RFM sets sights on $1.5-B halal market

RFM Corp., the food and beverage concern of the Concepcion-Araneta family, plans to tap the lucrative global halal food market worth an estimated $1.5 billion as it aims to increase the contribution of exports to groupwide sales to double-digit levels.

Imelda Madarang, vice-president and general manager of the Corporate Export Division, said the conglomerate is looking at entering the halal market in Malaysia, currently the leading export producer of halal food products.

Madarang said exports are expected to account for 10 percent of RFM’s total sales this year. In 2005, RFM earned $3.4 million from exports, representing five or six percent of total sales. This is an increase of 9.7 percent from the previous year’s $3.1 million.

The global market for halal food could potentially be worth up to $500 billion.

Madarang said the company wants to take advantage of the growing demand for halal food.

Muslims are required to consume only food items that are considered halal, or lawful, under Islam. Countries in the Middle East, North America, Asian and the large Muslim populations of Eastern Europe have been contributing to the growth of the halal food industry.

Presently, the two strongest markets for halal products are Southeast Asia and the Middle East. These areas represent more than 400 million Muslim consumers. In total, a Muslim consumer base estimated to be 1.8 billion is spread over 112 countries.

In the past, many Muslim countries produced most of their food requirements domestically or imported them from other Muslim countries. However, the population increases are outpacing the food Supply, and Muslim countries are forced to import food from agriculturally advanced countries.

Madarang said the growth in exports will come from new markets served and private labelling. Among the products being exported to other countries include White King sauce mixes, White King native mixes and 2-in-1 noodles and sauce mixes, Selecta ice cream and Sunkist tropical fruit drinks, and Swift corned beef and hotdogs.

She said the company is also looking to enter smaller markets like supplying to ship chandlers to further improve its cashflow.

"There’s so much room to grow. It’s just a matter of finding the right market for us. We’re very happy with the public’s response to our products. They have been loyal to the Selecta and White King brands," Madarang said.

"The challenge is for us to be more competitive, to come up with products that are better in quality and cheaper," Madarang added.

Madarang said the company continues to focus on building up its branded foods business.

RFM pioneered flour milling in 1957 and since then has grown into a highly diversified food and beverage company with products such as: flour, feeds, poultry, processed and canned meat, fruit juices,snack foods.