Supporting the Halal Industry in ARMM


 

We will take on the lead role in the growth of the halal food industry in the region considering its huge potential markets in the East ASEAN Growth Area and elsewhere.”

 

                                                                                                                                                                        Hon. Zaldy Ampatuan

                                                            Regional Governor, ARMM                                                                           State of the Region Address, 2005

 

The Autonomous Regional Government (ARG) has been pursuing important and concrete steps to ensure the development of a robust halal industry in ARMM. Access to products and services that are deemed halal (allowed or permissible by the Holy Qur’an)  is an important  concern for Muslims who comprise the majority of the population in the region. As a quality assurance system, halal has also gained recognition from non-Muslims for its guarantee of safe and healthy food.

Two regional agencies -- the Department of Trade and Industry (DTI) and the Department of Agriculture and Fisheries (DAF) – are leading efforts to build a solid foundation for the halal industry in ARMM. In 2006, the ARMM Halal Food Industry Development Program was launched and in June 2008, the National Halal Convention was organized by the DTI with support from LGSPA. Another key strategy of the regional government was the establishment of the Muslim Mindanao Halal Certification Board, Inc. (MMHCBI), jointly created by DTI-ARMM, the ARMM Business Council and the Assembly of the Dar’ul Ifta

 

Crafting the Halal Certification Guidelines

 

Since its establishment in August 2005, MMHCBI has taken a significant role in the development of the halal industry. The Halal Certification Guidelines, formulated by MMHCBI with support from LGSPA, were used as a basis for the Philippine National Standards on Halal Food promulgated by the Bureau of Product Standards of the DTI. In crafting the guidelines, senior Muslim religious leaders were consulted including the Dar’ul Ifta (House of Opinion) of the United Kingdom and of South Africa, as well as Yusuf Qardawi, a prominent Kuwaiti-Islamic scholar.

 

It has been only three years since MMHCBI’s modest beginnings but already its members are being invited as resource persons of technical working groups here and abroad. MMHCBI Board members sit in the technical committee meetings on Memorandum Order 201, a directive from President Gloria Macapagal Arroyo for six national agencies to harmonize their initiatives in creating a halal export development program.  Five Board members of MMHCBI are part of the National Halal Accreditation Board of the Philippines (NHAB), tasked to safeguard the country’s halal food and accreditation standards. MMHCBI members are also part of the technical working group of the International Halal Integrated Alliance (IHI), which is drafting a global blueprint for the formulation of halal feeds.

 

Forging Partnerships

 

The MMCHBI has signed important agreements with key international partners. As a result of the study tours to Thailand and Malaysia organized and supported by LGSPA in February 2008, MMHCBI signed Memoranda of Understanding with Halal Affairs Committee of the Central Islamic Committee of Thailand (CICOT) and with the Halal Industry Development Corporation (HDC) of Malaysia to collaborate in the fields of halal education, research and industry development. The MMHCBI was singled out by the influential Halal Development Corporation (HDC) of Malaysia at the World Halal Forum in Kuala Lumpur, Malaysia held in May 2008 to be part of the harmonization of the international halal certification protocol. The HDC also invited the MMHCBI to sign an MOU to work towards further improving certification and the identification of investment opportunities for possible co-ventures in the fishery and marine processing, halal feeds production and poultry industries. Discussions with the HDC are on-going to determine the next steps to follow through on the It has been only three years since MMHCBI’s modest beginnings but already its members are being invited as resource persons of technical working groups here and abroad. MMHCBI Board members sit in the technical committee meetings on Memorandum Order 201, a directive from President Gloria Macapagal Arroyo for six national agencies to harmonize their initiatives in creating a halal export development program.  Five Board members of MMHCBI are part of the National Halal Accreditation Board of the Philippines (NHAB), tasked to safeguard the country’s halal food and accreditation standards. MMHCBI members are also part of the technical working group of the International Halal Integrated Alliance (IHI), which is drafting a global blueprint for the formulation of halal feedsMOU.

 

Negotiations are also ongoing with major industry players in the Philippines like the Chamber of Agriculture, Fisheries and Allied Industries of Northern Mindanao (CAFFINORMIN) and Jollibee Corporation.

 

Effective certification requires strong government support and collaboration. MMHCBI is now working with government agencies such as the Department of Science and Technology (DOST), the Bureau of Food and Drugs (BFAD), the Bureau of Fisheries and Aquatic Resources (BFAR), the National Meat and Inspection Service (NMIS), the National Heath Institute, the Food and Nutrition Research Institute (FNRI), and the Food Development Company (FDC). It is also exploring a partnership with the Mindanao State University System for research and development on halal foods.

