reserved

Halal Industry
Pharmaniaga’s new partnership will commercialise Malaysia’s first halal blood anticoagulant

Anticoagulants and cardiovascular treatments will be among the top five therapy areas in 2026 with each segment expecting $87 billion in global spending, forecasts the IQVIA Institute for Human Data Sciences.

 

Malaysia-based Pharmaniaga Berhad has entered into a memorandum of collaboration (MoC) with China’s Suzhou Ronnsi Pharma Co., Ltd (Ronnsi) to commercialise halal ovine (sheep) anticoagulant in Malaysia.

Founded in November 2012, Ronnsi focuses on complex drug development. Belonging to the anticoagulants class, their sheep-derived purified heparin and sheep enoxaparin sodium are used to prevent or treat blood vessel, heart and lung conditions.

Typically, manufacturers extract heparin and enoxaparin from porcine (pig) origins, making these products possibly unacceptable for patients practising the Islamic faith.

Pharmaniaga was established in 1994 and is one of Malaysia’s largest listed integrated pharmaceutical groups. The company is involved in various segments of the pharmaceutical value chain from research and development to manufacturing generic drugs, over-the-counter medicines and nutraceuticals, logistics and distribution, sales and marketing and retail pharmacies.

“Addressing the unmet demands for halal pharmaceuticals, halal ovine anticoagulant has a vast opportunity to grow, especially among Muslim populations and countries,” Pharmaniaga Group Managing Director Zulkarnain Md Eusope said in a press release commenting on the MoC’s commercial potential.

He added that from 2019 to 2021, the market value for anticoagulants experienced a 50% compound annual growth rate. The rise in COVID-19 cases boosted the demand; an issue also documented by researchers at the Medical University of Vienna.

That study found COVID-19 patients have an increased risk of thromboses and embolisms, such as strokes, pulmonary or myocardial infarctions and even deep vein thromboses.

“These complications during hospitalisation have a direct impact on the patients’ well-being and increases the risk of dying from COVID-19,” David Pereyra, one of the researchers, said.

Health professionals also use anticoagulants for invasive surgeries and preventive treatment for cardiovascular and cerebrovascular diseases. A medical journal reports that over the last 30 years, deaths from cardiovascular disease have almost doubled from 271 million in 1990 to 523 million in 2019.

The highest number of deaths occurred in densely populated countries such as China, India, Indonesia, Russia and the United States. Concerned about the possibility of product shortages caused by health, agricultural and economic factors, the US Food and Drug Administration (FDA) encourages reintroducing heparin derived from sources other than porcine.

According to the FDA, bovine (cow lung) heparin was first approved in the US in 1939 and widely used for over 50 years. However, concerns about the possible introduction of transmissible spongiform encephalopathy agents (TSE or mad cow disease agents), saw manufacturers voluntarily remove bovine heparin from the US market in the late 1990s.

Now, recent comparative studies on clotting and anti-protease profiles on heparins of ovine, bovine and porcine origin reveal bovine heparins produce weaker anticoagulant effects compared to porcine and ovine.

While Ronnsi’s ovine anticoagulant is already halal-certified in Indonesia and Hong Kong, Pharmanagia will apply to the Department of Islamic Development Malaysia (JAKIM) for halal certification.

The venture with Ronnsi positions Pharmaniaga as the exclusive registration holder, distributor and manufacturer in Malaysia, while the Chinese hold the patent and will develop the product. Pharmaniaga will present the relevant documents to the National Pharmaceutical Regulatory Agency for approval as part of procuring the required raw materials and manufacturing the drug.

The healthcare specialist expects the registration process to be completed by 2024.

 

 

Set for growth

Following the late 2021 announcement to invest $14 million into a new halal insulin facility, expected to open in 2025, Pharmaniaga plans to fuel revenue growth by registering and supplying more of its currently approved 320 pharmaceutical and biopharmaceutical products throughout South-east Asia, the Middle East, Africa and Europe with a particular focus on the United Kingdom and Turkey.

As a critical step in entering the Middle East and North Africa (MENA) market, in March Pharmaniaga signed a memorandum of understanding (MoU) with the PRIME Healthcare Group, one of the United Arab Emirates’ (UAE) leading healthcare service providers, operating 15 medical centres, 15 pharmacies, multiple diagnostic centres and a multi-specialty hospital.

The MoU provides the framework that grants PRIME the exclusive rights to register, import, promote, market, sell and distribute Pharmaniaga’s pharmaceutical products in the UAE.

“With the halal pharmaceutical market set to grow to $205 billion by 2024, we believe the partnership with PRIME will widen our market reach and contribute significantly to revenue,” Zulkarnain said at the MoU signing ceremony.

He added Dubai would be the base to expand Pharmaniaga products to other countries in the region, but pointed out the company required about three years to strengthen its business segments before realising significant yields from the expansion plans.

In 2021 the group posted its highest-ever profit after tax of $38.6 million (RM172 million), exceeding the comparative $5.8 million (RM26 million) more than sixfold. The improved bottom line came on the back of a 77% surge in revenue to $1.1 billion (RM4.8 billion) from $600 million (RM2.7 billion).

Zulkarnain credited the increase to the supply of the Sinovac COVID-19 vaccine to the Ministry of Health and the private sector coupled with higher contributions from its concession, non-concession and Indonesian operations.

The positive financial performance continued in the first quarter of 2022 with the group’s profit after tax and zakat comparatively growing 26.4% to $6.5 million (RM28.9 million) and revenue rising 21.3% to $216.1 million (RM962.2 million).

© SalaamGateway.com 2022. All Rights Reserved


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