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).