rj. liow, ceo of ays spoke on challenges in the global halal ecosystem
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RJ. Liow, Founder & CEO of award winning AYS is featured in Expert Roundtable along with top Halal Industry Leaders @ World Halal Conference 2014.TRANSCRIPT
Food Security & the Global Halal Ecosystem: Challenges, Issues and the Future
World Halal Forum 2014
RJ. LiowFounder & CEO of AYS
Your Specialist Partner for International Market Entry, Halal Ecosystem, Halal Entrepreneurship & MICE
Key take outs…
•Key issue: the world is facing a potential crisis in terms of food security.
•The challenge is to provide world’s growing population with a sustainable, secure supply of safe, nutritious, and affordable high-quality food using less land, in the context of global climate change and declining resources.
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Key take outs…
•With the demand for Halal food increasing worldwide, the integrity of Halal food is always questioned, particularly when no unified Halal standard exists in the market.
•Key initiatives are required to encourage more investment and innovation, to build efficient and sustainable Halal ecosystem to support Food Security.
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AYS, Halal Ecosystem practitioner in Food & Personal Care Products (72% of Global Halal Economy) CEO of AYS
receiving “Best Halal Product Award 2009” from the former Prime Minister of Malaysia
““AnAn excellent book by RJ. Liow, CEO of AYS RJ. Liow, CEO of AYS which is fully endorsed by Halal Industry Development Corporation, Malaysia.”
Dato’ Seri Mustapa MohamedMinister of International Trade & Industry, Malaysia
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What is Food Security?
“Food security exists when all people, at all times, have physical and economic access to sufficient,
safe and nutritious food to meet their dietary needs and food preferences for an active
and healthy life.”*
* The Rome Declaration on World Food Security and the World Food Summit Plan of Action 1996, convened by the United Nations Food and Agriculture Organization
Global issues
•The food price spike of 2008 was a warning of what is to come
•A convergence of factors has made food security one of the most important global issues.
•An increasing population wants a more varied diet, but is trying to grow more food on less land with limited access to water, all the time facing increased costs for fertilizer, and fuel for storage and transport.
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Top 10 Challenges in Food Securities
1. Rising population2. Rising incomes, changing diets3. Falling water due to over pumping groundwater 4. More foodless days5. Slowing irrigation - Water supply is principal constraint6. Increasing soil erosion 7. Climate change8. Melting water reserves9. Flattening yields10. Little time to prepare -could be just one poor harvest away.
13 Global Harvest Initiative (GHI),
2013
The Halal New Economy:
•62% of the Global Halal Economy involve food
•Halal food is 17% of Global Food Industry
•Global Halal Trade: > US$2.3 trillion
•Halal Trade: < 10% of Global Trade
Global Market for Halal Products
FMCG sector
Global market for Halal-potential products, 2005**
• The Halal market has been quantified as the target market that can potentially be captured
• Approximately 72% of these Halal-potential products are categorized as fast moving consumer goods (FMCG)
• FMCGs in the primary meat and food sectors account for 62% of the market
Does not include Islamic Financial Services. Services involved in final product e.g. certification, logistics, R&D are included in sectorial values**Based on sales revenue***Halal processed food is taken as 66% of the total based on world Halal meat consumption****Only non-alcoholic beveragesSource: Euromonitor reports; FAOSTAT
100% = USD 2.3Trillion
Cosmetic &
Personal Care
Halal New Economy – Driven by 3 main factors
USD 2.3 trillion
Sizeable and growing Muslim
population
Sizeable and growing Muslim
population
Growing economic
development in Muslim countries
Growing economic
development in Muslim countries
Emergence of potential Halal
markets (China & India)
Emergence of potential Halal
markets (China & India)
Muslim population worldwide (2010) = 1.8 billion
Forecasted to grow at twice the rate by 2030 representing
27% of global population
“Between 1990 and 2010, GDP per capita for Muslims
worldwide has grown at a Cumulative Annual Growth Rate (CAGR) of 6.8% (Global
CAGR: 5.0%).”
“Chinese Halal markets is worth USD2.1 billion and growing at 10.0% annually.”
Source: Islamic Association of ChinaSource: United Nation and IMFSource: Pew Research Centre
The underlying principal for a Muslim diet food has to be:
•Halal: permissible
•Toyyibban: wholesome: healthy, safe, nutritious, quality
… which are universal to non-Muslims
Food Security & the Halal Ecosystem:The Future
• Currently the integrity of Halal food is always being questioned:
• No unified Halal standard exists in the global market
• Need Halal food product traceability system:
• To provide transparency of information on food processing
• To allow customers to be able to track and trace the process involved in food preparation
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Food Security & the Halal Ecosystem:The Future Implementing traceability system throughout the whole supply chain require participation in the entire supply chain – full commitment required.
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Food Security & the Halal Ecosystem:The Future
•Food safety and nutrition are usually addressed in the implementation of food standards, which often comprise of documented details of ingredients and process involved in the food production.
•This makes Halal food is sought after due to its detailed processing for healthier (nutrition) and safer (food safety) food products, which treated the animals as humanely as possible (ethics).
•Nevertheless, in multicultural and multi religious societies, food ethical standards are rather different.
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Food Security & the Halal Ecosystem:The Future
•The authenticity of the Halal certification and its logo due to many fabricating activities done by irresponsible manufacturing companies trying to tap into the Halal food market.
•Key initiatives are required to encourage more investment and innovation, to build efficient and sustainable Halal ecosystem to support Food Security.
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