China's Growing Boom

Dated: 1 October 2007
By Rabbi Donneal Epstein, Head (Asian Desk), OU Kosher

The spectacular growth of the Chinese economy has been news for some time. The real story is that it is about to grow even bigger. This year China will overtake the US as the world’s second-largest exporter. Many experts have expressed the opinion that next year it will overtake Germany as the world’s number one exporter.
The growth has brought on even more foreign investment. To encourage this, the Chinese government has invested heavily in developing infrastructure, to the extent that China, with its 486 airports, is now one of the easiest countries in the world to travel around. And the easier it is to get around, the easier it is to do business.
One of the main areas of Chinese exporting enterprise affects kosher consumers, namely, food additives. These additives are substances added to food either to preserve flavor, or improve its taste and appearance. Food additives, for example salt and vinegar, have been used since ancient times. Over the last century many more have been discovered, of both natural and
artificial origin. There are many hundreds, if not thousands, of food additives on the market. The following is a partial list of categories of food additives:
acids, anti-caking agents, antioxidants, antifoams, bulking agents, flavors, flavor enhancers, flour-treatment agents, preservatives, and thickeners.

China’s new role
Due to China’s economic prowess as well as its genius in creating efficient mass products, it is becoming the major source of supply in the food-additive arena. It has, moreover, increased its monitoring of product safety in order to maintain a qualitative edge in the market.
Amongst the almost 300 OU-certified plants we have in China, several are located in the lovely province of Jiangsu, located in the middle of China’s Eastern coast line along the lower part of the famed and fabled Yangtze River. It is a region known for its lakes and rivers, as well as mountains. It is also very historic.

New market demands
One of the “smaller” cities in China is Wuxi, with a mere 4,000,000 inhabitants. Wuxi is also the home of three OU-certified food additive plants: DSM Citric Acid, Wuxi Bio Products and Wuxi-Syder Bio Products.
Another area in which China is growing by leaps and bounds is the dehydrated-vegetable business. Dehydration techniques have improved dramatically over the last decade or so. The old fashioned method left approximately 30 percent of the moisture in the dehydrated items. Newer methods have pushed these numbers down dramatically. The drier the item, the longer the shelf-life.
Chinese companies have been very involved in developing and trying new methods on an industrial scale. The results have been dazzling, as the world market cannot purchase Chinese dehydrated vegetables fast enough.
The Eastern Province of Shandong, besides being historic and attractive, also hosts some two dozen OU-certified dehydrated vegetable facilities. In the city of Qingdao alone there are 13 and in the city of Linyi there are eight. Relevant data shows that the economy of the province is keeping its momentum, especially Qingdao, where attractive incentives attract foreign investment.

Conclusion
Just over a decade ago, the concept of kosher was almost unheard of in China. Today however, it is almost a household word in the food industry. From Qingdao Huajie Food we hear, “It seems that we have already entered the gate of world buyers…Our export value is increasing rapidly since certification.” As the Chinese market continues to grow, the OU’s goal is to be there to help it along.

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HALAL FOOD: Kitchen of the World Goes Halal

HALAL FOOD: Kitchen of the World Goes Halal

Science and taste come together as Thailand eyes the lucrative Islamic food sector.
Dated: 1 May 2008
BY TANIDA DISYABUT

All across the world, populations of Muslim people can be found in almost every society and country. Comprising over a quarter of the world’s 6.4 billion population, or about 1.8 billion, the demographics and profile of Muslim consumers differ greatly from one market to another. The number who have migrated to developed countries and boosted their incomes with economic development is rapidly growing.

It is this segment of upwardly mobile Muslims that has attracted the attention of Thailand’s forward-moving food industry.

AFJ talks to Associate Professor Winai Dahlan, director of the world’s first Halal Science Center and dean of the Faculty of Allied Health Sciences at Chulalongkorn University. He is also the committee chairman responsible for drafting the Thailand Halal Standards which came into effect last year.

AFJ: We have seen an increase in the export volume of halal foods in recent years. Where are these key markets?

Halal food defines all foods that are permitted for consumption under Islamic law. In 2007, global consumption of halal food in more than 148 countries reached as much as 18 to 20 percent of the US$1.323 trillion in global food value.

This is a huge market. Food manufacturers all over the world, including those in Thailand, recognise its value.

However, we have to analyze the main markets where this consumption comes from. Regions of dense Muslim populations, such as the Middle East, Africa, South Asia and South-east Asia, are not necessarily profitable markets because these countries import mostly food commodities, not premium products.

Certainly, we can’t just look at population size. Purchasing power is important. While food consumption is US$6 a day for American Muslims and US$5 for the six million Muslims in France, in Indonesia this is only 30 cents, or 20 times lower. This is even lower in Africa, where there are as many as 350 million people (excluding North Africa), or about half the total population.

