International Egg and Poultry Review

US - By the USDA's Agricultural Marketing Service - This is a weekly report looking at international developments concerning the poultry industry.
calendar icon 27 June 2007
clock icon 5 minute read


The second annual World Halal Forum (WHF) concluded this past May 8, 2007, which was again hosted in Malaysia, one of the leading supporters and driving forces to develop the world halal market. Attendees included multinational corporations, medium to small scale enterprises, government organizations, Islamic service providers and logistics providers from all over the world.

The focus of the two-day forum was to encourage the expansion of the world halal market by tackling the following issues: halal integrity, development of new markets, building of national industries, provision of Islamic finance and introduction of corporate social responsibility and social welfare. Topics actually discussed ranged from the role of new halal ingredients and manufacturing processes to new initiatives for integrating logistics to distribution and international trade to business opportunities in the emergent retail halal market, as well as the syariah perspectives on key issues like stunning and thoracic sticking. However the success of the meeting was limited by many of the speakers using the time to promote their company, product, or service, rather than discussing the issue at hand.

The current halal foods market has been valued at $150 billion a year with some estimates as high as $560 billion. Conversely these estimates are lessened by the fact that a significant portion of the halal market is composed of meats produced and consumed domestically. The halal market has become the latest buzz and untapped market in the international marketplace. However the success of the WHF lies mostly on whether the industry can stay focused on coming to a consensus on universal halal standards and practices among all the Muslim countries despite the upcoming challenges and high expectations placed on them.

Malaysia is considered to be an established and successful leader in the halal market among the Muslim countries. It has made known its commitment to the future of halal with its established and highly regarded halal branding and certification programs, willingness to host the WHF, and its leadership in developing the halal market. It aspires to be an international hub for halal, but is currently working to become a regional halal food production and distribution hub under the third Industrial Master Plan (2006-2010). Malaysian halal products have even penetrated the British halal scene. Presently, Malaysia boasts a 60% Muslim population with a demand of more than $1.5 billion for halal food products a year. All hotels in Malaysia are required to serve halal foods attracting many Muslim tourists, and 70% of retail shelves are stocked with halal products (50% of which is produced in Malaysia).
Source: USDA FAS

Source: Senasa-DNFA-DTI-Office of Statistics of Foreign Trade

Note: Congo* = Democratic Republic of Congo; Data for first 5 months of 2006 and 2007
Source: Senasa-DNFA-DTI-Office of Statistics of Foreign Trade


China’s Commerce Minister Bo Xilai and the EU Trade Commissioner Peter Mandelson recently met for trade talks, which seemed to conclude on amiable trade terms. The European Commission (EC) is set to ask the European Union (EU) member states to lift the ban placed on imports of cooked Chinese processed poultry. No date has been released yet, though there is talk something will be announced later this fall. The ban was imposed in response to an outbreak of highly pathogenic avian influenza (HPAI) in mainland China in 2004. Under current EU rules the EC must first receive a proposal to resume trade from all EU member states before the ban can be lifted.

On another note, China may surpass Russia as the top importer of US chicken meat in 2007 if it continues to import at its current level and rate. The US exported $717.5 million worth of chicken in the first four months of 2007, much of it to China, which compares to $557.3 million a year ago. Supposedly China’s chicken importing spree was to offset its chicken flock and hog herd losses due to bird flu and swine disease respectively. China has helped boost the US poultry industry. In 2006, the US chicken industry struggled with low prices and excess supply, however the industry has made comeback in 2007 with production cutbacks, which have in turn increased prices and eliminated excess supply.

US broiler meat production in April 2007 was 2.86 billion pounds, up 1.6% from 2006. The increase is attributed to an additional slaughter day. Production is expected to total 18.1 billion pounds in the second half of 2007 (+2.3%), causing price increases to slow and then decline in 2008. However the extent of the price fluctuation will depend on the status of the US economy, competing protein supplies, and the strength of the export market.
Source: various news wires/USDA FAS/USDA ERS

Note: *2006 breakdown is FAS Beijing's estimation; **Sheep and Goat Meat
Source: National Statistics Bureau/USDA FAS

To view the full report, including tables, please click here

© 2000 - 2024 - Global Ag Media. All Rights Reserved | No part of this site may be reproduced without permission.