 

Creating the Market for Halal

 

Halal certification is both a service and a product. It has also become a marketing tool that provides access to specific markets. Among MMHCBI’s milestones is the certification of five business establishments in Cotabato City and one in Tagum City in Davao del Norte; nine others from Cagayan de Oro, Cebu City and Rizal Province are on the waitlist and more inquiries have been received. Indeed, the marketing and advocacy efforts on halal certification, guided by the business and communication strategies that LGSPA assisted MMHCBI to formulate, are paying off. There has been a significant increase in the awareness of private business establishments and consumers on the value of halal certification.

 

Tam’s Bakery in Cotabato City, which opened in 1946 and certified halal in September 2007 was the first business establishment to be certified by MMHCBI.  Owner Tony Chi wasted no time as soon as he found out there was a certifying body in Cotabato and after listening to the presentation on its value, in  complying with the requirements to cater to his Muslim clientele. Now all his ingredients are certified halal and sales have increased by 15%. Bai Raga Mustapha, a 63 year old resident of Sultan Kudarat, has not eaten pandesal (a bread roll) for many years, unsure that the local bread sold in the market did not use pork fat. Recently, she and many others have been patronizing Tam’s Bakery now that it is halal certified. With renewed demand for bread and pastries by Muslim clients Tony is eyeing to move to a bigger space where production volume can easily be increased to 2500 kilos of flour a day. The possibilities seem promising enough that Tony aims to put up similar bakeries in other areas of Mindanao when the time is right.

 

Tam's Bakery was the first enterprise to be certified halal by the Muslim Mindanao Halal Certification Board Inc. (MMHCBI). Its sales increased 15 percent after being the first to get certified.

 

In July 2008, Emerald Durian Place, a manufacturer of durian-based products and pastries, was certified by MMHCBI. It all started in November 2007 when the Department of Science and Technology (DOST) invited Alma Uy, owner of Emerald Durian Place, to join a seminar on halal accreditation. Recognizing the potential to break into the global halal market, Alma complied with MMHCBI requirements. She renovated her factory, hired two Muslim employees, bought better food processing equipment as well as ingredients from suppliers that had been certified halal. In no time, sales doubled, especially in Cotabato City. Alma remains invigorated by the MMHCBI’s support and is bent on having one product certified halal every two months.   

 

Ustadz Saguir Salendar for years had to buy native chickens and slaughter them himself just to be sure that they were halal. In June 2008, opportunity came knocking when Ustadz Saguir joined a two-week seminar organized by DAF- ARMM and facilitated by MMHCBI on how to start a halal poultry farm. He set up the Aljijiyah Poultry Farm on a 2,500 square meter property. Two months later, the second poultry farm was built on a one-hectare piece of land in Simuay. Despite high start-up costs, business is booming. Ustadz Saguir has followed MMHCBI’s recommendations on feeds and vaccines.  The Aljijiyah Poultry Farm was certified halal by MMHCBI in September 2008 and soon after, three hotels in Cotabato City – Centerpoint, Las Hermanas, and Casablanca – expressed interest in ordering 500 dressed chickens a week.

 

Sustaining the Gains

 

In early October 2008, the regional governor signed an executive order officially creating the Halal Industry Development TWG, and allocating a budget of Php1 million. The EO outlined the role of the private sector in the development of the halal food industry in the region, ensuring the long-term sustainability of this initiative.

 

Another key development is the formulation of the Regional Halal Food Industry Development Master Plan. DTI-ARMM is presently at the start-up phase of coordinating the development of the master plan that aims to integrate priorities of local governments as articulated in their Municipal Agricultural Development Plans, the One Town-One Product (OTOP) program and local economic development priorities. The Regional Economic Development Committee (REDC) of the Regional Economic Development Planning Board (REDPB) chaired by DTI-ARMM is currently crafting the master plan with support from LGSPA and in collaboration with other key regional agencies, provincial LGU planners and the private sector. The REDC member agencies will package the master plan into investment opportunities for the Halal Food Industry Development Program.

 

With the concerted efforts of the MMHCBI, the private sector and the regional government, things are looking bright for the halal industry in ARMM, creating opportunities for promoting local economic development that will ultimately benefit not only the region but also the whole of Mindanao and the country as well.



Supporting the Halal Industry in ARMM
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