News From : DagangHalal.com (15 Oct 2009)
ZAMBOANGA CITY – RFM Corp. is eyeing to ship more halal meat products to the Middle East before the year ends.
Imelda J. Madarang, RFM vice-president and general manager for exports, said the firm plans to transport close to $2 million worth of halal meat products, particularly sausages, within the six-member countries of the Gulf Cooperation Council (GCC) composed of Saudi Arabia, Kuwait, Bahrain, Qatar, United Arab Emirates, and Oman.
“In six months’ time, we have shipped close to 50 containers of halal sausages,” she said.
Ms. Madarang was here at the weekend to discuss the potential of the halal market during the two-day 2nd Mindanao Investment Forum. She said RFM, which pioneered in the export of halal meat, expects to release at least two variants of frozen meat products within the year.
RFM frozen meat products could be found in the shelves of 200 key retail outlets within GCC countries. The company ventured in halal food due to its huge market potential. Last year, RFM’s meat processing plant in Laguna secured halal certification from the Da’Wah Council of the Philippines, a body recognized by the World Halal Council.
Under Muslim customs and traditions, consumers must be assured that the food they consume meets halal (permissible) requirements under Islamic law. This encompasses raw materials and other ingredients as well as processing and handling techniques. Poultry and beef must be slaughtered in accordance with Islamic rites to render them halal.
Although their export sales is just “a drop in a bucket” compared with RFM’s domestic sales that reached P7.55 billion in 2008, Ms. Madarang said venturing in halal would be the “driver” of the firm’s export division. “While the world food market grew by almost 5%, for the past five years, the halal food market has grown at a much faster pace of more than 9%. This growth trajectory is attributed primarily to the rapid population growth of Muslims worldwide,” she said.
There are 1.7 billion Muslims in 232 countries, accounting 25% of the global population. Although Asian countries have the largest share of the halal market, RFM opted to export products to GCC countries which import 90% of their food requirements. The size of the GCC’s halal food market is estimated at $43.8 billion.
Brazil and India hold more than 70% of the halal market in the GCC countries.
RFM makes Swift meat products, Fiesta spaghetti sauce and pasta, and Selecta ice cream and milk products.
Jose Ma. A. Concepcion III, chief executive officer and president of RFM, earlier said the firm expects to duplicate this year the company’s 23% revenue growth in 2008, when sales reached P7.55 billion and net income hit P234 million.
– Darwin T. Wee