@Halal July/August 2020 | Page 31

July-august. 2020 | Glam Halal Health 31 New Zealand targets Malaysia’s halal market BY KHIRTINI K KUMARAN while Dairymas , the liquid plant has the capacity to produce 16,000 metric tonnes annually. Forty per cent of its products are exported to 13 countries in the region. “The concept of Halalan Toyyiban is implied by Fonterra through Good Hygiene Practices (GHP), Good Nutrition and Stringent Food Safety Practices and Good Governance – complying with the halal regulations and Malaysian standards. “Each measure of production taken from farm, transportation and storage, manufacturing to export submits to Halalan Toyyiban. “To position Malaysia as a halal hub, Fonterra contributes by putting its dairy products on board and shipped to other countries. “The continuous effort to innovate new dairy products not only goes through a stringent process to ensure high quality but also add a value of wholesomeness to the products,” said Megawati. Malaysia has also recognised foreign halal certification bodies and authorities in many countries, including the Federation of Islamic Associations of New Zealand (FIANZ) and New Zealand Islamic Development Trust (NZIDT). The overall global halal industry, which includes pharmaceuticals, herbal products, cosmetics, healthcare, FMCGs, Islamic investment, banking, tourism, and insurances, is estimated to be at US$2.3tril. According to the Halal Industry Development Corporation (HDC), the market value is expected to reach US$147.4b by 2025. All in all, Fonterra Brand is committed to meet the halal standards and assure their dairy products comply with Halalan Toyyiban from grass to glass. DAIRY PLANT: Fonterra's manufacturing centre located in Shah Alam, Selangor. We clean our manufacturing sites in a way that actively prevents any chance of contamination from other sources. We also work with distributors who are halal-compliant to avoid any contamination of our consumer brands. Our team members are a part of the committee to look into the Malaysian standard so that we can bring the industry’s voice where we look into the developments of the halal standard.” — Megawati Suzari New Zealand, one of the world’s leading dairy producers and exporters, recognises the importance of Malaysia from the export and halal market perspective. Simon Hearsey, New Zealand Trade and Enterprise’s (NZTE) Trade Commissioner to Malaysia and Brunei, shared that Malaysia was one of New Zealand’s fastestgrowing export markets and one of its top 10 trading partners. Apart from the growing dairy export market in Malaysia, New Zealand acknowledges the potential in Malaysia’s halal market. As such, it has established a framework associated with its halal certification and products. “I think there is some significant synergy that New Zealand recognises with Malaysia and particularly with the fact that Malaysia has the absolute aspiration to become the global halal hub. That’s a fabulous ambition and something New Zealand recognises,” said Hearsey. There are two halal-certifying bodies within New Zealand, which is the New Zealand Islamic Development Trust (NZIDT) and The Federation of Islamic Associations of New Zealand (FIANZ). These two halal-certifying bodies help New Zealand exporters with their compliance with the halal standards and framework that have been put in place by MPI and help New Zealand companies to adhere to those standards. Hearsey also shared that both NZIDT and FIANZ work alongside MPI and Malaysia’s Department of Islamic Development (JAKIM) to ensure that all the halal certifying products are meeting the necessary standards set by JAKIM. “We have an excellent working relationship with JAKIM,” he said, adding that the relationship is founded on delivering the quality and assurance. “New Zealand exporters see the alignment with the Malaysian halal system as providing an opportunity that they can take products globally because of the recognition of the Malaysian halal system.” In 2015, Malaysia was New Zealand’s fourth single largest export destination for milk powder, behind China, the United Arab Emirates and Algeria. Two free trade agreements underpin the trade relationship between New Zealand and Malaysia; the Malaysia NZ Free Trade Agreement (MNZFTA) and the ASEAN Australia New Zealand Free Trade Agreement (AANZFTA). According to Hearsey, since MNZFTA came into force in 2010, two-way trade has increased by 57 per cent. “When we look at the export market, that is Malaysia for New Zealand, food and beverage (F&B) is 80 per cent of the goods New Zealand exports to Malaysia,” Meanwhile, dairy is New Zealand’s largest export category to Malaysia, comprising Simon Hearsey, Trade Commissioner (Malaysia & Brunei), New Zealand Trade and Enterprise (NZTE). nearly 60 per cent of the total value of New Zealand goods export to Malaysia. Since 2009, New Zealand’s dairy exports to Malaysia have grown by 55 per cent in value terms from US$222 million in 2009 to US$391 million in 2015. Milk powder comprised over 70 per cent of New Zealand’s total dairy exports to Malaysia, and it has grown by 38 per cent in value terms from US$178 million in 2009 to US$281 million in 2015. “Malaysia is an important market for us,” Hearsey stated. Hearsey added that Malaysian consumers were well-educated and understood the importance of food security and safety and quality of products. Thus, maintaining high standards was crucial to maintain the trust of consumers. New Zealand has some of the strictest product sanitary standards and food production standards anywhere in the world. “That’s something we are particularly proud of, and that’s something we don’t simply compromise on.” The Ministry of Primary Industries (MPI) in New Zealand is the regulatory body, which ensures that the high standards are maintained. However, in the context of halal, the MPI also regulates the New Zealand Halal Export Assurance System. New Zealand is the world’s eighth-largest dairy producer and exports 95 per cent of the milk it produces. Approximately three per cent of the world’s milk is produced in New Zealand. It also has one of the most stringent regulatory standards in the world for 4.8 million cows to produce 20 billion litres of milk annually. NZTE is a government agency charged with helping New Zealand businesses to grow internationally. “NZTE works with all of the exporting companies. Approximately 100 companies are very active in the exporting business, and about 25 companies are invested in the dairy export market,” added Hearsey. The Federation of Islamic Associations of New Zealand (FIANZ).