URC sees continuing 2-digit growth for its halal exports

Gokongwei-food subsidiary Universal Robina Corp. (URC) is hoping to continue its double digit growth for its halal exports, according to Audie Ugalino, URC’s Export Division director.

In a presentation before the Management Association of the Philippines (MAP), Ugalino reported that URC has been experiencing double digit growth for the past three years for its halal exports primarily to the Middle East and East Asia.

In the Middle East, URC’s major export destinations are the United Arab Emirates, Saudi Arabia, Qatar, Kuwait and Bahrain.

The Middle East accounts for 20 percent of URC’s total commercial exports, while the Association of South East Asian Nations (ASEAN) accounts for six percent.

URC’s major ASEAN destinations are Malaysia and Brunei.

URC’s major halal exports are its C2 tea beverage, Magic Flakes biscuits, Payless instant noodles, Jack ‘n’ Jill snacks, Great Taste/Blend 45 instant coffee, Cream All instant creamer and Cloud 9 chocolate bar.

Although he was not at liberty to divulge URC’s export earnings for its halal products, Ugalino admitted that the market is becoming a profitable source of revenue for URC.

The halal market, Ugalino said, is an estimated $580-billion market, growing by seven percent annually, and catering to an estimated 1.6 billion Muslim consumer base, spanning 112 countries.

Muslims, Ugalino said, are expected to account for 30 percent of the world’s population by 2025.

At present, Ugalino said, Philippine exports to the halal market is at less than one percent of total exports.

Halal products, he revealed, are beginning to appeal to a broader spectrum, in fact, becoming a new benchmark for safety and quality assurance.

He cited the fact that halal products needs to meet several standards such as the CODEX Alimentarius General Guideline for Halal; the ASEAN Guidelines on the Preparation and Handling of Halal Food; Halal-ISO; Halal-HACCP; Halal-GMP and several others.

Halal, Ugalino elaborated, is an Arabic term meaning “permissible, lawful and clean”.

Halal foods, he continued, are foods which are permitted according to the Islamic Shariah (Laws).

Halal food products, Ugalino revealed, must follow strict labeling laws and product dating.

Because of the strict safety and quality standards, Ugalino pointed out, halal products are now moving into the mainstream markets — even to non-Muslim consumers — thus offering even more opportunities for URC and other firms aiming to specialize in the growing halal market.

Potential markets for halal products, Ugalino cited, include halal/ethnic specialty stores, supermarket chains and the food service market such as universities, schools, prisons, restaurants, airlines and the military.

He continued that there is increasing demand for halal suppliers from European hypermarket and superstore chains.