Trends and Business Possibility of Halal Food Industry Development in Southern Border Provinces

Economy News Tuesday September 11, 2001 14:06 —National Economic and Social Development Board

          Mr.Pornchai Rujiprapa, Deputy Secretary General, Office of the National Economic and Social Development Board (NESDB), revealed the result of the seminar on "Trends and Business Possibility of Halal Food Industry Development in Southern Border Provinces", which was held by Bureau of Neighbouring Countries and Border Economical Linking Area Development, NESDB, and Southern Border Provinces Administration Center, on May 10, 2001, at JB Hotel, Hadyai, Songkhla.
The Deputy Secretary-General said that the Halal food development in Southern border Provinces became more important since the seventh Tripartite Meeting of the Indonesia-Malaysia-Thailand Growth Triangle Project (IMT-GT), minister and senior officer levels, 1997. The participants agreed to develop Halal food industry in Southern border provinces of Thailand. linkage industry under the framework of the Five Southern Provinces Development Master plan (1997-2006)
The opinions gained from the Seminar was on the guidelines of Halal food industry development in Southern border provinces were concluded as followed:-
Guidelines on export promotion The promotion of Halal label would be accepted world wide including the World Muslim organization(Codex) and the regional Muslim organization (Asean Codex). The Halal label was used as a standard for general good as well as the market of these products would be expanded from not only the Muslim countries(1,500 million population) but also the world market(6,000 million population).
Guidelines on industry promotion The market would be development by studying taste and consumption characteristics. The government could support by providing the revolving fund, setting a comprehensive agro-industrial estate, creating incentives for the entrepreneurs in the estate about approval for Halal label, development package to attract consumer, supporting new investors, upgrading technological capacity, creating sustainable community industry, and promoting capacity building of agro-industry and organization.
The Deputy Secretary-General continued that Department of Livestock Development had projects supported livestock for Halal industry in 5 Southern border provinces. The projects were High Quality Cattle Husbandry promotion Project, Native Cattle Conservation and Development Project, Goat Breed Improvement and Promotion Project, and Mandarin Duck Farm Promotion Project. However, the export of Halal food should be studied in details about the implementation guidelines as followed:-
1. Demand , patterns and types of the product, as well as business conditions should be studied. For example, Saudi Arabia charged 20 percent tax on chicken while Brunei Darussalam did not import chicken from Thailand because of the slaughter method against the religious rule.
2. In the production plan, production bases should be adequately prepared. private sector should have a chance to participate in a comprehensive production plan and should have enough time for preparation.
3. There should be a marketing promotion for domestic meat at least 30-50 percent of all production.
4. Middle-East investors should be invited to invest in the estate.
5. The effect of World Trade Organization's free trade rule on halal food products should be studied.
Mr. Pornchai Rujiprapa also talked about business possibility of Halal industry in the private sector view that the food business could grow well even though many kinds of business were facing crisis. Halal label could expand business opportunities because Muslim population were 20.7 percent of the world population so it was a big market. The export goods should be processing food, such as, sausages, fried chicken and goat meat steak due to the reputation of these products. Then, the packaging was developed for better selling and the production must strictly follow the religious rules.
Moreover, Halal food prodution should have the production and inspection standards so buyers could be ensured that the production was strictly followed the Muslim rules. This would promote trustworthy of Thailand's Halal label in both domestic and international market.
Development News Bulletin, National Economic and Social Development Board, Volume 18, No. 05 : May 2001 End.
-SS-

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