AFJ: What issues does one have to bear in mind when developing a halal food product?

Each market has a different demand. We have to study and analyze the different markets to understand how best to tap on the potential of key importing countries.

In some countries and for some products such as commodities, semi-raw materials or animal feed, the importer needs only a guarantee from the exporter, and not the certification label on the package. Ironically, this makes products look inferior in some markets because consumers think the halal-certified label is only for products that are not genuinely halal. But in many countries and especially for niche products, the certification label is a must and lends a value-add to products.

To be competitive, pricing is also important and products need to be developed at the best possible cost. Getting certified is not the only way to add value to products. We also have to understand the nature of the markets and invest in good logistics that can enhance cost cutting.

AFJ: Thailand is still growing its share in the halal food market. What is in it for Thai food businesses and what are our competitive advantages?

At present, the value of halal foods worldwide is over US$265 billion. Considering that Thailand is a major exporter of halal food, we are holding only a minor market share of 0.65% of global halal food value.

In 2007, 1,200 Thai manufacturers exported halal products worth US$1,711 million. Twenty percent of this went to the Middle East and the rest were exported to Indonesia, Malaysia and other countries in South-east Asia. Some have to be halal-certified but many products are halal by their processes, such as rice, fl our, salt and sauce. Our main competitor for halal food exports is Brazil. Malaysia, our neighbouring country, has been hastily developing halal products for export. But I do not believe that they are our competitors for now although they have strengths in non-food products such as medicines.

There is still a lot of room for improvement for Thai exporters of halal food. What they need is market knowledge and to understand the sensitivities of consumer demands in importing countries. These are mainly countries with high export-market potential, such as the US, Canada, European countries, Australia and New Zealand. Consumers there have a much higher purchasing power compared with our existing buyers.

To enhance Thai halal food exports and achieve our goal of becoming the "Kitchen of the world", the government’s strategy is to build confidence among importers in the quality of Thai halal food products. To achieve this, the government has provided vigorous support to lifting its standardization procedures and embarked on greater consumer protection for Muslims in Thailand.

We strongly believe that the Halal Science Center (HSC) showcases this strength in Thai export products. This also adds to a better image of trust and credibility, as buyers make decisions based on the psychological factor that science stands for safety.

AFJ: Tell us more about the HSC and its recent activities to promote the export potential and credibility of Thai halal food products.

We are the first laboratory for halal food in the world, established in 2003 with support from the government. It’s managed under the Faculty of Allied Health Science at Chulalongkorn University, Thailand’s best-known state university. The priority is on standardisation and lifting the high quality standards of Thai halal foods in accordance with Islamic law and the Codex Alimentarius. In addition, all Thai halal products must be certified for nutrition and hygiene, and be export qualified.



HSC is also well-equipped with modern and advanced scientific devices including LC/MS/MS, GS/MS, HPLC, GC, ICP, AA, FTIR, UC and realtime-PCR among others. These specifically provide all analytical services and research for the detection of contamination detrimental to halal food manufacturing, such as trans-fatty acids, animal proteins/DNA, gelatin, alcohol and microbial contamination. The services include a full-cycle halal factory system called Hal-Q, and a halal kitchen system called NPB Halal Kitchen or non-pork buffer. We also provide laboratory services for monitoring, investigation and authentication. On the business front, we provide training on science-based concepts in the halal business to entrepreneurs, auditors and employees.

Together with 19 staff, we have developed a curriculum for other universities on halal processes, conducted research and development of products, organize exhibitions and meetings, and publish trilingual journals on halal food.

HSC, in cooperation with the Faculty of Allied Health Science, offers the Bachelor programme in Nutrition and Dietetics. Our graduates are well trained and equipped with specialized skills in halal food standards, food manufacturing and certification. We have been developing a traceability system called Halal ICI Superhighway and Halal logistics.

Recently, the Halal Science Center together with the South Borders Province Administrative Center Engagement (SBPAC) researched and developed 81 bio-halal and organic food products. The products are marketed as ‘Halal and Good’, which refers to food safety and Islamic law compliance. In the past, we have addresses these two issues differently, but here we have integrated both into one process.

Products such as gotu kola (Centella asiaica) chips, sweet dried garcinia, dried mushroom chips, coconuts chips and black mushroom pizza, were successfully launched at a food fair in France. They were well accepted by European buyers.

Such feedback from the market increases our confidence. Thai cuisine is often perceived as a luxurious food because of its rich use of herbs, modern technology used to produce ready-to-eat Thai meals, social responsibility and ethnic flavour.

AFJ: Share with us some of the challenges faced by the halal business in Thailand.

