New Zealand ramping up halal market, certification process to lure Muslim tourists, meet rising demand

Photo: Sheep on a farm in New Zealand. New Zealand is the world’s largest exporter of sheep meat and ranks sixth or seventh globally as a beef exporter. It exports meat to 77 countries, and close to 26 percent of all its beef and sheep meat exports are halal-certified.

New Zealand is a halal meat-exporting powerhouse, punching way above its population size of 4.6 million. The country now wants to upgrade its halal certification process and hopes to attract more Muslim tourists, which would bolster the domestic halal market. How attractive is New Zealand’s halal food industry?

MARKET OVERVIEW

New Zealand is the world’s largest exporter of sheep meat and ranks sixth or seventh globally as a beef exporter. It exports meat to 77 countries, and close to 26 percent of all its beef and sheep meat exports are halal-certified.

Between October 1, 2014 and September 30, 2015, the country’s exports to Organisation of Islamic Cooperation (OIC) countries were worth $576 million New Zealand dollars ($420 million), according to the country’s Meat Industry Association (MIA).

“There were also significant, and greater, exports of halal-certified meat to Muslim customers in non-Muslim markets, although it is difficult to calculate the value of halal-certified exports to non-Muslim markets as the official trade data does not distinguish between halal and non-halal exports,” Tim Ritchie, Chief Executive of the MIA, told Salaam Gateway.

During that period, New Zealand exported 239,000 tons of halal-certified meat, representing just over a quarter of its total red meat exports. Of this, 83,817 tons (35 percent) went to OIC countries and 154,912 tons (65 percent) to non-Muslim markets.

The top export market was China at 78,000 tons, or 33 percent of total halal meat exports; followed by Saudi Arabia at 25,000 tons, or 10 percent; Malaysia at 19,000 tons, or 8 percent; and Canada at 10,000 tons, or 4 percent.

TRACEABILITY ADVANTAGE

The country’s adoption of individual traceability for cows through the National Animal Identification and Tracing (NAIT) scheme has bolstered its exports as ‘farm to the fork’ accountability has become increasingly important to consumers, especially in the halal sector.

DOMESTIC MARKET

According to 2013 census figures, there are 46,194 Muslims in New Zealand, around 1 percent of the country’s 4.6 million population. That figure will double to 101,000 by 2020, forecasts the Pew Research Center. As a result, domestic halal food sales are negligible compared to the export market.

However, the country is keen to bolster its appeal as a Muslim-friendly tourism destination, which means boosting its domestic halal ecosystem.

In early 2016, New Zealand’s Tourism Authority collaborated with the Kiwi Muslim Directory and the Federation of Islamic Associations of New Zealand (FIANZ) to launch a Tourism New Zealand Halal Guide that covered certified halal outlets, Muslim-owned eateries, and vegetarian restaurants. The country is banking on a rise in Muslim tourists, especially from Southeast Asia, and hence the guide is available on Tourism New Zealand’s websites for Indonesia, Malaysia and Singapore.   

New Zealand is also targeting the Middle Eastern market, with a number of Gulf carriers having started direct flights or increasing the number of daily fllights to its major cities.

CHALLENGES

Variation in halal standards

New Zealand is facing similar challenges to other halal meat and food exporters: the lack of an international standard and the rise in national regulators, such as in the UAE, which demand specific requirements for halal-labeled products.

“A significant challenge for the New Zealand industry is the variation in halal standards and requirements around the world. The New Zealand meat industry would like to see the development of an international standard for halal processing and certification, similar to the international Codex food safety standards,” said Ritchie.

Improving regulatory framework for halal export system

Although the country has been producing halal-certified meat for nearly 40 years, the government has not been not involved in the sector. But since the rise in demand for halal meat exports over the past decade and the increased importance placed on certification, New Zealand has been working to amend and improve its halal export system, which had previously only applied to red meat and meat products for exports to particular markets, mainly in the MENA region and Indonesia and Malaysia. Under proposals by the Ministry for Primary Industries, the system is to be expanded beyond red meat.

“Such is the importance of halal processing for the meat industry that six years ago it asked the New Zealand government to develop a regulatory framework for halal meat production. Key provisions of the framework are accreditation of the agencies that certify halal meat, accreditation of halal slaughtermen—around 250 are employed within the industry—and accreditation of halal systems at processing plants,” said Ritchie.

By 2017, the framework will be extended to cover halal processing of poultry, gelatin, and non-dairy fats and oils. “The New Zealand industry is working together with the government to develop a standard New Zealand halal logo,” added Ritchie. 

In the meantime, New Zealand has been inking agreements at a bilateral level. Given China’s importance as an export market, the country’s Ministry for Primary Industries and the China Certification and Accreditation Administration co-signed a Halal Arrangement in April 2016 that recognizes New Zealand’s halal certification.

OPPORTUNITIES

Exports have certainly benefited from halal certification.

New Zealand’s market-leading poultry producer Tegel Foods Ltd. is exporting to the Middle East and North Africa (MENA) region, while dairy producer Fonterra Co-operative Group Limited is expanding its overseas halal sales, bolstered by two manufacturing facilities in Malaysia that produce 18.5 million packets a year of its Fernleaf and Anlene milk products.

Dairy company Miraka Ltd. is also looking to increase its halal exports to Southeast Asia from $247 million New Zealand dollars ($179 million) to $500 million New Zealand dollars ($363 million).

New Zealand firms such as restaurant franchise BurgerFuel have also expanded abroad to tap into demand for grass-fed halal meat, with the company recently entering the Egypt, Iraq, Saudi Arabia, and UAE. 

New Zealand manufacturers are focusing on diversification as well, especially in the meat industry.

“In addition to producing different cuts and co-products, a number of New Zealand meat-processing companies are producing value-added products, such as burger patties, that are halal-certified. This is part of the strategy to maximize the economic return of the whole animal,” said Ritchie.

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