Posted on 10 April 2009.
The Philippines is now holding separate discussions with Kuwait and Brunei on possible investment opportunities in the domestic Halal sector, particularly in Mindanao, which has a comparative edge over other countries in the region because it is free of the foot-and-mouth disease (FMD) and the avian influenza (AI) or bird flu virus.
Agriculture Undersecretary Jesus Emmanuel Paras said the Department of Agriculture (DA) was offering foreign investors at least two big-ticket Halal investment proposals in Mindanao — the Halal Economic Zone in Davao City and a Halal model poultry farm in Cagayan De Oro City – worth a combined P3.04 billion.
Halal refers to the kind of food permissible under Islamic Law.
“The proposed Halal Economic Zone, which will cost at least P2.2 billion to establish, is the centerpiece of the halal investment portfolio being offered to overseas investors by the Arroyo government,” Paras said in a recent forum.
To be located in Davao City, the Zone is expected to generate 24,000 new jobs for Muslim Filipinos, and will boost the Philippines’ export earnings by at least a million dollars per year, he said.
“The other investment proposal packaged by the DA is a P840-million project involving the establishment of a Halal model poultry farm complete with research laboratories, abattoirs and other modern facilities,” Paras said.
Around 32,000 Muslim farmers and entrepreneurs in Mindanao are expected to benefit from this proposed initiative, he said.
The DA is offering this halal industry investment portfolio to other interested investors in the Middle East, Europe, Asia-Pacific and the USA.
“Our exporters will be pleased to hear that initial talks have already been held with Kuwait and Brunei on possible investment opportunities in this sector, notably in FMD- and avian influenza-free Mindanao,” Paras said. “We are very optimistic about this particular effort, which is made stronger by the fact that we at the DA, in tandem with the other concerned agencies, have started implementing the country’s first ever general guidelines on Halal food exports,” he said.
Besides the DA, the Departments of Trade and Industry (DTI), of Health (DOH), of Science and Technology (DOST), and of Tourism (DOT), along with the Office of the President, Office of Muslim Affairs (OMA) and the Autonomous Region in Muslim Mindanao (ARMM) comprised the Inter-agency Core Group that had crafted the guidelines for the country’s halal food exports.
Under Memorandum Order No. 201 (MO 201) issued by President Arroyo, the Inter-agency Core Group was directed to harmonize all government programs related to Halal trade in order to ensure compliance with international standards and the effective implementation of the Halal Export Trade Development Program.
With the global Halal food market valued at around billion dollars, the Philippines can earn at least billion a year by initially tapping just one percent of this lucrative share through exports,
Besides being avian flu- and FMD-free, Mindanao’s other advantages in developing a competitive halal industry is a reliable supply of feed ingredients like corn, rice, copra meal and fish meal to make its Halal food exports credible and genuine.
The DA has so far established 12 halal abattoirs in the South, mostly in the Autonomous Region in Muslim Mindanao.
It has also spearheaded the Philippines’ participation in Halal investment forums in various countries such as in Brunei, Malaysia, Thailand and Singapore, as well in the United Arab Emirates .
Being an active member of the ASEAN Working Group on Halal Food Guidelines, the Philippines also has been involved in the ASEAN-wide cooperation on Halal food industry development since the early 1990s, when Halal food export was just starting to grow in Southeast Asian countries such as Thailand and Malaysia.