The market needs quality. We have to continue developing unique products that meet buyers’ demands. As this center is non-profit, it carries a public service approach. And as scientists, we are evidence-based. All our data and tests have to corroborate not just from the business point of view, but confirm quality standards.

Our newly developed Halal food products can be sold as raw materials for further processing, as a side dish or combined with other foods. Many buyers from big retailers in Europe have told us that our products are at the high-end and deserve higher margins.

However, the biggest challenge in this business is not only product development but also human resource capacity. Halal food production is unique in its processes, from management and auditors to workers. Each part of the organization needs specific and different knowledge to develop the business. Transparency and the participation of staff at every level are keys to its success.

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Mission of the Halal Science Center

• Establish halal laboratories fully equipped with modern analytical and preparative scientific devices.

• Provide analytical services for the detection of any contamination against Islamic law (haram and najis) in raw materials and finished products supplied for the halal food market.

• Conduct R&D on new methodologies, product innovation and reagent kits for halal food verification.

• Prepare lists of chemicals, raw materials and products that accommodate halal food manufacturers and consumers.

• Maintain and update a website to provide key scientific information and networks for halal food manufacturers and consumers.

• Provide scientific support where needed to the Institute for Halal Food Standards and Islamic organizations involved in the certification of halal foods.

• Advise halal food manufacturers and restaurants in the use of Halal-GMP/HACCP/ISO 22000/QHS.

• Provide training programmes in halal science for manufacturers, consumers and the public.

www.halalscience.org

Source

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New regulatory guide on nutritional products

HSBC Bank invests in Asian Lifestyle

HSBC Bank, has today unveiled its activity plan for Asian Lifestyle, a brand new event which takes place at the Airport Expo Dubai from 1-3 March 2007.

The exhibition aims to celebrate South Asian customs, tradition and heritage, in what organiser IIR Middle East claims will be the biggest cultural festival of the year, attracting more than 30,000 visitors over three days.

Gul Khan, Regional Head of Wealth Management, HSBC, said, 'Asian Lifestyle is an event that complements our strategy of giving back to society, especially in those communities we serve. South Asian's represent a culturally important ethnic group in Dubai and we have lined-up a number of exciting activities to further our support.'

In addition to their Internet Lounge, HSBC will also be hosting a series of free financial seminars, aimed at the entire community, featuring advice regarding investments and other banking services of interest to South Asian expatriates of all ages. However with youth in mind, HSBC in partnership with Asian Lifestyle, are to launch a competition to design a bank note. Under the theme of 'Our Lifestyle in the UAE today', the competition which is open to children under the age of 16 years will start on 7th January 2007 with the deadline for all entries on 4th February. To raise awareness of the competition, Asian Lifestyle will host a road show to local schools to encourage budding artists to participate in the competition.

Entries will be sorted into three age group categories and hand drawn designs can be sent in by e-mail, post or web link and they will then be placed on the Asian Lifestyle website where visitors can then vote for their favourite designs. Three finalists per category will be announced on the 11th February and the designs mounted on to easels and put on open display. The general public will then have another opportunity to vote before the winners are announced and their designs displayed at the HSBC-sponsored Internet Lounge during Asian Lifestyle.

The winners will each receive a HSBC savings account credited with AED 1000 and the runners-up will each receive accounts with a deposit of AED 200. Local schools will also benefit, AED 10,000 worth of computer equipment will be delivered to the school of the winners, whilst the schools of the runners-up will each receive gift vouchers worth AED 1,000 to spend on books or equipment.

'Through this competition we want to encourage children to get in to the habit of saving for the future from an early age. We also want to give something back to the community and by gifting computer equipment and books to local schools we are investing in the future of our children,' added Khan.

Asian Lifestyle will feature hundreds of exhibitors offering products and services for the South Asian community, fashion shows, cultural performances, celebrity appearances, daily competitions, restaurants and food, with live cooking demonstrations and a bazaar of ethnic Asian artefacts.

Products and services on show at Asian Lifestyle will include, fashion and accessories, health, fitness, wellbeing and beauty, jewellery, home décor, consumer electronics, handicrafts and ethnic artefacts, music, property, travel and leisure, finance and investment, education and recruitment.

Zeffy Thompson, Event Manager, Asian Lifestyle, stated, 'Our partnership with HSBC is complementary, Asian Lifestyle is a celebration of South Asian culture and due to its mass appeal will bring together all ethnic groups in Dubai's cosmopolitan community, in a festival of life.'

Under the patronage of the Dubai, Department of Tourism & Commerce Marketing (DTCM), Asian Lifestyle is also supported by the Consulates of India, Sir Lanka and Pakistan.

Source

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The tiger is in deep trouble.