MARKETS
Emerging
Halal is becoming the processing norm as non-traditional Muslim countries become more culturally diversified.
Challenging but not a dead horse Is it Groundhog Day or just that good things take a long time? Penny Clark-Hall investigates the latest on New Zealand’s trade in the Middle East and India.
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he needle appears to have barely moved since Country-Wide’s last update on New Zealand’s trade with Iran and India in October, 2020. Processors and the Meat Industry Association attribute trade sanctions, politics, tariffs and logistics as the main culprits of why little has changed over two years. However they refute the query of whether they are flogging a dead horse. Nearly half of NZ $9.2 billion menu of red meat exports are halal-certified now (2020) and 90% of the animals processed are done so in the halal manner. It is becoming the processing norm as non-traditional
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“So, in terms of our strategy, it offers us the opportunity to reach more markets and diversify.” There is clear consensus from all that halal processing is a huge advantage to NZ trade. Alliance’s Head of Sales, Shane Kingston, says the perception and level of confidence consumers have in halal as a more ethical way of processing, regardless of their religion is keeping our options open. It is also accommodating consumers’ desire for peace of mind. Serving the needs of a diverse range of consumers through the halal regulatory framework has proved critical during the Covid-19 pandemic. Meat processing and exporting companies were able to redirect exports from traditional markets under pressure and weather the worst of the global disruption. Ironically, trade with India is partly stifled by NZ halal processing as its Hindu population (79.8%) can’t eat halal. However, the exporting company Quality New Zealand, of which Alliance owns 10.8%, is focusing on its Muslim population (14.2%) which represents nearly 200 million people and a trade of $2.5 million (2019) in red meat. While trade stopped in 2020 (likely due to Covid-19) it is expected to be a significant market to NZ in 10 years’ time, Kingston says. “We’ve seen significant growth in the kind of elite and affluent population over the past few years.” Kingston says there is a real opportunity to provide higher quality and imported product. Alliance is starting to build meaningful distribution across both hotels and restaurants, in partnership with Quality New Zealand, which is allowing them to meet the needs of premium consumers.
High tariffs Muslim countries become more culturally diversified. The Meat Industry Association’s senior strategy, trade policy and advocacy manager Esther Guy-Meakin says halal processing is a cornerstone of the industry’s strategy because it gives the industry flexibility and opportunity. “We export to 110 different countries globally and some of our biggest (halal) markets are actually non-traditional Muslim markets.” She says Canada, for example, is quite a large consumer (of halal) as is China, France and the US.
Since beef is off the menu in India, it is NZ sheep meat (mostly frozen lamb) that has been a relatively valuable trade, albeit a small one. India’s potential though is in its size and growth. It is the fifth largest and fastest growing economy in the world ($2.6 trillion growing at a rate of 6%). The population is growing faster than China’s with projections of continued increases to its socio-economic wealth, with a rapidly expanding middle class. However, without a Free Trade Agreement (FTA), the high tariffs (38%), prescriptive animal health requirements, differing rules for each of its 32 provinces and immature infrastructure (mainly chilled transport) makes exporting
Country-Wide
October 2021
